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

[george formby]

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 :/

Hows this for a thread dredge?


Things have changed a bit at the bank in the interim & I'm weighing up what to do with a few grand. The return on a term investment at the bank over 6 months will not will not fill the tank on me car so are bonus bonds looking a better option for 6 months or so until I find a better investment strategy? Or cave in to temptation & put another bike in the shed..........

[Maha]

A few older names in here, was only talking about Firefight at the weekend, and what ever happened to ZeroIndex?

[george formby]

A few older names in here, was only talking about Firefight at the weekend, and what ever happened to ZeroIndex?

Yup, lots of unfamiliar ones to me. They must be winners & live on big yachts in the med now.

I worked out the interest I would get from the bank. The petrol would almost fill both bikes but that's before tax.

[Maha]

I just worked out how much I spend on Lotto each week...:gob: still, I have have to odd win here and there, just enough to keep me interested.
Years ago I started watching the Friday night trots with a couple of mates that were really into it. After about 8-9 weeks, I won Pick 6 one night, never placed a bet after that.

[george formby]

I just worked out how much I spend on Lotto each week...:gob: still, I have have to odd win here and there, just enough to keep me interested.
Years ago I started watching the Friday night trots with a couple of mates that were really into it. After about 8-9 weeks, I won Pick 6 one night, never placed a bet after that.

I stopped buying lotto tickets after doing those sums..... Maybe luckily for me Jas started.:innocent:

[Road kill]

We collect between $500 - $1000 on lotto most years.

Our best single win has been $800.

We spend $6 on lotto each week.

[BoristheBiter]

when we had bonus bonds we made 10k in one year.
Everything else would have taken over 5 years to get there.

never won anything on lotto.

[kevfromcoro]

I won $700 on lotto a few years ago
bought another $500 tickets
didn't win a thing... any way I still had $200 in my pocket
which I I invested wisely.. on a couple of prositites and a slab of tui

[george formby]

I won $700 on lotto a few years ago
bought another $500 tickets
didn't win a thing... any way I still had $200 in my pocket
which I I invested wisely.. on a couple of prositites and a slab of tui

Oh.. You were there when they filmed the TV ad?

[Banditbandit]

Or cave in to temptation & put another bike in the shed..........


I'd go with the bike ... more lasting fun ..

[BOGAR]

I like the idea of Bonus Bonds so I am putting in some money each pay. But if I had put it in the bank I would be $360 better off by now so I am hoping my luck improves. :pinch: The best thing I like about bonus bonds is you can get your money out but it takes a little time so I haven’t been tempted to do so yet. A forced savings effectively.
And yes I still get the occasional Lotto ticket and never win but I still like the dreams of what I could spend it on so it is a bit of entertainment.

[jellywrestler]

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

no it's a tax for people bad at maths.

[jellywrestler]

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 :/

maybe if got about $30k in bonds, every month i get a bit, usually $40 sometimes $80 and occasionally more. been doing it on and off for years with the return just short of what i'd get from a bank after they've taxed your interest.
there's always the chance of a fat win as well
lotto, did that back in the 80's last

[jasonu]

We collect between $500 - $1000 on lotto most years.

Our best single win has been $800.

We spend $6 on lotto each week.

With stats like that you are the rare exception to the rule.

[avgas]

I like the idea of Bonus Bonds so I am putting in some money each pay. But if I had put it in the bank I would be $360 better off by now so I am hoping my luck improves. :pinch: The best thing I like about bonus bonds is you can get your money out but it takes a little time so I haven’t been tempted to do so yet. A forced savings effectively.
And yes I still get the occasional Lotto ticket and never win but I still like the dreams of what I could spend it on so it is a bit of entertainment.
Take the number of motorcyclist deaths in NZ, divide by the number of motorcyclists. Turns out your (and mine) luck is just fine. Who needs millions when you're dead.

[BOGAR]

Take the number of motorcyclist deaths in NZ, divide by the number of motorcyclists. Turns out your (and mine) luck is just fine. Who needs millions when you're dead.

Certainly a good way to look at it. :woohoo: