Every member has different priorities. Some want larger payments sooner. Others prefer to preserve more of their trust assets to have greater purchasing power in later life.
Your Distribution Path lets you indicate how you would prefer the Trustee to balance:
- the level of payments today;
- the potential for greater longevity gains which may help protect purchasing power; and
- how much payments may adjust over time.
Your selection is a preference rather than a guarantee. The Trustee determines each payment in accordance with the Trust Agreement, taking account of the value of the trust assets, market conditions, longevity gains and the interests of the member.
Gold Extra
More spending power sooner
Gold Extra is designed for members who prefer larger distributions in the earlier years.
Payments are more sensitive to changes in the gold price. This can mean greater near-term spending power, but also greater variation and potentially less payment growth later, especially if asset appreciation is weaker than expected.
May suit members who:
- want to make greater use of their wealth sooner;
- are comfortable with more variable payments; and
- accept that preserving less today may reduce future purchasing power.
Gold Standard
A balanced path through retirement
Gold Standard is designed to balance current payments with the preservation of trust assets for later years.
Payments are less sensitive to the price of Gold, helping to smooth shorter-term changes in the gold price while still responding to longer-term asset appreciation and longevity gains.
May suit members who:
- want a balance between present and future spending;
- prefer moderate payment variability; and
- do not strongly favour either higher early payments or greater long-term purchasing power preservation.
Gold Reserve
Preserve more for later life
Gold Reserve is designed for members who prefer to preserve more of their trust assets during the earlier years.
Payments generally adjust more gradually and may be more conservative initially, leaving more assets available to attract longevity gains and support payments in later life.
May suit members who:
- place greater importance on later-life payment capacity;
- prefer greater long-term stability and ; and
- are comfortable receiving less in the earlier years in return for an increased likelihood of greater purchasing power if they live a long life.
At a glance
| Distribution Path | Gold Extra | Gold Standard | Gold Reserve |
|---|---|---|---|
| Earlier payments | Higher | Balanced | Lower |
| Payment variability | Higher | Moderate | Lower |
| Assets for later life purchasing power | Lower | Balanced | Higher |
How payments are determined
The illustrations shown on this page and on the Tontinator page are examples only. Actual trust payments are not fixed or guaranteed.
Payments are reviewed periodically and may increase or decrease according to factors including:
- the value and performance of the gold held by the trust;
- previous payments, fees and expenses;
- the member’s age and expected longevity;
- longevity gains allocated through the tontine mechanism; and
- the selected Distribution Path.
The Distribution Paths are intended to guide the pace at which trust assets may be distributed. They do not predict future gold prices, longevity gains, payment amounts or guarantee protection of purchasing power.
Important information
Each Tontine Trust Fund is an individual trust established for one member. It is not a pooled investment fund or collective investment scheme.
Selecting a Distribution Path does not eliminate the possibility of variability of payments. Trust assets are exposed to changes in the gold price and other market risks. Loss of capital is possible where the member does not start collecting payments and then live long enough to breakeven on the capital contributed.
Members should consider their objectives, expected spending needs, time horizon and personal circumstances before selecting a path. Independent financial, legal or tax advice may be appropriate.