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Does a Reverse Mortgage Belong in Your Retirement Plan?

April 8, 2021

A reverse mortgage can sound risky for some people but that is not always the case. For whom does a reverse mortgage make sense?

Dr. Jack Guttentag and his colleague Allan Redstone explained the concepts around reverse mortgages, including the reason they are stand-alone products rather than integrated with annuities and financial asset management. They also described some illustrations of how integration would work in specific cases, based on the Retirement Funds Integrator (RFI), their software program for analyzing various types of integration.

Dr. Jack Guttentag was Chief of the Domestic Research Division of the Federal Reserve Bank of New York before holding two chairs in banking at the Wharton School of the University of Pennsylvania and becoming Professor Emeritus in 1996.

At various times he served as a director of TIAA, the Federal Home Loan Bank of Pittsburgh, and First Federal Savings and Loan Association of Rochester. Shortly after selling the mortgage software firm he founded, Guttentag developed www.MortgageProfessor.com, a consumer-oriented site he currently manages. With Allan Redstone, he has recently broadened its scope to include retirement, which involves integrating reverse mortgages with annuities and financial asset management.