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| Thread ID: 65592 | 2006-01-23 19:50:00 | How good are Bonus Bonds? | Organicpete (133) | PC World Chat |
| Post ID | Timestamp | Content | User | ||
| 423636 | 2006-01-23 19:50:00 | Hi , A relative of mine has a lump of BB, has had them for years. I did a quick bit of maths based on his last lot of 'winnings' and it seemed to amount to about 3 %/annum... He reckons he used to win larger amounts but now only a string of $20's. Are BB a good investment, especially since the ANZ took over ? cheers Pete |
Organicpete (133) | ||
| 423637 | 2006-01-23 19:58:00 | You are gambling for your share of about 6% total interest. Nothing to do with "ANZ taking them over", its a computer generated random draw. Remember that the "winnings" are tax free, whereas "interest" is not. Long term you could expect approximately the same as (or slightly less than) interest after tax. Unless you win big time. I seem to get $40 - $180 per month on average. |
godfather (25) | ||
| 423638 | 2006-01-23 21:41:00 | You are gambling for your share of about 6% total interest. Nothing to do with "ANZ taking them over", its a computer generated random draw. Remember that the "winnings" are tax free, whereas "interest" is not. Long term you could expect approximately the same as (or slightly less than) interest after tax. Unless you win big time. I seem to get $40 - $180 per month on average. You are doing very well. Do you think it is best to invest in one large amount or split your investment into say $100 lots?. |
Pato (2463) | ||
| 423639 | 2006-01-23 22:08:00 | Read the reports at the bonus bonds website. The odds of winning major prizes are real poor as there is a lot of money tied up in Bonus Bonds (like 2.4 billion). 3% seems right going by Bonus Bond reports (for 2004 at least). More is invested with time but the the prize payout doesn't lift unless the investments made by Bonus Bonds are returning well. |
gibler (49) | ||
| 423640 | 2006-01-23 22:36:00 | I have found returns to be about 3.5% over a number of years but one could always win the big one!! | Pato (2463) | ||
| 423641 | 2006-01-23 23:05:00 | You are doing very well. Do you think it is best to invest in one large amount or split your investment into say $100 lots?. I don't follow the reasoning here. Bonds are in $20 "units", the numbers are randomly drawn. A $100 investment is 5 units with 5 numbers. Unless you suggest there is bias in the draw mechanism regarding contiguous number groups (and I know the person who designed it, there is none) then "splitting" the investments seems illogical as they are already "split" into separate numbers. The return value depends on your marginal tax rate. If you had a 39% marginal tax rate, a 3.5% tax free return is getting towards a 5% real return. So you are paying something for the chance of winning. As to "doing very well", you cannot make that judgement as you have no idea on the value of the bonds I hold. Its actually not "doing that well" in my view. |
godfather (25) | ||
| 423642 | 2006-01-24 00:14:00 | Must be time to convert to more Telecom shares. I make furniture,so I would know. |
Cicero (40) | ||
| 423643 | 2006-01-24 00:19:00 | Bad odds? With a 3% return? That's a lot better than Lotto. :D |
Graham L (2) | ||
| 423644 | 2006-01-24 00:51:00 | Well I have had $100 invested since I was 12 (19 years ago) for the first few years I won zip, then for about 5 straight years i won about $150 a year (averaged) then nothing for another 5 years then $20 then nothing since I have decided that it is my equivalent of an eternal lottery ticket, one day I may strike it big (well biggish), but I am not spending $5 a week on a piece of paper i throw away every saturday night |
Morgenmuffel (187) | ||
| 423645 | 2006-01-24 01:15:00 | Godfather, Thanks for the enlightenment and putting me in my place. | Pato (2463) | ||
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