Tontine~ the retirement wave of the future?

[Omega Man]

Seems interesting- from it's first being thunk up way back when to it's ruination when the "we can take care of that for you" group got involved.

It’s sleazy, it’s totally illegal, and yet it could become the future of retirement- The Washington Post- https://www.washingtonpost.com/news...vings-scheme-may-be-the-future-of-retirement/

From Marketwatch dot com-
Moshe Milevsky, a professor at the Schulich School of Business at York University in Toronto, is one of the world’s foremost experts on the subject of retirement. A prolific author, Milevsky’s latest book examines an old financial instrument that fell from favor: tontines.

http://www.marketwatch.com/story/tontines-the-retirement-plan-of-the-future-2015-06-29

Hey, you were just sitting there happy from a Thanksgiving Meal, might as well check out new concepts

OM

 

[36654]

Seems interesting- from it's first being thunk up way back when to it's ruination when the "we can take care of that for you" group got involved.

It’s sleazy, it’s totally illegal, and yet it could become the future of retirement- The Washington Post- https://www.washingtonpost.com/news...vings-scheme-may-be-the-future-of-retirement/

From Marketwatch dot com-
Moshe Milevsky, a professor at the Schulich School of Business at York University in Toronto, is one of the world’s foremost experts on the subject of retirement. A prolific author, Milevsky’s latest book examines an old financial instrument that fell from favor: tontines.

http://www.marketwatch.com/story/tontines-the-retirement-plan-of-the-future-2015-06-29

Hey, you were just sitting there happy from a Thanksgiving Meal, might as well check out new concepts

OM

If the investment income isn't there to maintain a level payment (i.e., annuity or pension) how could they ever offer increasing pay-outs?

Me thinks, someone is wishful in their thinking..............

 

[Omega Man]

If the investment income isn't there to maintain a level payment (i.e., annuity or pension) how could they ever offer increasing pay-outs?

Me thinks, someone is wishful in their thinking..............

It's not that. Let's say there are 30 in the group- as each member dies off the payoff escalates.
OM

 

[36654]

It's not that. Let's say there are 30 in the group- as each member dies off the payoff escalates.
OM

But, that's how an annuity functions. The folks that die early, enable the survivors to continue receiving benefits. The "risk" is distributed across a large "pool" of participants, some will get payments for a long time, others wont.

 

[akbeemer]

The only tontine I've been a member of involves the last surviving member peeing a fine whiskey on the graves of the other members.

 

[52184]

The only tontine I've been a member of involves the last surviving member peeing a fine whiskey on the graves of the other members.

Done as a true Tontine, that could be a tough order for the sole survivor to fill. 20 people each put in a bottle of fine Scotch whisky. Each year, each person gets one shot and pees it on the graves of the missing participants. As members die off, their annual shot is distributed throughout the rest of the members, in addition to the one shot each receives anyway, until that last surviving person has to drink 20 shots and start peeing.

I'm not sure that's possible, but I'll volunteer to be the last member and give it my best...shot.


Best,

DG

 

[akbeemer]

No drinking or peeing is done until there is only one member of the tontine left alive. The surviving member then starts the travel, drink, pee process. Repeat until all are peed upon.

You don't think we were sober when we came up with this, do ya.

 

[36654]

No drinking or peeing is done until there is only one member of the tontine left alive. The surviving member then starts the travel, drink, pee process. Repeat until all are peed upon.

You don't think we were sober when we came up with this, do ya.

My deceased neighbor was part of a Tontine like that. But, in that specific case, a favored bottle was buried near the ashes of each departed member. Under a hemlock tree, near a spring, at one of the better deer hunting "watches" for that hunting club.

Apparently, the search for the bottles often yielded a handful or two of ashes......