X-Message-Number: 6046
Date:  Tue, 09 Apr 96 12:46:25 
From: Steve Bridge <>
Subject: SCI.CRYONICS Patient Care Costs and Alcor Investments

To CryoNet and sci.cryonics
>From Steve Bridge
April 9, 1996

In reply to:

Message #6045
Newsgroups: sci.cryonics
From:  (Brad Templeton)
Subject: How to invest for Cryonics
Date: Sun, 7 Apr 1996 10:29:19 GMT
Message-ID: <>
References: <4jq72d$> <>

Brad asks:

>>In article <>, Brian Wowk <>
>>wrote: What does it cost per day ?
>>   About $3.00 for whole bodies, $0.30 for neuros.

>That low?  $110 per year?

>This implies that a cryonics fun only needs about $2000 conservatively
>invested(*) to maintain a neuro patient.  I was given to believe that
>much more was allocated.
>Or is this just part of the cost, ie. the LN2 and not the cost of
>real estate, staff, etc.?

     I didn't see Brian's full post, but according to Alcor figures, that
sounds like the approximate cost per patient per day for *nitrogen only.*
Note that word "approximate."   A neuro tank built to hold 20 patients
(for example) will boil off the same amount of nitrogen per day whether
it holds 1 patient or 20.  The cost *per patient* will be much different
as the number of patients in the dewar changes, of course.

     Alcor's estimate for current *complete* patient care expenses (a
couple of years old, but still in the same ballpark) is about $689 per
year for neuro ($1.88 per day) and $2,465 per year for whole body ($6.75
per day).  Sorry, Brad, $2,000 is not enough to maintain a neuro at
today's economies of scale, although $5,000 might be enough within 10
years or so, if cryonics grows enough to reduce per-patient costs a lot.

     Also, remember that we want that Patient Care Fund to *grow* relative
to expenses, not just remain the same.  We want to fund reanimation
research and have enough money left over to pay for the actual reanimation
someday.  That may be very expensive or comparatively inexpensive; but we
would rather have too much money than not enough, right?

     Currently, Alcor places a minimum of $70,000 into the Patient Care
Fund for a $120,000 whole body suspension and a minimum of $17,000 for a
$50,000 neurosuspension.  Depending on various costs of the suspension,
the member's overfunding amount, and the various choices the member has
made, it could be more.

>(*)I think the Alcor investment policy, as described to me, is
>incorrectly conservative.   Centuries of history show that even with
>market crashes and the like, investing only in super-secure instruments
>like T-bills and government bonds is a money losing strategy, with the
>return often barely keeping pace with inflation, expenses and taxes.

     I agree with you, Brad.  But Alcor hasn't had such an investment
strategy for at least four years.  Whoever described that to you is way
behind the information curve.

     Alcor currently has in the neighborhood of $1,348,000 in Patient Care
Fund (PCF) assets.  None are in t-bills or government bonds.

     About $364,000 is in various mutual funds dealing in different types
of US and international stocks.  $192,000 is in a money market fund with
our broker (Jack White & Company) -- this is a higher cash position than
usual.  We just received some suspension payments and haven't reinvested
them yet.

     $507,000 was invested last year in a more conservative investment,
because of some concern about stock market fluctuations and a desire to
stabilize some income: Alcor's Patient Care Fund took over a 10% mortgage
for the limited liability company that owns the building Alcor is in.
(Alcor is also a partner in that LLC.)  This provides $50,000 per year
(for several years) in guaranteed income.  Repayment of mortgage principal
will be reinvested in mutual funds.

     The remainder of the PCF assets include ownership of the patient
dewars, part of Alcor's investment in the LLC, and a small ownership
position in Mizar Limited, the partnership which owns the cryonics
facility in England.

     We are still working on placing most of the Patient Care assets into
a trust.  The trust is actually written; but we are still negotiating with
bank trust departments on details and on which one will get the business.
Once this is complete, the specific investments on mutual funds will
change, but the strategy will remain a combination of conservative and

Stephen Bridge, President ()

Alcor Life Extension Foundation
Non-profit cryonic suspension services since 1972.
7895 E. Acoma Dr., Suite 110, Scottsdale AZ 85260-6916
Phone (602) 922-9013  (800) 367-2228   FAX (602) 922-9027
 for general requests

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