Submitted by flabberghaster in just_post
Comments
flabberghaster OP wrote
An investment that pays off when all but the last member.... have DIED!!!
A classic investment that's been illegal for decades but is a very common trope in books and media for obvious reasons.
nomorepie wrote
They're still legal in EU..
twovests wrote
woah!! that's cool actually. yeah let's do it
cute_spider wrote
okay but we have to REALLY EMPHASIZE this rule:
no murder until we're down to the last three
nomorepie wrote
"In French-speaking cultures, particularly in developing countries, the meaning of the term "tontine" has broadened to encompass a wider range of semi-formal group savings and microcredit schemes. The crucial difference between these and tontines in the traditional sense is that benefits do not depend on the deaths of other members.
As a type of rotating savings and credit association (ROSCA), tontines are well established as a savings instrument in central Africa, and in this case function as savings clubs in which each member makes regular payments and is lent the kitty in turn. They are wound up after each cycle of loans. In West Africa, "tontines" – often consisting of mainly women – are an example of economic, social and cultural solidarity."
I copied this off wiki, I understood it to be a more informal "mutual aid scheme" but idk where I heard about them first
rain wrote
in this case function as savings clubs in which each member makes regular payments and is lent the kitty in turn.
I think things like this are an awesome alternative to traditional banking. They just aren’t what I think of when I see the word “tontine.” But if this is the type of tontine we are talking about I’d at least be interested. I’m all for trying to find ways to escape the classic banking system.
rain wrote
How about a reverse tontine? Every time someone dies the survivors all have to pay a bit to the deceased’s next of kin. You could even spread payments out over time to establish a fund for such payments, and let more people join over time to stabilize the fund.
I just have no idea what we would call such a scheme… :)
twovests wrote
What's a tontine?