Stock and bond traders are used to the idea of getting income from a future stream of earnings — established musicians have even sold financial instruments whose value is based on future sales of their classic hits or “back catalogue,” a product pioneered by David Bowie. So why not a “bond” based on the future earning potential of some smart young lad about to enter university? Ron Steen figures it’s about time for such a thing, so he has listed himself on eBay (hat tip to Nick Carr for the link).
What Ron is offering is the chance to bid on payments that amount to two per cent of his annual income for the rest of his life, payable by cheque once a year until he is 65. Wisely, Ron has left any potential inheritance income out of the picture, but he has agreed to pay the winning bidder two per cent of any future “windfall” income such as lottery winnings (although he warns that he doesn’t buy lottery tickets).
Ron — who describes himself as a “really good guy” with a “dynamic personality” and a “team player who is willing to learn” (he also says he has no drug or alcohol problems and his car is paid off) — says he will be entering Cal State university in the fall, and wants to pay for his tuition with the money raised by his auction. The starting bid is $100,000.
For what it’s worth, Lazymotivation.com says that Ron’s idea isn’t really that great an investment (debatable) and that Ron may or may not be lying about his SAT scores.