X-Message-Number: 6055
From:  (Brian Wowk)
Newsgroups: sci.cryonics
Subject: Re: How to invest for Cryonics
Date: 8 Apr 96 01:15:38 GMT
Message-ID: <>
References: <> <>

In <>  (Brad Templeton) writes:

>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.

	My numbers were "order of magnitude" figures that included LN2
costs and dewar amortization.  I did not include floor space charges
or custodial maintenance as these are strongly facility-dependent. 

	The exact figures that CryoSpan currently charges CryoCare
annually are $1500 for whole bodies, and $250 for neuros.  Theoretically
you can fit 10 neuros in the space of one whole body, so the neuro
charge should be $150.  (This 10/1 ratio assumption is used by Alcor
in costing out its care, and for simplicity I used it in my order-
of-magnitude calculation.)  CryoSpan, however, has a policy of not
stacking neuros to the full height of whole body patients.  This
builds in an extra margin of safety if excessive LN2 loss occurs.
As a result, CryoSpan cannot pack the full 10 neuros in the space
of one whole body, so their neuro charge is higher than $150.

	Both Alcor and CryoCare set long-term care funding minimums
based on a conservative assumption of 2% real annual return on investment.
Thus the *long-term care portion* of CryoCare minimums is $12,500 for
neuros and $75,000 for whole bodies.  I believe the Alcor and ACS
allocations are similar.  CI is somewhat of a maverick in this department,
as their low minimum assumes (I believe) a 7% annual real return. 

>(*)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.

	Alcor abandonned the strategy of investing exclusively in T-bills
several years ago.  They now have substantial equity exposure through
mutual funds.  However perhaps largest asset class in their PCF, it turns
out, is the building they occupy and a large mortgage on it.  (Technically 
Alcor does not own the building, but they own a controlling interest
in the company that does own the building.)  There's something to be
said for the PCF owning and controlling assets needed for patient care.
(If the world economy collapses, you'll still have the building under
your feet.)  On the other hand, overall investment flexibility is reduced. 
Only history will tell how these decisions will play out.
 Brian Wowk          CryoCare Foundation               1-800-TOP-CARE
 President           Gateway to the Future             

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