X-Message-Number: 11261
Date: Fri, 12 Feb 1999 10:52:51 +0100
From:  (John de Rivaz)
Subject: Re: Location temptation

In article: <> "Thomas Nord" 
<> writes:
> Funds better be spread anyway.

This is certainly true, but many people in cryonics are not that rich, by 
developed country standards anyway. Probably their biggest asset *is* their 
suspension fund. Most are via life insurance, so there are several variables 
that could lead to problems - poor mangement, excessive cream off of fees, 
failure of management, failure of investments chosen.

Note that (as I understand it) if the life company goes bust the life funds 
are separate entities and the policy owners need not lose them. However 
during the period of litigation surrounding the bankruptcy they may well go 
unmanaged for several years, and claims settlements may get delayed.

The other main problem is transcession. This is sort of like a recession but 
what is actually happening is that funds are being moved from traditional 
sectors that make up market indices into new emerging sectors. Now life 
companies have to be very conservative in their choice of investments, and 
the chances are that when transcessions strike they will be on the wrong 
side of the fence.

Ideally, cryonicists ought to have several different methods of funding, so 
that if one fails another still works. But the largest cryonics organisation 
in terms of membership by far is Alcor and its fees are such that 
diversification is impossible for the average member.

My oft repeated suggestion of combined term insurance and savings into 
equities could solve this problem. Once the individual is sufficiently 
advanced in the saving part to have his own portfolio of stocks, 
diversification in terms of investing in different companies is possible.

-- 
Sincerely,     * Longevity Report:  http://www.longevb.demon.co.uk/lr.htm
John de Rivaz  * Fractal Report:    http://www.longevb.demon.co.uk/fr.htm
**************** Homepage:http://ourworld.compuserve.com/homepages/JohndeR
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