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Firstly, ~125 years ago, there was a crash in the insurance industry. The insurers which offered tontines survived, all of the others disappeared. Secondly, th

by rundmc 4y ago

Firstly, ~125 years ago, there was a crash in the insurance industry. The insurers which offered tontines survived, all of the others disappeared. Secondly, the trust is managed by a board of trustees that have a fiduciary duty to look after the best interests of members rather than the best interest of shareholders. When the next crash of 2008 scale or worse occurs, would you prefer to be a general creditor of an insurer (which has a debt to equity ratio of ~12:1) or would you prefer to be a beneficiary of trust with no debt which manages assets like the Harvard or Yale endowments whilst being legally obliged to look after your best interest?

polishdude20 4y ago
Hmm that sounds not bad actually! How does it work say if I die before starting to take a monthly sum? Say I want to retire at 65 but I die at 40. I wouldn't get anything in that case. So the first hurdle to overcome is to actually reach retirement age? I guess pensions work the same way, we pay into a pension and if I die before retirement, goodbye pension. How are monthly amounts calculated? Is it, the more I put in the more I can get out monthly when I retire? Do I get paid more monthly as I get older because we're assuming more people in my "pool" have passed away? If I stop contributing after some time before I retire, do I still get a pension?