I recently received a good question about Southern Cryonics investor membership and thought I would post it here.\u00a0 I have edited a little for readability.\u00a0 It may be something others are asking.<\/p>\n
Question:<\/strong><\/p>\n I note that you are looking for further \u201cinvestors\u201d. I am in a position to contribute $50K but would need to feel pretty secure before committing the funds. Does the $50K also include transport and standby?<\/em><\/p>\n If you are able, please provide as much information as possible and any legal documents that I may need to complete. As you advised earlier the cost of building the facility was underestimated. What guarantees can you give that the facility will be built this time round? If it isn\u2019t is the money returned? Can you also discuss how Southern Cryonics will ensure its longevity. Many businesses falter after years or decades so this is another concern.<\/em><\/p>\n I replied:<\/strong><\/p>\n Thanks for your note.\u00a0\u00a0Yes, we are still looking for investors.\u00a0 We\u00a0are tackling the project very prudently and want to be as sure as we can of its success.\u00a0 I may have written previously that my background is in long term planning, strategic planning, financial planning and major project “hands on” implementation.<\/p>\n Let me try to answer your questions and , as I hope I always am, be very straightforward.<\/p>\n Firstly, let me say\u00a0there are no guarantees.\u00a0 \u00a0 As I have informed all our investors this is similar to a business venture.\u00a0 There is always some risk.\u00a0 You will need to measure the risk versus the benefits.\u00a0 I have my own money involved and feel very responsible to the investors so I am trying to minimise the risk, but it cannot be eliminated.<\/p>\n The $50,000\u00a0does not<\/u>\u00a0include standby and transport.\u00a0 If you are in NSW this will be about $10,000 (in today’s dollars).\u00a0 Add shipping by plane (and possible travel for those doing the standby)\u00a0as you go further afield in Australia.<\/p>\n There are not really any legal documents except for simple\u00a0application for membership.\u00a0 I will include a copy of our constitution because the application says that you will adhere to that.\u00a0 You would be a member of a non profit organisation.\u00a0 Legally it is a public company limited by guarantee.\u00a0 Basically this means that there is no monetary return on your investment.\u00a0 \u00a0Also any invested funds cannot be returned.\u00a0 Of the commitment of $50,000 all investors have put in $13,000 so far.\u00a0 As you can see we are calling up the funds as we need them.\u00a0 The reason is what I mentioned before.\u00a0 That once in, funds cannot be returned.\u00a0 All this is in the constitution.<\/p>\n I can’t give any guarantees about when\u00a0the facility will be built.\u00a0 Because of many other factors (government requirements, timing in trying to find suitable land, priorities etc) we have been delayed and costs are higher, but I am not going to now “knee jerk” and proceed unless I am reasonably confident of viability.\u00a0 I have a lot of experience in much larger projects than this and you can rush things now\u00a0only to have major problems 5 to 10\u00a0years down the road.\u00a0 I have some detailed modelling of our long term\u00a0chances of success and will be only going forward when I feel convinced we are really ready.\u00a0 No one call tell what will happen in the future, but I am trying to minimise our downside risk over the longer term.<\/p>\n In investing in Southern Cryonics (SC), you will need to balance the risk versus the benefit.\u00a0 The same as others have done.\u00a0 Let me give you some\u00a0information which may help.<\/p>\n I am not sure of your age.\u00a0 Say you are 40 and that you do not need to be suspended for another 50 years.\u00a0 The following examples are simplified broad numbers, but they will give you an idea of options.<\/p>\n If you go with the investment in SC of $50,000, in 50 years\u00a0you pay nothing more\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 $50,000<\/p>\n plus say $15,000 for standby\/transportation\u00a0with inflation\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0i.e. about $65,000<\/p>\n TOTAL COST\u00a0 IN 50 YEARS\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0$115,000<\/strong><\/p>\n If you go with life insurance<\/strong> you will need to be insured for about:<\/p>\n $100,000 proposed current Southern Cryonics fee\u00a0plus inflation\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0\u00a0 \u00a0 \u00a0 \u00a0 $438,000<\/p>\n Standby and transportation in 50 years\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 $65,000<\/p>\n TOTAL AMOUNT OF LIFE INSURANCE NEEDED\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0about $500,000<\/strong><\/p>\n To get this level of\u00a0life insurance will cost you an average of about $5000 to $6000 per year<\/strong>.\u00a0 I know it appears high, but it will be something like $600 a year now (if you are about 40), but wait until you are above 65 years old.\u00a0 It will escalate very\u00a0quickly.\u00a0 The $5,000 to $6,000 is if you want to lock in “whole of life” insurance at a fixed rate.\u00a0 These are only my estimates.\u00a0 A proper insurance broker will need to give you the real quotes.<\/p>\n If you cannot get life insurance, you will need to raise the $500,000 in 50 years time.\u00a0 If you currently have $50,000 and can get about 5% return after tax over the 50 years,\u00a0that will give you the $500,000 you need.\u00a0 In a sense the $50,000 now is equivalent to the $500,000 in the future.<\/p>\n Of course if you needed to be suspended about 5 to 10\u00a0 years after the facility\u00a0is built, and were not an investor,\u00a0 you would need about $120,000 to $140,000.\u00a0 \u00a0If you only have $50,000 now and no life insurance you will not have the funds.<\/p>\n The $50,000 is like a prepaid insurance policy.\u00a0 It covers you at any time after the facility is operational<\/strong>.<\/p>\n Hope that helps.<\/p>\n","protected":false},"excerpt":{"rendered":" I recently received a good question about Southern Cryonics investor membership and thought I would post it here.\u00a0 I have edited a little for readability.\u00a0 It may be something others are asking. Question: I note that you are looking for … Continue reading