Bonus Bonds

By MARY HOLM

Q: My idea of Bonus Bonds is a lottery where you never lose your money.

Before Bonus Bonds my husband and I invested 2s 6d (25c) in the weekly Art Union, always losing but with the hope of one day being able to have our own home and to enable our children to have a good education.

When Bonus Bonds came, we saved our 25c and each month bought a bond. We had modest wins but stopped years ago when we had $1500 invested. We increased our amount as things improved.

That money is still invested, and each month I dream of what can be done if I win.

My husband died 15 months ago. My needs are modest. I have a lovely unit and even a car.

The only thing that hangs over me is the debt of my husband's rest-home care, which I know will come out of the sale of my unit when I'm gone.

But like all parents, it's nice to leave something to leave your descendants.

I like your attitude to Bonus Bonds better than the previous writer's. It's more realistic.

As you say, it gives you a dream. And, as long as you haven't got too much money tied up in it, it's great to have dreams.

I've got some good news for you, too, on your concerns about your husband's resthome debt.

There shouldn't be any debt to pay when your unit is sold, says Pat Thomas of the Ministry of Social Development.

When one spouse goes into a resthome, the couple is expected to use up all but $45,000 of their investment assets to pay for that care.

But the family home, car, furniture and other personal items are not included in that calculation. You can keep all of those.

The only situation in which there could be a debt to be paid when the house is sold is when both spouses go into care, or one has died and the other is in care.

The family are then expected to sell the house to help pay for that care, says Thomas.

But if other family members are still living in the house, they can often stay there until they want to move out and the house is sold. At that time, the Government will collect the money owed to it.

To get more information about your particular situation, you can phone the toll-free residential care hotline, on 0800 999 727.

Meantime, good luck with the Bonus Bonds!

* Got a question about money?

Send it to:

Money Matters

Business Herald

PO Box 32, Auckland

or e-mail: maryh@pl.net.

Please note: Letters should not exceed 200 words. We won't publish your name, but please provide it and a (preferably daytime) phone number in case we need more information.