Page 128 - Ready Set Retire

Stephen J. Kelley

your odds go back up to close to 100%, and you don’t get the
deep discount provided by the actuarial odds.

But in order to take advantage, you have to employ a bookie
that will take the bet. Most, I believe, would not, because the
time horizon is so long. Bookies want odds they can trust that
will pay off over days, weeks, or even months, but not decades.
So you must find another source of actuarially-weighted odds.
I can think of a couple that are fairly common: Social Security
and pensions. Both are based on actuarial calculations among
large groups of people. For Social Security, it’s everyone over
eligibility age. For pensions, it’s based on everyone in the pool.
Both models calculate the premiums necessary and the payouts
available based on life expectancy. Both are managed safely by
their custodians, and both guarantee lifetime payouts. Both of
these remove the longevity risk from you, and take it not only
on themselves, but actually leverage it to maximize payouts to
the participants!

Okay, that’s great if you have Social Security and even better if
you can add a pension, but what if that simply isn’t enough?
The $50 per day mentioned above was after Social Security,
and there was no mention of a pension.

Well, what if you could find someone who would take that bet?
What if you could purchase and arrangement where you could

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