Longevity Risk

You may not know the name Longevity Risk, but you know the thing. This page only introduces the two of you formally.

Strip it to the floor and you find an old instruction: look carefully, judge slowly, act decently. The new name exists because the old instruction keeps being forgotten.

The idea is simple, and like most simple ideas it is easy to nod at and hard to use. The nod is free. The use costs attention, every day, in small change.

Consider the chit fund in a small town. It survives not on contracts but on the shame of defaulting before neighbours. Reputation is the oldest collateral in India.

Money is a good clerk and a terrible master; the arrangement is entirely up to us. Carry it lightly. Ideas, like umbrellas, are useful only when actually opened.