Select from our range of approved investments
Choose your own investment strategy
Our trustees are adding multiple investment options suitable for long term investors and retirees. As a result, members of a Tontine Trust can:
- Choose their preferred strategy,
- Combine elements of different strategies,
- Switch strategies up to once per month,
- Set to default and let the trustees choose for you.
Below we present an overview of some of the supported investment strategies:
FDIC insured Certificates of Deposit
For conservative investors seeking the most stable returns we support investing in a basket of CDs from various FDIC insured banks.
Benefits:
- Capital and interest are guaranteed by the FDIC,
- Currently yielding approximately {{returns-FII-USD}}%,
- FDIC coverage can be achieved up to $10m+,
- Simple to understand.
Weaknesses:
- Returns are restricted to the rates offered by banks,
- CDs are highly vulnerable to inflation,
- You must trust the government's support of the FDIC.
Target date funds, ETFs and Mutual Funds
We are in the process of adding support for a range of target date and other mutual funds.
Benefits:
- Easy access to multi-diversified portfolios,
- Choose stocks, bonds or a combination thereof,
- Select fund portfolios specialised in preferred industries,
- Choose target date funds that de-risk automatically over time.
Weaknesses:
- Bond funds perform terribly when interest rates rise,
- Equity funds can fall in value as steeply as they can rise,
- Target date funds which blend equities and bonds can also suffer surprisingly badly when market corrections occur.
₿OLD
₿OLD is a contemporary strategy that skillfully combines one of the worlds highest return assets (Bitcoin) with the most proven store of value in the world (Gold) in a ratio of roughly 25%/75%.
Benefits:
- Each of Bitcoin & Gold are great hedges against inflation
- The steadiness of Gold balances the volatility of Bitcoin
- Combined they can outperform the S&P and Nasdaq
- No additional management fees
- Fully shariah compliant
- Central banks and hedge fund legends are switching from bonds to ₿OLD.
Weaknesses:
- Bitcoin may continue to be volatile for decades to come,
- Gold trades sideways when inflation is low.
- Neither pays dividends or interest.
Bitcoin
Bitcoin as a standalone investment is the epitome of high-risk high-reward but in 2024 it won acceptance as an investable asset class both for institutions and pension funds.
Indeed many of the world largest banks are now recommending BTC heavily to clients at the same time as countries including the US are establishing Bitcoin Strategic Reserves alongside their strategic gold reserves.
Benefits:
- Bitcoin is the ultimate hedge against inflation and a collapse of the monetary system as we know it.
- With a strictly limited supply of Bitcoins, and an ever growing userbase, it seems inevitable that it will continue to rise precipitously in the long term.
- Properly secured Bitcoin is not affected by the contagion that happens if and when highly complex banks and financial institutions collapse as they did in 2008.
- Tontines solve the HODLing problem, enabling you to spend your BTC safe in the knowledge that you can expect to inherit more coins through tontine credits.
Weaknesses:
- Large short term movements in Bitcoin make for a white knuckle ride unless you are strapped in for the long term.
- No dividends or interest are paid although we are investigating safe paths via which to generate yields.
- Control of the Bitcoin source code is now largely in the hands of a single entity.