Tag Archives: Ontario Savings Bonds

LottoMax $50M winner

In Ontario a Lucky Lotto Winner won $50M but Missing Bond Owners have $65M waiting

Sophie Rizavas is ONE lucky Ontario Lady- she’s a new multimillionaire following her jackpot win in the May 9 Lotto Max draw. She won $50M. Nice. (She also won $5 for matching the first 2 numbers of her Encore play).

$50M is a lot of money.  I’ve always thought that such a big win is way too much for just one winner. Who really needs $50 Million? So yes,  I wish more lucky families were sharing this win. I don’t think Sophie Rizavas would even mind that. But due to some very nice timing, I can let you know that there could be other winners in Ontario that don’t even have a ticket. Because, this week I finally found the number. The value of Outstanding Ontario Savings Bonds that have matured but have yet to be redeemed. In my world we call that UNCLAIMED financial assets. The value of those Unclaimed Ontario Savings Bonds as of March 2013 was: 

$56,013,600.00 + Interest of $9,592,169.00 that’s…

$65,605,769 unclaimed 

A letter may have been sent to the owners who originally purchased these bonds, but the owner may have moved or may have died or may be incapacitated and their family has no way of knowing about the Bond. The Ontario Savings Bond Team has indicated to me they “do not have any authority to find the owner(s) of the unclaimed bonds”

I am seeking more info from the Ministry related to these bonds but I’m not allowed to ask many questions given that an election is in progress.   In the meantime, if you have reason to believe that an Ontario Savings Bond has gone missing in your family connect with the Ontario Savings Bond Office. 

1-888-212-BOND (2663)  or visit the website for more info 

Unclaimed Ontario Savings Bonds

Call them if you think someone in your family has misplaced a bond

Lost Bonds? Can including them in an RRSP reduce the risk?

Do Bonds Belong in an RRSP?

If it reduces the chance that the Bond becomes a “Lost Bond”  I think that’s a good reason to include Bonds in an RRSP

canada-savings-bondsA recent blog post (April 24th)  caught our interest as posts from the Canadian Couch Potato often do. This particular post was whether or not Bonds should be held within an individual’s RRSP. You can link and read this post here  

The post gave a thorough analysis for readers to consider which including a lot of factors like bond interest being fully taxable (versus dividends/capital gains), asset allocation considerations, comparable yields, RRIF withdrawal rules, foreign tax withholding etc.

The post from Dan Bortolotti was a summary of the work that he and & Justin Bender did in their white paper on the subject  including their full methodology. Their white paper Asset Location for Taxable Investors can be found here 

Again, Dan and Justin’s conclusions were based on a multitude of factors but they concluded that, it would have been preferable to hold bonds in an RRSP during the last decade. Those factors all need to be considered or re-considered going forward. But, I would like to humbly offer another factor going forward for their consideration…the risk of actual physical loss of the Bonds …will keeping the bonds inside an RRSP reduce the risk of them being lost all together ?

Because, the fact is that too many bonds are being lost and ending up unclaimed.

As of last December, the Bank of Canada has $420 Million in Unclaimed/Matured Canada Savings Bonds waiting to be claimed. Earlier this month, I received confirmation that Ontario had $64 Million in Unclaimed/Matured Ontario Savings Bonds as of March 2013, waiting to be claimed.

In both instances, there is no one within the Government looking for those owners. I have volunteered to do so. We will see if they accept my offer because I find it tragically sad that Canadian investors are losing track of their hard-earned financial assets including Bonds. What makes matter worse is that the Unclaimed interest earned by those bonds has most likely been taxed along the way. (Yes, It would be interesting to know if the T5’s reached the bond owner directly or if their returns were reassessed for that interest)

Assumption Alert

I’m going to make an assumption here that there is a better chance that an individual, a loved one or an executor will have a better chance of finding and locating an RRSP than a Bond certificate that could have very well been lost, destroyed, or misplaced somewhere along the way to it maturing. So…on the basis of that Assumption I think Bonds do belong in an RRSP.