About CLIP

Innovating from first principles

This story starts, like most true stories, with first principles. This means breaking down complicated problems to their basic assumptions and generating original solutions from there. It was this method of reasoning that Prakash Shimpi's father instilled in him from a young age.

Always think for yourself. Ask how and why. Break down a problem into its basic assumptions that can't be reduced any further.

Building on a foundation of expertise

Prakash has long been in the vanguard of the convergence between insurance and capital markets. “A finance wizard” as The Economist succinctly put it. From 2012 to 2016, he was appointed as one of “thirty distinguished professionals in economics, finance, financial services” to advise the US Treasury on emerging risks to the financial services sector.

Throughout his career, Prakash has built new solutions from the ground up, designing methods for insurance companies to hedge product risks at Chase Bank, pioneering new ways to manage the financial cost of earthquakes and hurricanes at Swiss Re, and advising global corporations on enterprise risk management at Towers Perrin.

Indeed, Prakash has applied his ideas and expertise extensively to help large institutions manage their financial risks. All the while, however, he was acutely aware that people all over the world face the very same, if not greater, financial challenges in their everyday lives.

The challenge of financial security

CLIP came about, like so many inventions that go on to transform the way we do things, as a response to a very real-world problem.

Around the globe, people are living longer and running out of savings in their retirement. How do you guard against someone outliving their savings? What if you run out of money early in your retirement?

Over the course of many years, drawing on his background in pioneering actuarial science and finance, Prakash would go on to deconstruct and decouple the mechanics of investment and insurance products such as annuities, questioning whether they truly meet the retirement income needs of ordinary people:

• Why can I not change my mind about my retirement income needs as I near retirement?
• Why can I not create an income stream that reflects my varying needs during retirement?
• Why do I have to give up control of my savings and investment choices to buy an annuity?
• Why can’t I buy an annuity without a guarantee? What does that guarantee cost?
• Why do I have to pay a premium to an insurance company for an annuity when the return is largely my own money?

CLIP is a better way to live a long life with greater financial security

CLIP – Community Long-term Income Plan – makes innovation in retirement planning and investing available to people who could not otherwise afford such solutions.

What you receive from CLIP depends not on what you personally contribute, but on what the CLIP Community contributes together. It creates a second source of income for you during retirement, funded by the passing of other community members. In short, CLIP better enables you to support yourself for longer in retirement.

With CLIP, you always get more retirement income than without CLIP.