Well, I guess if you're going to be that cheap about it then you're right. At such low volumes it's not worth the fees. I was thinking more along the lines of $365/year, which would be more workable if done right (taking advantage of current trading relationships and being done once a year in a lump sum or even less frequently).
It's not about the cheap aspect of it so much as about being prudent in taking the occasional high risk via lottery and keeping most of my assets in more conservative holdings.
Wait...what lottery is this? The Mega Millions lottery is the only one I know of that has reached $200+ million levels (3 times) and it has 175,711,536:1 odds.
If you're not setting the Annuitized jackpot as the benchmark, there have been at least 6 instances where the jackpot was over $200 million with the cash option according to wikipedia. You're also not taking into account multiple drawings per week over a given number of weeks. The lottery didn't hit $200+ million on Tuesday and go away the next Friday. Maybe I don't have 180 single instances over 15 years where it was 200+ million, but even if we lowered it to the chance of winning $100 million, or $10 million, it is still not something to scoff at for $180.
By the way, even if your figures were accurate, you are not accounting for the possibility of several people winning.
Each person would make around $1.7 million before taxes...not $640 million. Any large jackpot prize with good odds will draw many more players, leading to this effect.
You're right, I did not factor in a split in prize $, but I'm still feeling $1.7 million for $180.
Again, your math is wrong. Investing $180 in Apple in 1997 would have lead to approximately $86k today. It would be up to $8.6k (not $3k) if diversified in 10 companies.
Not wrong, I'm just accounting for the spread of $180 between 10 companies and the costs associated for buying from each of those 10 companies separately as opposed to a singular investiture. If you bought your stock at the lowest price in '97 and had nothing in fees you might hit $8k. No fees in 97? Nah...
Of course not! We're talking about low probability events here. When compared to winning the lotto, even extremely unusual investment scenarios are likely by comparison.
As always, keep in mind that this is not general investment advice. It's far too reckless for bread and butter investment. I'm just trying to give a better alternative to the lotto.
I thought it was general investment advice, otherwise I wouldn't have bothered mentioning that I didn't think it was stupid to spend a few dollars on Mega Millions when the jackpot was high. As I was washing dishes yesterday I concluded that aside from the aforementioned dissent about high risk investments, I don't otherwise disagree with you. It was all about this:
If you're willing to throw money away for a fantasy, you should instead be tossing it into high-risk investments. If you put $1/day into Apple stock back in 1997, you'd have roughly $218,400 today. If you had done that for several years, you'd have several million dollars today. It's unlikely that you would have picked Apple, but compared to winning the lottery...
My point is that those who occasionally play the lottery in the hopes of winning obscene amounts of $$$ aren't 'throwing' their money away, and that the lottery is fiscally sound for the occasional high risk investment without the overhead of fees. If Apple had a Direct Stock Purchase plan or something similar, than investing $25 a month or whatever would be simple for most users, but it's not that simple. Picking up a lottery ticket at the grocer/gas station/news stand? Simple.
Having spent and lost $6 on Mega Millions so far this year, I don't feel like it's been a waste so much as an equal opportunity, non rigged (probably, less dangerous than insider trading anyways, and zero dependencies aside from splitting with other winners), chance to make gobs of money off what is essentially throw-away penny stocks acquired without fees, only I don't have to wait more than 2-3 days to see how things turned out before I win/lose.