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Created in 17th-century France, the tontine is part investment pool, part annuity and part motive for murder.
FORBES: Here's an investment vehicle you could kill for.
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To start, anything with the word "tontine" in it has much emotional and legal baggage to overcome.
WSJ: For Financial Security, Look to the Renaissance
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Payments vary according to the mortality experience of a pool of buyers who join the tontine together.
FORBES: Here's an investment vehicle you could kill for.
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Second, you can overlay a tontine structure on any income-producing asset, including stocks paying high dividends or real estate.
WSJ: For Financial Security, Look to the Renaissance
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And he argues that tontine payouts would be higher than those from normal annuities because the insurance company middleman is cut out.
FORBES: Here's an investment vehicle you could kill for.
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Goldsticker says his tontine annuity snuffs out the murder motive by using a large employee pool and paying out both interest and principal, so the last one alive doesn't get a huge windfall.
FORBES: Here's an investment vehicle you could kill for.
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But now Mellon Financial has taken a step toward getting a patent on a "hybrid tontine" aimed at the legion of 401(k) savers who don't have traditional pensions giving them fixed monthly stipends.
FORBES: Here's an investment vehicle you could kill for.
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First, by transparently sharing payments among survivors and not allowing shares to be bequeathed to beneficiaries and loved ones a tontine ensures that the income going to members will always be higher, conditional on survival.
WSJ: For Financial Security, Look to the Renaissance
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In its Victorian incarnation, a tontine was an investment pool to which a group of speculators contributed capital, the principal and interest to be distributed in a lump sum years later to the last survivor.
FORBES: A 10% Annual Payout For Retirees
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Then consider investing in a tontine.
FORBES: A 10% Annual Payout For Retirees
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But now Mellon Financial (nyse: MEL - news - people ) has taken a step toward getting a patent on a "hybrid tontine" aimed at the legion of 401(k) savers who don't have traditional pensions giving them fixed monthly stipends.
FORBES: Here's an investment vehicle you could kill for.