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How Retirees Can Avoid Running Out of Money: The Role of Longevity Annuities

Jack M. Guttentag | Posted 01.11.2016 | Money
Jack M. Guttentag

Retirees are becoming a larger part of the population while their capacity to fund retirement comfortably has been declining.

How to Select the Best Type of HECM Reverse Mortgage

Jack M. Guttentag | Posted 10.28.2015 | Business
Jack M. Guttentag

The HECM reverse mortgage is a beautifully designed financial instrument that can meet a wide variety of senior needs. Unfortunately, HECMs offer so many options that selecting the best option can be a challenge.

Introducing the Kosher HECM Reverse Mortgage

Jack M. Guttentag | Posted 09.06.2015 | Business
Jack M. Guttentag

This article summarizes the dysfunctional features of the existing non-kosher market, and describes the major features of the kosher version.

Are HECM Reverse Mortgages Overpriced?

Jack M. Guttentag | Posted 08.30.2015 | Money
Jack M. Guttentag

First, are seniors getting real value in exchange for the high fees? The answer in most cases is "no". Second, can a senior who knows the ropes avoid paying excessive fees? The answer in every case is "yes."

The Tontine: A 17th Century Solution to a 21st Century Problem

Jack M. Guttentag | Posted 07.25.2015 | Business
Jack M. Guttentag

The tontine is an investment scheme where each of a group of participants pays a specified sum into a fund and receives a pro rata share of the income generated by the fund, but when a participant dies their share is divided among those remaining. As the number of participants dwindles, those remaining receive increasingly large distributions.

A New Approach Toward Selecting a Mortgage Loan Originator

Jack M. Guttentag | Posted 02.21.2015 | Business
Jack M. Guttentag

One important reason the home loan market works so poorly is that borrowers have no reliable way to select the loan originator (LO) -- the individual who takes the borrower through the loan process.

Breaking the Logjam on HECM Reverse Mortgages (Pt. I)

Jack M. Guttentag | Posted 11.11.2014 | Fifty
Jack M. Guttentag

People reaching retirement age are living longer than ever, and retiring with less capacity to maintain their living standards. With good reason, this situation has been termed a "retirement funds crisis."

The HECM Reverse Mortgage Program Gets a Makeover

Jack M. Guttentag | Posted 11.11.2014 | Business
Jack M. Guttentag

Last month, FHA announced a series of sweeping changes in the HECM reverse mortgage program, most of which have already taken effect. The changes are a response to increasing losses suffered by FHA in connection with the extensive misuse of the program.