Tontines, a Renaissance-era approach to investing for income late in life, should make a comeback, argues Moshe Milevsky, an associate professor of finance and mathematics at York University in Toronto. The strategy pools individuals' investments and returns profit to those who are still alive. Tontines can apply to any income-producing asset, Milevsky writes, and is more efficient than life annuities because it lacks costly guarantees.

Related Summaries