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Wondering What to Do with your Bonus Bond Funds?

22 October 2020

On August 26th 2020 the ANZ Investment Services (New Zealand) Ltd (ANZIS) announced it would stop accepting new investment into the Bonus Bonds Scheme and would be winding it up by October 2020. This left many bondholders quite surprised as this scheme had been running since it was launched by the New Zealand Government through the Post Office in 1970.

Investors were advised they had two choices. They could redeem their Bonus Bonds before the scheme starts to wind up, or stay in the scheme and be entitled to a share of the remaining reserves, after expenses, when the scheme is wound up, Those who choose to stay during the wind-up phase will have their investments locked in during this process, which may take up to 12 months.

With only a week or so to go those who have Bonus Bonds should act fast if they want to withdraw funds by deadline at the end of October 2020. If you’re activated for MyBonusBonds you can do it online. Or if you are an ANZ customer you can complete the Contact Form or call the contact centre to get activated for MyBonusBonds. Go to https://www.bonusbonds.co.nz/ for more information.

If you have decided to withdraw your funds now you may be wondering where to invest them?  Read on to find out how Cole Murray’s Wealth Generation team can make a difference.

Take the time to understand your goals

We work with you to design an investment plan that matches your needs and your timeline.

When it comes to short-term goals (e.g. less than five years), the money you invest needs to be quickly accessible and protected from market volatility, while investment solutions like KiwiSaver are locked in and designed to yield long-term returns.

Understand your ‘risk tolerance’

Time isn't the only key factor. It's also important to know how you feel about returns and potential losses to your investment – in other words, your 'risk tolerance.'

By helping you understand what your risk tolerance is, we can tailor an investment solution that will help you sleep at night rather than worry about what will be left after the next Bitcoin crash.

Ensure all your eggs aren't placed in one basket

We can diversify our clients' investments in four different ways. Once we have a good understanding of your risk tolerance and situation, we construct a portfolio that will give you exposure to all the major assets classes, such as cash, fixed interest, equities or property.

As a non-aligned adviser, one of the big benefits we offer is also being able to construct our portfolios using a number of different providers, so we can offer a variety of ways to take care of your nest egg.

Keep up-to-date

We always stay on top of what's happening in the market, so you don't have to; it's our job to keep you informed and let you know how your investments are performing. This is an opportunity to discuss any potential changes that might be necessary – particularly if your circumstances or the market outlook have changed.

So, if you want to talk about how and where to invest your Bonus Bonds money get in touch to organise a no-obligation 30-minute chat with an Investment Adviser today. 

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