Any person or regulator that understands the difference between an immediate annuity (IA)(can provide a lifetime stream of income) and a deferred annuity (DA)would know that the IA is a “suitable product”. I have been selling both kinds for over thirty years and will be using the proceeds from a RM to fund a new IA for myself. My broker dealer had me sign a question on a compliance review that said “annuities” could not be bought with borrowed monies. This is wrong, and the RM and securities industries should clarify the difference between an IA and a DA.

By the way how are the “tenure Payments” guaranteed?
What if the lender defaults/goes bankrupt etc.? Also, an IA would have larger payments (subject to some taxes)and you get to pick the Ins. Co. and don’t forget the State insurance funds that back annuities up. I would love to get clarification on these issues as I am not that up to date on RM “tenure”.

Good for the State Of Oregon!!!! To ban either type of annuity is not wrong, DDuck: A line of Credit with an approximately four per cent growth on unused monies as one ages is all a Senior needs. To have an insurance Company tie up a Senior’s money , subject to premature withdrawal charges and a second sales commission, is not wise and, in my opinion, criminal. Plus, the Senior may need more than just a monthly income amount to cover home repair charges, health care costs, or some other Senior need. This Industry needs to create a National Public Relations Campaign to warn Seniors against unscrupulous reverse mortgage/annuity insurance sales thieves who prey on what may well be the Seniors last substantial asset.

Pray tell, DDuck, why if you are so proud of what you recommend for Seniors, do you hide behind an alias when you write? Frankly, subject to a review by a Relative, a Respected Friend, a Family Attorney or
a Government Social Services Professional, I don’t
care what a senior does with his/her money. As long as there is no unwarranted sales pressure and the Insurance Salesman’s commission is capped at $250.00, and the Senior has immediate and complete access to their funds without absolutely NO–repeat–NO early withdrawal fees, I truly don’t care what the Senior does of their own volition with THEIR money. However, the Senior already has a Line-Of-Credit with a growth rate of approximately four percent thru FHA’s HECM insured reverse Mortgage; Sure, the insurance annuity may pay a little higher interest but at what cost now: an obnoxiously high sales commissiion and excessive withdrawal fees. Not in the best interest of any Senior, in my opinion.

First of all I use dduck at my choice. I am a CLU, ChFC and am a Series 7 and and in the financial services industry for over 30 years. I have owned up to 6 annuities at any one time and I have never had a complaint against me. As of this writing I am only recommending a RM for myself and either tenure or an IA FOR MYSELF. I am gathering information at this point and am keeping an open mind. By the way, if an insurance professional gives good honest guidance, then he deserves what ever the commission rate is (about 4%) and I also should let you know that you can buy annuities that don’t pay a commission.
I suggest that if you knew more about annuities that you would see they are just another financial planning tool.

DDuck, All the fancy titles don’t mean a damn thing, if the Senior’s best financial interest doesn’t come first. Sorry the proceeds of a reverse mortgage should
not be put into an annuity of any kind, in my opinion. It just isn’t financially necessary or benefical. And to Mr. Dave Stormont: You are one hundred per cent correct. We all see Seniors in their 70s and higher who cannot qualify for an FHA HECM because of loan to value. Those Seniors should have been counseled about the benefits of a Reverse mortgage when applying for a new, forward home loan at
an earlier age. Don’t get me started on banks, Dave. Mortgage Brokers have to be State licensed but not Bankers–because they have a more powerful lobby in Washington, D.C!!!! FHA should require all dealing with the sale of FHA HECM products to Seniors to be licensed. Don’t tell me how honest, upright, and consumer oriented banks are: Just look at the terrible financial siuation the Country is in now–the greed of some banks is a real part of the problem.

Alas, dduck, you remind me of the fourth grader who if he couldn’t be the boss, took his ball and went home. Un-reasonable?; I suspect my reverse mortgage clients would have a different view. Almost fifty years ago The Procter and Gamble Distributing Company taught a young Salesman a wonderful and lifelong lesson: “Take
care of the Client first, Nelson, within the limits of Company policy. Then, the Client will in turn take
proper care of you and The Procter And Gamble Company.”
It works!!!!!!!

For a rough idea of a fixed annuity payout on an Immediate Annuity go to: immediateannuities.com. Or ask a CLU, ChFC or CFP (we don’t bite) or call Vanguard, TIAA or any reputable insurance company. For example, I did one for myself on a RM with a $251,960 (IBIS) (Male 70, Female 66)a month, tax free as long as you reside in the home (payments stop if you sell and the loan becomes due). The figures from the above web site was $1532/mo based on Joint and Survivor 100% including AFTER one leaves the home. Of course part of the payments ARE taxable according to an exclusion ratio so you need to factor that in. Hope this clarifies this a little. I have no ax to grind but some articles in http://www.reverse-mortgages.com seem to prefer life payouts.