Lotto vs Bonus Bond

[RiderInBlack]

Being of tight Scottish Descent and having a sound mathematical mind, I have decided ta get $20 in Bonus Bonds per month, rather than waste what little money I have on Lotto. The main reason being is that with Bonus Bonds ya don't loose. Even if I don't win the monthly draw, I still have my $20. Therefore, I save/win at least $240/year, even if I don't win any draws.
How much do you waste on lotto per year, and have ya had any winnings?

[slinky]

can you get your 240 back??

[sAsLEX]

can you get your 240 back??

Its a interest free term deposit with the chance to wni stuffs I think, so yes.

[slinky]

might have to look into that one

[Firefight]

hey Doug,

yeah I am a Scot so what ?, I have a few $k in Bonus bonds,

I have made more in winnings than my partner has in lotto.

In fact the winnings equate(sp?) to more than what I would have received from interst had I invested in the traditional lending/investment institutions.

And I don't pay any tax on that money while it is in bonds.:sunny:

The money is available normally within 4-5 working days if I need it back in a hurray.

Of interst, I have about the same amount invested in two NZX50 companies
both are considered blue chip investments,(for me those are a long term investment,and I don,t worry too much how they perform) however, the dividends are taxed before they arrive in the letter box.

Oh and Cajun if you read this.. well done P of T up 10 points last week well done, looks like we will keep you on for a bit longer.


F/F

[Squeak the Rat]

The main reason being is that with Bonus Bonds ya don't loose. Even if I don't win the monthly draw, I still have my $20. Therefore, I save/win at least $240/year, even if I don't win any draws

Technically, if you don't win anything then you do lose to the value of inflation of the money over that period. $20 in your pocket today is worth more than $20 tomorrow.

And then there is the opportunity cost - what else could you have used the money for, eg 6% interest in the bank.

But if you're intersted in using your cash to win stuff then bonus bonds seem quite a good idea. A friend of mine has worked out that he has received roughly the same as interest from a bank in his winnings on BB since he started about 3 years ago. AND he has a chance of winning some big moolah.

Remember that a $13 triple dip ticket every week = 676 per annum. If you saved this money in a bank account you'd have $20,000 in 20 years.

[RiderInBlack]

Have put a private poll up (so no-one will know what ya have voted). Running it for 14days and it is multi option as there is two parts to it.

Re Bonus Bonds: Yes I can get the money back and can also loan against it. The money has to be in the Bonds for at least 1 Month before it is eligible for a monthly draw, but if ya leave it in for the next month, it is eligible for that draw too.

[Firefight]

And then there is the opportunity cost - what else could you have used the money for, eg 6% interest in the bank.




Yes true, but you will still have had to pay tax on that !


F/F

[Firefight]

Technically, if you don't win anything then you do lose to the value of inflation of the money over that period. $20 in your pocket today is worth more than $20 tomorrow.


Yes , your right S T R, but too me it is still a better investment.



F/F

[Cajun]

Oh and Cajun if you read this.. well done P of T up 10 points last week well done, looks like we will keep you on for a bit longer.
F/F

I been off work for two weeks most likely why they went up heheh. Back at work now,

I though you were selling your PoT shares

[Firefight]

I though you were selling your PoT shares




Nah , selling the arse6 instead.


F/F

[placidfemme]

I buy lotto every week, don't care if it makes me a sucker... I spend more on V's and smokes a week than lotto... so one way or the other I'd be wasting that money anyway...

Won a few times... nothing over $200 at a time... but on average I get about $150 every 2 months, which is slightly more than I spend on lotto... luck of the draw I guess... But I won't be complaining when I'm rich :)

[shafty]

Many MANY moons ago, when I worked for the Post Office Savings Bank, I was taught that Bonus Bonds returned 4% in prizes. Still a pretty good option being tax free and having the chance of a draw, if it was "play money" in the 1st place.

[Pixie]

I found some bonus bonds I've had for 40 years.
I though there might be some winnings after such a long time,but not a penny.
they're a rip off

[placidfemme]

Just a Q....

What are bonus bonds?

[shafty]

I found some bonus bonds I've had for 40 years.
I though there might be some winnings after such a long time,but not a penny.
they're a rip off

I hear what you're saying, - what value is it? $4 or $4000? The more you have the more chance of winning.

If you spend $100 on Lotto, it's dead the moment the balls have dropped (no pun etc)

[shafty]

Just a Q....

What are bonus bonds?

Check out http://www.bonusbonds.co.nz/

[jrandom]

Lotteries are a tax on the mathematically illiterate.

Bonus Bonds are a slightly more exciting form of a standard investment unit trust. They even come with a prospectus and information about historical rates of return, etc.

I guess the answer to the original question depends on whether one would rather invest one's money, or give it away.

[Hoon]

Lotto is for chumps. I've won more money playing poker than I ever did on lotto. Sure the odd person will strike it lucky but for every powerball winner there is 38,383,799 losers. The jackpot would have to reach $19.2 mil before returning favourable odds (ignoring other prizes or multiple winners).

In 2006, NZ Lotto took $719 mil but only paid out $398 mill. So on average you will only get $0.55 back for every dollar you invest.

But in saying that I'm still guilty of buying the occasional ticket when the jackpot gets over $5 mil.

[ZeroIndex]

Can't remember where I heard it, but it's a brilliant statement:
"Lotto is a tax on the financially unintelligent"

[Swoop]

I double my money every week... fold it in half and put it back in the wallet!

Lotto - Yeah Right!

[jrandom]

Can't remember where I heard it, but it's a brilliant statement:
"Lotto is a tax on the financially unintelligent"

Hmm.

Perhaps it was in my post, two places before yours?

[steved]

I just ran some tin-arse numbers from the Bonus Bonds prospectus. It looks as though a term deposit absolutely rapes Bonus Bonds on an average net return. You just can't beat gambling for some people, even when they're trying to save/invest.

Total revenue / Total funds = 6.3% which is not bad, an average term deposit/on-call rate. Makes sense when you see that all they invest in is government bonds and banks.

Total revenue - bonus bond management fees - tax / Total funds = 3.2%.

That is, from $2.1 billion invested, Bonus Bonds paid out a whooping $76 million. Holy crap, what a great idea Bonus Bonds are :/

[Beemer]

I've had small wins on Lotto - biggest about $50, although I did win $100 on a scratch kiwi many years ago. Got my first $20 prize from the Bonus Bonds I bought years ago last month - may it be the start of my change in fortune!

But you have to be in to win!

[Oakie]

I had a spare $500 for six months 25 years ago so I put them into Bonus Bonds on the theory that over 6 months 500 units would give me a decent chance of winning. Chance yeah, but I didn't win a cent on them. At least I still had the $500 at the end of the period though so that beats Lotto hands down I guess.
I also remember being told that you should renew the bonds every so often as the older numbers had a lesser chance of winning for some reason. Can't think why.

[peanuteater]

from memory, the highest odds on "gambling" is the tab, around 82 cents in the $ is paid out in winnings, i think lotto was the lowest pay out ratio.

[steved]

from memory, the highest odds on "gambling" is the tab, around 82 cents in the $ is paid out in winnings, i think lotto was the lowest pay out ratio.
Aren't most pokie machines programmed to output somewhere in the 90-95 cents per dollar gambled vicinity?

[Hoon]

Hmmm I think the best gambling odds you can get anywhere would have to be the roulette table. A single zero roulette table pays out 35:1 on 36:1 odds so you are looking at a ROI of $0.972.

I remember reading about some guy in the US who sold up everything he had and placed a US$150K bet on red or black at the roulette table......he won.

[ZeroIndex]

Hmm.

Perhaps it was in my post, two places before yours?

I hadn't actually read anymore than the first post when i replied... but I remember hearing it maybe 6 years ago in South Africa... I think it coulda been from that Rich Dad, Poor Dad book by Robert Kiyosaki.

[Warr]

Other banks do something similar to Bonus Bonds. I have a Westpac no interest account that goes in some draw depending on what is in it.

Tis called Save & Win
http://www.westpac.co.nz/olcontent/olcontent.nsf/Content/Save+and+win