We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (17,774)
  • Industry Conferences (3)
  • Industry Job Openings (3)
  • Moore on the Market (207)
  • Negative Media (139)
  • Positive Media (73)
  • Sheryl's Articles (656)
  • Wink's Articles (265)
  • Wink's Inside Story (238)
  • Wink's Press Releases (99)
  • Blog Archives

  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • May 2008
  • February 2008
  • August 2006
  • To Live Better Longer, you may soon find yourself investing in a tontine

    December 18, 2017 by William Borton

    Numerous factors have helped increase human longevity. Many of us will live to be 90, and some perhaps even 100 or more. Unfortunately, in our younger years, many of my fellow Baby Boomers were not particularly focused on the possibility of living 35 years past retirement.

    Followers of my writings know my mission is to help my generation “Live Better, Longer”. With that in mind, one of the drums I beat most loudly is the need for guaranteed lifetime income.

    For many of us, Social Security is the only source of income we can’t outlive. Pension plans are going the way of the dinosaurs. The only other financial instruments that can create an income stream we can’t outlive are annuities.

    But traditional annuities are becoming increasingly complex as insurers try to cover all the bases. Attempts at including inflation protection are expensive and (can be) off-putting to some consumers. Add to that the well-funded “educational” campaigns by so-called “experts” and pundits, who eschew annuities and declare that no one should ever buy one.

    As I mentioned in previous columns, most people prefer a sure thing to a maybe. Once they understand how something works, and believe it will help meet their objectives, those same people usually choose simplicity and guarantees, and are better prepared to face the uncertainties of the world in which we live.

    What are these uncertainties?

    For one, prolonged low interest rates are likely to continue long into the future. The equity markets are overdue for a correction and investment returns are predicted to be lower in the future than in previous decades. No one knows for sure; not even the highest-paid investment managers on the planet know.

    Furthermore, while none of us know how long we are going to live, there is that increasing probability many of us Baby Boomers will live to be centenarians.

    Into this uncertainty comes TontineTrust, a new Gibraltar based startup. Founder Dean McClelland begs the question, “What if there was a way to cherry pick the best of both low-cost funds and annuities and wrap them up in a package that enables you to both easily manage your income and have complete transparency over your assets and their projected performance?” This translates to no reliance on a third-party, such as an insurance company or asset manager, and their associated fees.

    It seems ironic to be talking about something that was around a hundred years before the Declaration of Independence in the same breath as Blockchain, but TontineTrust founder Dean McClelland views it as the perfect pairing: “The tontine [pronounced tawn-teen], in its heyday, was one of the most successful financial products available. At one point the United States had more than 7.5% of its total national wealth invested in tontines.

    “Their weakness, however, was their susceptibility to fraud and manipulation. Nowadays, thanks to the possibilities afforded by smart contracts, advanced biometric identification processes and distributed ledger technology known as the Blockchain, we believe the tontine can re-define itself as the perfect solution for a population that is living increasingly longer in financially uncertain times.”

    That all sounds great, but what was it about tontines that made them so successful in the past and now merits digging them out of retirement? Interestingly, over the last few years there have been increasing rumblings and publications from academics and actuaries about the benefits of Tontines, so it seems TontineTrust is not alone in appreciation of their qualities or its mission to see them make their return.

    In fact, pension-like tontines exhibit many of the characteristics of annuities. The primary difference, however, is that annuity income is guaranteed by an insurance company, which charges for this. In a tontine, the investors act like their own insurance company, sharing the risk among themselves, saving thousands in annual costs, and allowing the capital to be invested in a sensible spread of investments which have a much better chance of beating inflation.

    Over the years, as members of the tontine die off, their share is distributed among the other members in the form of mortality credits. This means that the longer a member lives, the more monthly income they will receive. Talk about a hedge against inflation!

    I, for one, am looking forward to seeing what sort of rock-solid product this Gibraltar company will be bringing to our shores next year. I will be watching closely to see if Tontines fulfill their potential to help me and my generation “Live Better, Longer”.

    About the Author

    Bill Borton, managing principal of W.R. Borton & Associates LLC, founded his firm in 2011 to ensure that his clients live better, longerHe serves high net-worth clients as their Retirement Risk Management specialist. In collaboration with their financial advisors, he designs strategies to minimize the financial risks that longevity, healthcare and long-term care pose to their retirement.

     

    Originally Posted at HUFFPOST on December 18, 2017 by William Borton.

    Categories: Industry Articles
    currency