The Tontine: A 17th Century Solution to a 21st Century Problem
Category: BUSINESS
The tontine is an investment scheme where each of a group of participants pays a specified sum into a fund and receives a pro rata share of the income generated by the fund, but when a participant dies their share is divided among those remaining. As the number of participants dwindles, those remaining receive increasingly large distributions.
By Jack M. Guttentag, ContributorProfessor of Finance Emeritus at the Wharton School of the Uni..., 2015-07-25