Lotto vs Bonus Bond

**RiderInBlack** · 9th January 2007, 08:45

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** · 9th January 2007, 08:47

can you get your 240 back??

**sAsLEX** · 9th January 2007, 08:50

Originally Posted by sl1nky

can you get your 240 back??

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

**slinky** · 9th January 2007, 08:56

might have to look into that one

**Firefight** · 9th January 2007, 09:08

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.

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** · 9th January 2007, 09:10

Originally Posted by RiderInBlack

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** · 9th January 2007, 09:12

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** · 9th January 2007, 09:20

Originally Posted by Squeak the Rat

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** · 9th January 2007, 09:22

Originally Posted by Squeak the Rat

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** · 9th January 2007, 09:47

Originally Posted by Firefight

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** · 9th January 2007, 09:48

Originally Posted by Cajun

I though you were selling your PoT shares

Nah , selling the arse6 instead.

F/F

**placidfemme** · 9th January 2007, 09:51

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** · 9th January 2007, 09:54

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.