Tontines

[nobodyspecial]

I had never heard of these (and I thought I was pretty good on history and economics)

http://www.washingtonpost.com/news/wonkblog/wp/2015/09/28/this-sleazy-and-totally-illegal-savings-scheme-may-be-the-future-of-retirement/

[FrugalFan]

Interesting. I can see some benefits of something like this.

[kendallf]

That was an interesting article.  I liked the comment about it being a murder incentive for the pathological.  Might want to keep the policy holders' names anonymous.  :-)

[EscapeVelocity2020]

I started reading this article (due to a click-bait headline) and thought it poorly researched, so I'm glad to now have a link back to it to read more fully when I have more time.  AFAIK, 'death bonds' are available to US investors, along with all sorts of high-risk, on the fringe investment vehicles.  Here's an interesting article on several 'crazy' investments:  https://www.moneyadviceservice.org.uk/en/articles/beware-toxic-saving-and-investment-products  I'm starting to enjoy reading more (since mainstream investing is boring, and the majority of my money is going to swan about until called out of retirement, in order for me to continue to lounge around).  Always gotta have something interesting going on, right?!  For another interesting alternative, tax-lien/foreclosure auctions can be pretty exciting :)

[gimp]

[Rosy]

Tontines - who knew, long and interesting article. Thanks!

Coming back here to read velocity's link later.

[nobodyspecial]

That was an interesting article.  I liked the comment about it being a murder incentive for the pathological.  Might want to keep the policy holders' names anonymous.  :-)

There is a similar thing popular in France where you buy someones house, then pay them a monthly rent while they continue to live in it and then you get the house when they die - a sort of reverse mortgage.

The French women that lived to be 110 had one - the "buyer" died long before her.

 

[kendallf]

gimp, you just prompted me to spend about half an hour reading about Archer.  I may have to watch a few episodes.  Apparently the murder motive has been thought of before.  :-)

There is a similar thing popular in France where you buy someones house, then pay them a monthly rent while they continue to live in it and then you get the house when they die - a sort of reverse mortgage.

The French women that lived to be 110 had one - the "buyer" died long before her.

Reverse mortgages are a highly marketed (and largely bad) product here in the US as well.  Hell, the Fonz from Happy Days will sell you one..

[nobodyspecial]

Reverse mortgages are a highly marketed (and largely bad) product here in the US as well.  Hell, the Fonz from Happy Days will sell you one..

Viager mortgages are a bit different, you don't get a lump sum - the investor pays you a monthly rent while you live in the house and they get it when you die.  Essentially it's an annuity with free housing and they are normally a personal arrangement rather than a bank

[Goldielocks]

Tontines sound a lot like group RESP plans ( educational plans) where if your kids don't go to college or use all the money, the remaining recipients get it.

Those of course have somewhat high admin and sales fees, and (previously) large penalties if you miss payments over 17 years..... Years that we all know are prone to unexpected events.... 

 Hmm I can see why public sentiment caused Tontines to be banned.