A TontineIRA™ is a new type of individual retirement account that combines the benefits of a tontine with a traditional IRA.
TontineIRA™ account holders receive a steady income each month for as long as they are alive and they can expect that income to rise over time thanks to the tontine effect.
Each TontineIRA™ is part of a community of same-sex same-age members that support each other in their retirements.
In practice, this means that members receive a steady monthly income from their TontineIRA™ while alive but that any remaining balances when they pass are shared among the other members of their tontine community to support their continuing spending in old age.
Since 2017 we have been developing, testing and patenting a technology platform which ensures that the income always continues for as long as the members are alive, even if hundreds of members of a tontine community live beyond 100 years old.
With a traditional IRA, you have to keep monitoring your balance, your portfolio and your life expectancy to avoid your savings running out.
A TontineIRA™ handles all of that automatically so that you only have to focus on how to spend the money.
The safe level of spending from a TontineIRA™ will always be higher than an equivalent passive income IRA.
This is because in addition to the passive income from the investments, you will also receive a portion of the income no longer being paid to the members of your tontine that have already passed away.
A TontineIRA™ can invest in the same assets as a traditional IRA as long as those assets are generally suitable for retirement plans.
For now, each TontineIRA™ will invest in FDIC insured bank certificates of deposit ('CDs'). Additional investment options will be made available soon subject to standard suitability tests for retirement savers.
Soon after joining, we will assign you to a community consisting of members of the same sex that are more or less the same age as you.
We don't mix the sexes because women live longer than men. We don't mix age groups because nobody wants to be in a tontine with people much younger than themselves.
The TontineIRA™ has the same annual contribution limits as a traditional IRA which for 2024 are:
Where the saver has already accumulated savings in an IRA, 401(k) or a 403(b), there is no limit to the amount that can be transferred from those to the TontineIRA™.
Generally 'living on a fixed income' is not a good thing in a world such as ours where inflation exists.
This is why our patented system is designed to give you a predictable income that grows over the years to offset some of the effects of inflation.
The predicted amounts will adjust gradually over time based upon changes to expected investment returns and life expectancies.