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Reality vs. The Dream

Aug 30, 2023 | Kristie Svejda, CDFA®, CPFA®


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We all can understand the allure of the “Get Rich Quick” possibility that comes with buying a lottery ticket, but scheduling automatic contributions to savings and retirement accounts can be just as easy – and, in the long run, more rewarding.

Photo of lottery tickets

As a financial advisor I am continually advising clients on best practices for saving versus spending. When we discuss savings we take small bites, like automatically moving $200 per month into a Roth IRA or $100 per month to a child’s college savings for instance. If the payment is scheduled and happens in the background with little or no additional thought needed, it’s basically painless. 

Compare this to my lotto dream. Twice a week a group text reminds me to send Shawna money. Had I known I would end up spending $50 on lottery tickets I would have never agreed, it is not in my DNA. However, it is interesting to see how readily I endured the pain to send more cash for a chance at fun and riches split with my friends. 

As I write this blog I am hoping that someone will win if for no other reason than to end the cycle of Venmoing Shawna $10 twice a week. This lotto process has re-taught me the power of investing and how quickly money will compound, especially if you automate the process and don’t have to think about it. 

Come on big money!

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Wealth planning

Disclosures

The views presented herein are solely those of Kristie Svejda and do not necessarily represent the views of RBC Wealth Management. Clients should work with their Financial Advisor to develop investment strategies tailored to their own financial circumstances. Past performance is no guarantee of future results.

Kristie Svejda, NMLS # 1956603 through City National Bank, may receive compensation from RBC Wealth Management for referring customers to City National Bank. Banking products and services are offered or issued by City National Bank, an affiliate of RBC Wealth Management, a division of RBC Capital Markets, LLC, Member NYSE/FINRA/SIPC and are subject to City National Banks terms and conditions. Products and services offered through City National Bank are not insured by SIPC. City National Bank Member FDIC.

Investment products offered through RBC Wealth Management are not FDIC insured, are not guaranteed by City National Bank and may lose value.