Lotto vs Bonus Bond

[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... 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... 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.

[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. 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. 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.