I am looking for a financial product like reverse mortgage that guarantees a monthly return and takes over the principal when I die but without the fees and the overhead of a reverse mortgage.

Let's assume I invest 100k in financial product X. It should give me 5% + inflation rate

In return for the guarantee, when I die the 100k goes to the financial company.

  • 2
    Have you bumped in to annuities in your searching? – quid Sep 21 '19 at 22:28
  • No. I have no idea about annuities can you plz send me a reference link? Most annuities guarantees a return but I believe since they return the principal when I die the returns are meager. – resultsway Sep 21 '19 at 22:32
  • It sounds like a loan. In your scenario, where does the $100k come from - yourself or the investment company? If from the investment company, how are they compensated? (I doubt they’d forego the investment income just so they can get the principal back some day.) – Lawrence Sep 22 '19 at 0:07
  • 1
    (1) An annuity would be a possibility but in most cases, you're not going to escape the high fees. Vanguard and others have some lower fee annuities. You can somewhat duplicate some Structured Index Products with options (and without the fees) but that's more of a growth concept than 5+ pct income. (2) You could consider investment grade preferred stocks which currently pay over 5%, particularly flixed/floating issues which are tied to LIBOR. Value would fluctuate with interest rates but you'd get par back if/when called. Hard to guess at what might be suitable. – Bob Baerker 9 – Bob Baerker Sep 22 '19 at 0:26
  • @resultsway: How can they possibly return the principal to you when you die? Most annuities do not, though it's fairly common to have joint annuities for e.g. a married couple that pay off until both annuitants die. – jamesqf Sep 22 '19 at 4:01

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