CLICK HERE for a printable PDF of today’s inventory, and remember, we can split cases to suit your needs- Call for Details!
Payments marked as Exclusive are only available to our subscribers. Are you a Financial Advisor? Visit DCFExchange.com for appointment information.
- Load an available cash flow by selecting the case code from the drop-down menu & click Solve.
- To solve for price based on a rate, enter your desired Interest Rate, & click Solve.
- To solve for rate based on a price, enter “Unknown” in the Interest Rate field, then enter your desired price in the Amount field, & click Solve.
- Click ‘Download’ to see amortization, reservation and illustration documents at your custom price or rate.
Understand Rates on DCF Income Payments
A DCF Income Payment investment price is the Present Value cost of the specific Future Value payments shown, at the Discount Rate shown, and Priced On the date shown.
The Basics of Time Value of Money
The basic premise is that a dollar you invest today will pay more than a dollar tomorrow. How much more? Well that depends on the rate or return, or the discount rate, of your invested dollar. Thus, there are three key terms to understand the concept of “Time Value of Money” and of discounted cash flow (DCF) math.
Future Value- FV is one or more payments, at specific dates in the future. With DCF Income Payments, it’s the specific payment description, for example, “120 monthly payments of $1000 starting on 1/1/2020 until 12/1/2029” or “One lump sum of $100,000 on 12/1/2030” This is the Future Value(s) you receive
Discount Rate- this is the rate at which a Future Value decays, or is discounted. In the most basic sense, $100 one year from now is worth $95 today, at a 5% discount rate. For our purposes with DCF Income Payments, the Discount Rate, is the same as the Effective Rate, and is also the same as the Internal Rate of Return, or the Annual Percentage Yield. This rate is clearly shown on the inventory page.
Present Value- PV is the value today (or on a specific date) of the specific Future Value(s) of the payment stream, discounted to that purchase date at the Discount Rate shown. In our case, Present Value is also the Purchase Price or investment cost, and the day we use to calculate that PV is the ‘Priced On’ date shown on the inventory.
Every Future Value needs to be discounted using the Discount Rate, back to today, using the compounding period specified, to arrive at today’s Present Value for that specific payment.
Thus, every piece of information you need to verify the mathematics is shown on our inventory page, and so…
A DCF Income Payment investment price is the Present Value cost of the specific Future Value payments shown, at the Discount Rate shown, and Priced On the date shown.
There’s no mystery to it at all, but unfortunately, people accustomed to complex annuities with hidden fees and charges just don’t believe that what you see is, in fact, what you get.
All this can be verified using a good discounted cash flow annuity calculator. Use ours above, or use T-Val, or use MS Excel and the XIRR or XNPV functions.
Click for Video
Summary of DCF Income Payments:
- DCF Income Payments are existing and in-force payment streams backed by annuities, available at a discounted price & higher yield than comparable fixed term annuities.
- Purchasers acquire the right to receive these future payments in a court ordered and state- regulated transfer procedure.
- DCF payments offer a higher yield and lower price because sellers need cash today, and they sell their rights to future payments at a discount.
- Fixed Term DCF payments will pay exactly as scheduled to the purchaser or their heirs. Insured DCF Income Payments offer a fixed yield but may pay out earlier than expected via life insurance on the seller.
- DCF payments have no volatility, no market exposure, no fluctuation in value, and no complicated terms or contracts.
How To Choose:
- In Stock cases are fully approved, ready for immediate resale
- In Review cases are court approved and in DCF’s legal review process. Buyers can expect to close within 1-2 weeks
- In Pipeline cases are in an earlier stage of the transfer approval process. Buyers can expect to close in 15 to 45 days.
- Insured cases are insured with life insurance. If the seller dies before the end of the assigned payments, life insurance repays any principal and interest due to the purchaser under the assignment agreement as of the date of the seller’s death.
- Inventory is priced as of a projected close date- the final price will change slightly based on actual close date.
- Cash or IRA funds are accepted- Use GoldStar Trust as the self directed IRA custodian to purchase with qualified funds
- Cases can be split to suit individual needs, see “Split Cases” tab on this page and call for details.
How to Buy:
- Hold a case for 48 Hours to take it ‘Off-Market’
- Reserve a case by sending in a purchase order with purchaser details (name/address etc)
- If using qualified funds, open a Self Directed IRA with GoldStar and rollover/ transfer sufficient funds.
- Closing book is sent by Docusign for review and electronic signature. For IRA’s, the purchaser signs a Direction of Investment included in the closing book to complete the purchase.
- Closing book contains the contractual assignments from seller, to intermediary, and then to purchaser, along with the final court order, carrier stipulation agreement or acknowledgement letter, amortization schedule, and payment servicing agreement.
Closing and Funding Process:
- No pre-purchase buyer deposits are required.
- Transactions are funded only after the purchaser has received and reviewed the complete closing book.
- Once purchaser reviews and e-signs the Absolute Assignment of Cash Flow and Payment Servicing Agreement, the purchase price is sent to the dedicated escrow account, and the case is closed.
- Closings are safe, quick and efficient through the use of a dedicated, third party escrow account and electronic signatures.
Receiving Income and Cash Flows:
- Income payments are received into a payment servicing account specific to each case and under the sole control of the purchaser.
- The payment servicer is GoldStar Trust Company, a federally regulated bank and trust company based in Texas.
- GoldStar receives payment from carrier and sends payments by ACH or check on to the purchaser, their IRA if applicable, or to their heirs or assigns.
- Payment servicing allows for easy beneficiary designation, anonymity, and transferability to purchaser’s heirs, assigns, or estate.
Heirs, Beneficiaries, and Liquidity Provisions
- The payments will pay as scheduled to the purchaser or to their heirs
- Beneficiaries may be designated directly with the Payment Servicer
- Payments may be re-assigned or sold to another buyer
- DCF may offer to re-acquire payments from Purchasers on a case by case basis and at a market price determined at the time of resale.
- There is no partial or full cash surrender schedule.
How to Choose?
Click for Video
How to Buy?
Click for Video
Top 10 FAQ
Click for Video
SPLITTING CASES
We are able to easily accommodate splits or portions of cases.
Lump Sum Splits
Lump sum cases may be split to suit the purchaser. For example, one lump sum of $250,000 on 1/1/2030 may be split for a purchaser who only wants to purchase $150,000 of that future payment. Lumps may also be split so the payout is sized to fit an available present day investment amount, such as the balance of an IRA or a specific desired purchase price.
Income Splits
Income streams may also be split or tailored to suit your clients needs. For example, 240 monthly payments of $1000 may be split into 240 payments of $500 to your customer and DCF retains and sells the remaining $500 to another customer.
We can also accommodate a split such that one of your buyers takes the first 120 payments of $1000, and another of your buyers takes the deferred 120 payments of $1000. This is especially useful where you have a client who buys a portion of a case with an IRA and buys the remainder of the same case with non qualified funds.
Please note, we would not approve a split of the first 120 payments of the example above without the back end piece being simultaneously sold, nor would we split out a portion of payments in the middle of an otherwise smooth income stream without all the other pieces being simultaneously sold.
Please call or email for approval of a proposed split prior to presenting to your customer. Closing books clearly display and reconcile all splits.
What Our Customers Ask Before Buying Wholesale Income Payments
Transferred structured settlement payments form an important part of the financial landscape. By acquiring future payments from recipients of structured settlements, we provide liquidity and options to individuals with otherwise inflexible and locked in financial arrangements. And in so doing, we provide a higher yield, high credit payment stream to buyers.
Properly structured and legally reviewed by our affiliate wholesale firm, DCF Exchange, these instruments offer a great guaranteed income alternative to today’s yield-starved investors. Advisers and individuals alike should take a close look at these high-yield, high credit quality safe-money alternative investments.
Here are a few frequently asked questions that our buyers typically ask:
What Are Wholesale Income Secondary Market Annuities?
If you’re looking for a stable investment that provides reliable returns, Wholesale Income’s secondary market annuities could be the right fit for you. But what exactly are secondary market annuities, and how do they work?
Here’s a quick breakdown:
- What Are Secondary Market Annuities?
Secondary market annuities are existing structured settlement annuity contracts that are bought and sold on the secondary market. These annuities were originally issued by insurance companies to individuals but are now being sold to investors like you at a discount. This allows you to buy in-force, guaranteed annuity backed payment streams, at a discount.
- Why Are They a Good Investment?
These annuities offer predictable, steady income payments and can be customized to fit your investment goals, whether you need consistent income or are looking to diversify your portfolio. By purchasing these payment streams, you’re buying the rights to future income payments at a discounted price.
- Security and Stability
Since these annuities are backed by strong, established insurance companies, they provide a reliable, low-risk income stream.
Wholesale Income specializes in offering these secondary market annuities, providing you with an opportunity to earn fixed, predictable returns on your investment.
To learn more about how secondary market annuities work and how they can fit into your financial plan, schedule a call or view our current inventory.
How Does Wholesale Income Work?
If you’re exploring options for higher yields without compromising safety, Wholesale Income might be the solution you’re looking for. But how exactly does it work?
Here’s how the process works:
- Get on a 1-on-1 call: We’ll discuss how Wholesale Income can work for your financial situation. During this call, we’ll help define your financial objectives, whether they are for income needs, capital appreciation, or safe growth.
- Select from our available guaranteed payment streams: Once we understand your goals, you’ll pick from the available guaranteed payment streams on our inventory page that align with your objectives. We can assist you in selecting the best fit, and we can also split, customize, or adjust the inventory to suit your needs.
- Simple purchase process: Once you’ve selected your investment, we’ll send you all the details about the secondary market annuity policy you are purchasing and set up your accounts with the payment servicing trust company. If you are using IRA dollars, we’ll help you establish your self-directed IRA and assist with fund transfers to stay compliant with the IRS.
This investment offers a balance of high yield and security, providing you with consistent returns and peace of mind.
If you’d like to explore how this can work for you, schedule a call or view our current inventory.
What does COLA Mean?
Payment Streams that have a COLA (Cost of Living Adjustment) simply have an annual increase. These are typically 3% per year, as shown on a payment stream like this:
– 360 monthly payments of $3,500.00 starting on 10/09/2026, ending on 09/09/2056 – 3.00% COLA
The first 12 payments are $3500
The next 12 payments , starting 10/9/2027, are $3605
The stream increases 3% each year until the 30th year, and the last 12 payments in this stream are $8247.98
You can see the specific payments on the payments table, available for download in the green ‘More Info” button to the right of each payment stream.
Why COLA Matters for You
If you’re concerned about future inflation eating into your purchasing power, selecting payments streams with a COLA offers peace of mind by making sure your income keeps up with the rising cost of living. This is especially important for long-term investments where income stability is a key goal.
Wholesale Income payments with a COLA can be a powerful tool to ensure that your income stream remains valuable over time. You can see the details of the COLA on every payment stream by clicking the green ‘More Info’ button and then downloading the payments table.
What is the Minimum To Get Started?
If you’re considering investing with Wholesale Income, you might be wondering how much you need to get started. The good news is that the minimum investment is low, making it easy to take that first step toward securing your financial future.
Here’s what you need to know:
- Minimum Investment
The minimum investment amount varies depending on the available payment streams and the type of investment you choose. Typically, the minimum investment for a lump sum is $10,000. For income streams, typically it’s $500/ month as a minimum size to make it financially cost effective for you to purchase. - Flexible Investment Options
By splitting payment streams to suit your investment, we help you allocate your budget to suit your financial goals. Whether you’re looking for immediate income or a longer-term lump sum solution, there are options available at different price points. - Why the Minimum Investment Matters
The minimum investment ensures that you can access a guaranteed payment stream that meets your financial needs. It’s a great way to start building predictable, reliable income with a manageable upfront investment.
Investing in Wholesale Income doesn’t require a huge commitment upfront, and with the ability to choose from a wide range of payment streams, you can start at a level that fits your financial situation.
Ready to get started? Schedule a call or view our current inventory.
Can I Use IRA Dollars for Wholesale Income?
Wholesale Income Payment purchases can be arranged through a self-directed IRA custodian who is familiar with the asset class. There are special calculations to be done to account for required minimum distributions or RMD’s so it’s best to work with a custodian already familiar with the market.
It’s important to note that while Wholesale Income Payments have no fees or costs other than the purchase price and a nominal payment servicing charge, IRA custodians do have some costs. We refer all customers to GoldStar Trust for self-directed IRA purchases. See This Page for more info.
If you have a self-directed IRA and are looking for a way to invest in something stable and predictable, you may be wondering, “Can I use my IRA dollars for Wholesale Income?”
The good news is that you can!
Here’s how it works:
- Self-Directed IRA
A self-directed IRA allows you to make your own investment choices, including safe, fixed-income options like Wholesale Income. This gives you more control over your retirement funds while staying compliant with IRS rules. - Tax Benefits
By using IRA dollars, you can benefit from tax-deferred growth, meaning your investments can grow without immediate tax consequences. This allows you to maximize your retirement savings. - How We Help
If you choose to use IRA dollars, we’ll help you set up your self-directed IRA and guide you through the process. We’ll also assist with fund transfers to ensure everything stays in compliance with the IRS. - Tax-Deferred Growth of Income Streams
Even if the Wholesale Income payments you buy in your IRA produce regular monthly income, your IRA stays tax-deferred until you take a distribution. This means you can buy income streams that pay in and let them build up and accumulate for future reinvestment—tax-deferred.
For more information and a video walkthrough on how to invest with your IRA, click here.
Investing in Wholesale Income through your IRA could provide you with a secure, predictable income stream in retirement, and we’re here to make the process as smooth as possible.
If you’re ready to discuss how this could work for you, schedule a call or view our current inventory.
Can Payments Be Split?
Wholesale Income Payments are shown on the Inventory Page in configurations of Immediate Income, Deferred Income, and Lump Sums. The price is calculated based on the benefits shown at the discount rate shown.
One of the great features of Wholesale Income is the flexibility it offers in structuring your payments. If you like a large lump sum but want just a smaller portion of it, or you see a great income stream but want it to be a smaller amount each month, then you are in luck.
Here’s how it works:
- Payment Splitting
If you’re aiming for a smaller payout from a lump sum or want a portion of an income stream, we can split the payment stream to meet your specific needs. This is ideal for those who want more control over their income distribution. - Custom Solutions
While we cannot adjust the frequency or end date of a payment stream, we can configure payments to start earlier, or carve out a portion of a monthly payment stream just for you. With lump sums and income streams, we can split, customize, or adjust the available payment streams to fit your exact investment needs. - Maximize Your Cash Flow
This flexibility allows you to have more control over your income strategy. You can tailor your payment streams to suit your financial situation and long-term objectives.
If you like a certain case but want to buy just a portion of it, most can be split to suit. For example, if you wanted 50% of this case,
Prudential Life-23.5 yrs-In Stock- CaseID: 7A240528A-2
$330,377.28 purchase price –6.200% yield –$619,362.16 Total Payout
-18 monthly payments of $2,020.12 starting on 07/15/2025, ending on 12/15/2026
-265 monthly payments of $2,200.00 starting on 01/15/2027, ending on 01/15/2049
It would look like this:
Prudential Life-23.5 yrs-In Stock- CaseID: 7A240528A-3
$165,189.68 purchase price –6.200% yield –$309,682.16 total payout
-18 monthly payments of $1,010.12 starting on 07/15/2025, ending on 12/15/2026
-265 monthly payments of $1,100.00 starting on 01/15/2027, ending on 01/15/2049
Lump Sum Splits
Lump sum cases may be split to suit the purchaser. For example, one lump sum of $250,000 on 1/1/2030 may be split for a purchaser who only wants to purchase $150,000 of that future payment. Lumps may also be split so the payout is sized to fit an available present day investment amount, such as the balance of an IRA or a specific desired purchase price.
We can split lump sums down to $10,000 in purchase price.
Take control of your income strategy by customizing your payments to fit your needs.
If you’d like to explore how we can customize your payments, schedule a call or view our current inventory.
How Is the Yield Calculated?
When investing in Wholesale Income, it’s important to understand how the yield (or rate of return) is calculated. The good news is, it’s a simple and transparent formula!
Here’s how we calculate your yield:
- Net Present Value (NPV)
The amount you invest is called the Net Present Value (NPV). In simple terms, we calculate the price based on the discount rate applied to the future payments to reflect what they’re worth today, using universal Discounted Cash Flow (DCF) financial mathematics. - Income Generated from Your Investment
Wholesale Income payments come from guaranteed structured settlement annuities, which issue payments exactly as shown on the inventory page. The great thing about these payments is that they’re predictable. Each payment includes both the return of your investment (the principal) and the interest earned. As time goes on, you’ll get more of your initial investment back with each payment, and less interest. - How We Calculate Your Payments
The price you pay for these payments is determined using Discounted Cash Flow (DCF) mathematics. This is basic financial math and is used in all industries, like loans, credit cards, mortgages, and bonds. Unlike other annuities with complex crediting methods and opaque rates, WholesaleIncome is refreshingly straightforward. - Yield
The yield on your investment is also known as the Discount Rate or Internal Rate of Return (IRR). In Discounted Cash Flow terms, the investment price is the Net Present Value of the specific future payments shown, at the Discount Rate shown on the inventory page. While this may not be familiar to many people, it is basic financial mathematics that anyone can do with a calculator or spreadsheet.
Wholesale Income offers a reliable and easy-to-understand way to invest, with guaranteed payments that are transparent and predictable.
If you’d like to discuss how yield works on a specific investment or need more clarity, schedule a call or view our current inventory.
How Do I Read the Inventory Page?
Navigating the inventory page is a key step in selecting the right Wholesale Income investment. Here’s a guide to help you understand how to read and make sense of the available options.
- Guaranteed Payment Streams
Each listing on the inventory page represents a guaranteed period-certain payment stream. This means the annuity provides fixed, predictable payments over a set period, ensuring income stability for you. - Payment Category
The inventory page is divided into Immediate Income, Deferred Income, and Lump Sums. You can select the category that aligns with your income needs. - Term Length
The term length of the annuity is also displayed, showing you the duration of the payment stream. You can choose a term length that fits your long-term goals. - Customizations and Flexibility
If you are aiming for a smaller payout from a lump sum, or for a portion of an income stream, we’ll work with you to adjust the available options to fit your needs. If needed, you can split, customize, or adjust the inventory to fit your exact investment needs. - Click ‘More Info’ for Additional Details
For each available payment stream, click the green ‘More Info’ button to access downloadable payment table, reservation form, and illustration documents. These tools will help you better understand the details of each payment stream.
Take a moment to browse our available options and see what fits your financial goals.
If you need help navigating the page or have questions, schedule a call or view our current inventory.
Who Is The Typical Wholesale Income Payment Buyer?
The typical Wholesale Income Payment buyer is a smart and independent minded, safe-money investor seeking an above-average yield. They want low risk and no volatility.
We like to think of Wholesale Income as ‘Annuities for Smart People.” Typically, our customers are dissatisfied with traditional annuity options like Index Annuities or SPIAS. They want safety and predictability, but many do not need lifetime income, and traditional annuity options are usually low payout with lifetime income, plus long surrender schedules, poor accumulation, complicated terms, and lengthy contracts.
Our customers like to skip that complexity and get to the point- money in, money out. What you see is what you get.
If this sounds like you, you’re in the right place.
What Are The Costs And Fees of a Wholesale Income Payment Purchase?
Unlike all other newly issued annuities, Wholesale Income Payments have no holding or administrative costs other than a nominal payment servicing fee and, if applicable, costs to your IRA custodian.
Wholesale Income Payments are a refreshing, “what you see is what you get” transaction, without complicated fees, riders, or other costs.
How Safe Are Wholesale Income Payments?
Wholesale Income payments are considered very safe investments, comparable to new issue annuities and CD’s, but they come with a higher yield. These payments are made by by highly rated life insurance companies and handled in an FDIC insured and regulated bank and escrow environment. Expert legal counsel performs due diligence on all assets. Buying a Wholesale Income payment stream is similar to many other investments where it’s wise to buy from professionals who you can trust.
In a well structured and properly documented Wholesale Income Payment transaction, there are five key items that document a case transfer and ensure legal safety of payments to you:
- Benefits letter from the issuer to the payee, which establishes that the Payee has the payments to sell.
- Court order changing the payee name to you or an entity that benefits you, such as our Business Trust.
- Acknowledgment letter or stipulation agreement after the court hearing from the Issuer naming you or an entity that benefits you as the new payee of the specific payment stream you purchased.
- Legal Review reviewing all documents, notices, filings, UCC statements, and procedures in each case and every jurisdiction the case is subject to.
- Absolute Assignment of the cash flows from our entity that purchased the payments assigning the payments to you forevermore.
Of course, this is exactly what we do at Wholesale Income. Counsel reviews each and every case.
Here’s why Wholesale Income is a secure option for your investments:
- Backed by Guaranteed Annuities
Wholesale Income payments are guaranteed structured settlement annuities, which come from top-rated insurance companies, ensuring that the payments are backed by financial institutions with solid reputations. - No Pooling or Management Fees
Unlike some investment options, Wholesale Income payments are not pooled or aggregated. They are individual, in-force payment streams transferred in final and unappealable court ordered assignments, meaning that your investment is straightforward and not subject to any management fees or unnecessary complexities. - State and Federally Regulated
All Wholesale Income payments are transferred in state regulated and IRS compliant, court ordered transfer proceedings. Each payment stream is assigned to a dedicated escrow account administer by a state and federally regulated bank and trust company. This ensures that your investment is protected and in compliance with all relevant regulations. - Transparent and Predictable
Wholesale Income’s “what you see is what you get” model gives you clarity and peace of mind. There’s no hidden risk or confusing terms—just guaranteed payments based on the structured settlement annuities you choose.
By investing in Wholesale Income, you’re choosing a stable, secure, and transparent way to generate income.
How Do Wholesale Income Payments Fit Into My Financial Plan?
Wholesale Income Payments are an excellent, high-yield alternative to other fixed income investments. In addition, they can also form a high-yield, guaranteed income source for risk-averse investors, or to fund future obligations.
Here are a few planning scenarios that illustrate the uses of these tools:
Income Now:
A couple has a wide disparity between their ages (60-year-old man, 50-year-old wife). Traditional joint life annuities will offer very low payouts for this couple.
However, Wholesale Income Payments can be used to produce income for any buyer, or buyers, and of any age. In this scenario, the couple may use Immediate Income Payments to produce Income Now for a period of years, then use other tools to protect their money and produce income later, thus earning a higher yield than any other safe money option.
Income Later:
In addition to the Income Now Immediate Income Payment, the couple may use Deferred Income Payments to produce Income Later to guarantee income for the surviving spouse to re-position in the future.
Safe Growth Options:
Investors seeking high yield alternatives to CDs, or a couple with an age discrepancy as we detailed above, may use Lump Sum Payments as a Safe Growth Option to ensure that principal is available for the future. This may be used for income, or to fund education, gift, or other goals. Investors seeking alternatives to the complicated contractual terms of variable and index annuities with income riders rejoice at the simplicity and high yield available in Wholesale Income Payments.
Wholesale Income payments can be a great addition to your retirement plan, whether you’re building for the future or securing income now. If you’re wondering how Wholesale Income fits into your retirement strategy, here’s what you need to know:
- Using Wholesale Income in a Self-Directed IRA
One of the best ways to incorporate Wholesale Income payments into your retirement plan is by purchasing them through a self-directed IRA. This allows you to benefit from tax-deferred growth on your investment, which can help your wealth grow faster, without being taxed until you take a distribution. In many situations, 401K’s and Pensions may also be rolled into Self Directed IRAs - Retirement Income Strategy
Wholesale Income payments are designed to offer reliable, predictable income streams, which makes them a great fit for a retirement portfolio. With guaranteed payments, you can know exactly how much income you’ll receive each month, giving you peace of mind during retirement. - Other Options
In addition to self-directed IRAs, Wholesale Income payments can also be bought with after tax (Non qualified) funds. If you have any questions about how to include Wholesale Income payments in your specific retirement plan, our team can guide you through the process. - Start Planning for the Future Today
By including Wholesale Income payments in your retirement plan, you’re securing a steady income stream that you can rely on throughout your retirement years. This helps you reduce the risk associated with more volatile investments, like stocks or bonds.
If you’re interested in using Wholesale Income payments in your retirement plan or want to learn more about how this works, schedule a call or view our current inventory.
What Happens When an Owner of Wholesale Income Payments Pass Away?
In the unfortunate event of the death of the owner of a Wholesale Income Payment, executors and heirs have several options.
For Payment Streams Owned by an IRA:
If the payment stream was owned by an IRA, the beneficiary designation of the IRA account will govern how the IRA ownership is transferred. The IRA is the owner of the payment stream and thus the payment stream will continue to pay into the IRA even if the IRA ownership is transferred to a beneficiary. Contact the Self Directed IRA Custodian, typically GoldStar Trust, for more information on beneficiary designation.
That said, a payment stream itself is an asset that can be sold at any time, whether it’s in an IRA or not.
For those who inherit IRAs that contain one or more payment streams, they may want to consider selling the payment streams for cash to pursue other investments, or they may seek to take the stream out of the IRA as a distribution in-kind. Either of these are viable options to comply with the 10-year required minimum distribution rules enacted in the 2020 SECURE Act.
In either a sale or a distribution in-kind, contact us or the DCF Exchange for valuation of the remaining payments and for repurchase offers for those payments.
For Payment Streams Outside of IRA:
Heirs of purchasers of non-qualified Wholesale Income Payments have options as well.
First, payment streams owned by deceased individuals can be transferred to heirs directly by communicating with the payment servicer. The disbursing department at GoldStar will require a copy of the will and death certificate in order to change ownership of the remaining payments and update the payee banking details in accordance with the terms of the will.
That said, individuals who inherit a payment stream but would instead like a lump sum payout can sell the stream back to DCF Exchange. Please contact us at any time for the valuation of the remaining payments and for repurchase offers for those payments.
Payment streams owned in a trust will continue to pay to the trust. However, after a death, a new trustee or beneficiary may wish to sell payment streams owned by the trust. This is easily accomplished, simply contact DCF exchange for valuation and repurchase offers.
Download the ‘What To Do When Wholesale Income Purchasers Die’ instructions here.
FOR ASSISTANCE, CONTACT:
DCF Exchange, LLC
Nathaniel M. Pulsifer
[email protected]
(877) 321-7927
GoldStar Trust Company
For IRAs and Payment Servicing
(800) 486-6888
What Are the Risks With Wholesale Income?
While Wholesale Income is a stable and secure investment, it’s important to understand the risks associated with any financial decision. Let’s take a look at the potential risks and how we address them:
- Carrier Risk
The primary risk with any investment is the possibility that payments may not be made as expected. However, Wholesale Income payments are backed by highly reliable and top-rated insurance companies. These payments come from guaranteed structured settlement annuities, which significantly reduce the risk of non-payment. The likelihood of non-payment is extremely low, but it’s important to understand that carrier ratings should be considered when evaluating your investment. - Inflation Risk
The payment amounts are generally fixed, but inflation could erode the purchasing power of your payments over time. Wholesale Income offers payment streams with Cost of Living Adjustments (COLA) to help keep pace with inflation. If you choose an option without COLA, your payments will not increase over time, leaving them potentially less valuable in the future. - Liquidity Risk
Since Wholesale Income investments involve fixed payment streams, they are not as liquid as traditional investments. You cannot easily sell or withdraw the funds until the payment stream reaches its designated end date. However, Wholesale Income routinely buys payments back from past clients or their heirs. Liquidity or surrender is available, however market interest rates at the time of sale will determine the value of the remaining scheduled payments. There is no partial surrender or partial liquidity formula or provision. - US Mail Risk
Wholesale Income payments come from the best of the best insurance carriers. However, these carriers typically use the US mail to send checks to the payment servicer, who then turns the payments around to you by ACH. The US mail is unfortunately not 100% reliable, and payments at times are late or lost in the mail. Our partners check each payment and perform stop and reissue services as needed, but sometimes payments are late.
Despite these risks, Wholesale Income provides a low-risk, high-reward opportunity for those looking for stable, predictable income.
If you’d like to discuss the risks in more detail or learn more about the options available, schedule a call or view our current inventory.
What About Taxes on Secondary Market Annuities?
When considering investments, taxes play a crucial role in determining overall returns. Wholesale Income offers some attractive tax benefits that you can take advantage of, depending on how you invest.
Here’s how Wholesale Income can help you with tax advantages:
- Tax-Deferred Growth with an IRA
If you invest in Wholesale Income through a self-directed IRA, your earnings grow tax-deferred. This means you won’t pay taxes on your returns until you take a distribution. This allows your investment to grow more efficiently over time, without the immediate tax burden. - Taxable Income Portion
The portion of each payment that constitutes income (as opposed to principal) is subject to tax. While carriers do not issue IRS Forms 1099 to the purchaser, the taxable income portion of each payment is the taxpayer’s responsibility. DCF Exchange calculates this portion and displays it on the Payments Schedule. you can learn more about taxes at this page about Tax Treatment Of Wholesale Income Payments - No Income Tax on the Principal
For tax purposes, only the interest portion of the payments you receive from Wholesale Income is typically taxable. The principal portion of your payment is considered a return of your investment and is not subject to income tax, which can help minimize your overall tax burden.
Tax-Advantaged Investments
Whether you’re using an IRA or other tax-advantaged account, Wholesale Income offers a straightforward way to invest with potential tax benefits. By taking advantage of tax-deferred growth and predictable income, you can make your money work harder for you.
Why Is The Yield Higher?
The yield on Wholesale Income Payments is higher simply because the seller of structured settlement payment rights is selling at a discount. These are existing, fully funded payment obligations. A buyer becomes the assignee of an existing payment stream- a note receivable bought at a discount.
Insurance companies are not issuing new contracts that these higher yields in this marketplace. Rather, sellers are willing to sell their existing payments at a discount that allows you to achieve a higher yield.
Think of it like a used car- once you drive that shiny new car off the lot and it drops in value. When you go to sell it in the private market, even with 1000 miles on it, you won’t get what you paid for it when it was brand new. You are selling at a discount, and the buyer gets a basically brand new car, at a lower price.
In summary, investors considering period certain Single Premium Immediate Annuities (SPIA’s) or using withdrawals from Fixed Annuities, Variable Annuities, or Indexed Annuities for cash flow, will find a Wholesale Income Payment a higher yield alternative.
What Are My Liquidity Options With Wholesale Income?
Life is unpredictable, and sometimes you may need access to your funds before the end of your payment stream. We understand this, which is why it’s important to know how you can manage your investment if you need liquidity.
Here’s what happens if you need to access your funds:
- Liquidity Through Repurchasing
Wholesale Income routinely buys payments back from past clients or their heirs. If you need to access funds early, we may be able to repurchase the payments you’ve invested in. However, this will depend on the market conditions and the interest rates at the time of the repurchase. - Impact of Market Interest Rates
When we repurchase payments, the market interest rates at the time of sale will determine the value of the remaining scheduled payments. The higher the market interest rates, the lower the value of the payments, and vice versa. This means the value of the payments could fluctuate based on market conditions. - No Partial Surrender
It’s important to note that there is no partial surrender or partial liquidity provision. This means you cannot access a portion of your payment stream; you would need to sell the full payment stream or leave it as-is. - Guaranteed Payment Security
While liquidity options are available, the great benefit of Wholesale Income is that you receive guaranteed, reliable income streams. If you don’t need immediate liquidity, you can rest assured that your payments will continue according to the agreed schedule.
If you have concerns about liquidity or want to explore options that suit your financial goals, schedule a call or view our current inventory
How Do I Get Started?
Getting started with Wholesale Income is simple and straightforward. If you’re ready to make an investment or just want to learn more about the process, here’s how you can begin:
- Step 1: Schedule a Call
The first step is to schedule a call with us. We’ll take the time to understand your financial goals and help you select the right payment stream that fits your needs. Whether you’re looking for immediate income or a long-term investment, we’ll guide you to the best option. - Step 2: Review Available Payment Streams
Once we understand your objectives, you can review our available guaranteed payment streams. On our inventory page, you’ll see a wide variety of options to choose from, such as period-certain payments or lump-sum payments. You can also select options with COLA (Cost of Living Adjustments) to protect against inflation. - Step 3: Choose and Confirm Your Investment
After reviewing the available payment streams, you’ll select the one that best suits your needs. If necessary, we can help split or customize the payment streams to better align with your investment goals. Once you’re ready, we’ll send you all the details about your purchase, including a payment schedule, illustrations, and other important documents. - Step 4: Complete Your Investment
Once you’ve confirmed your investment, we’ll handle all the necessary paperwork and set up your payment processing. If you’re using IRA dollars, we’ll assist you in setting up a self-directed IRA and ensure that everything is in compliance with IRS regulations. - Step 5: Start Receiving Payments
After everything is set up, you’ll start receiving payments as per your selected schedule. Whether it’s monthly, quarterly, or annually, you’ll have a steady, predictable income stream guaranteed by top-rated insurance carriers.
Investing in Wholesale Income is an easy way to secure reliable, long-term income, and we’re here to make the process as seamless as possible.
Ready to get started? Schedule a call or view our current inventory.
Can I Sell My Secondary Market Annuity Payments Later?
You might be wondering what happens if you ever decide to sell your Wholesale Income investment. The good news is that Wholesale Income provides flexible options for selling your payments, should the need arise.
Here’s how selling your investment works:
- Repurchase Option
Wholesale Income routinely buys payments back from past clients or their heirs. If you decide to sell your payment stream before it’s completed, we can assist in repurchasing the remaining payments. The repurchase process will depend on market conditions, but we work hard to ensure it’s as simple as possible for you. - Market Conditions Affect Value
When selling your payments, the current market interest rates will impact the value of your remaining scheduled payments. The higher the interest rates at the time of the sale, the lower the repurchase value. Lower rates will mean the value could be higher. It’s important to understand this dynamic when considering selling. - No Partial Sales
If you choose to sell, you would need to sell the full payment stream. Unfortunately, partial sales are not an option at this time, meaning you cannot sell only a portion of the payment stream. This ensures the transaction is straightforward and keeps things simple. - Guaranteed Payments When Holding
If you’re not ready to sell, you can continue to receive guaranteed, predictable payments until the end of your investment term. Wholesale Income is designed to provide you with reliable income streams, whether you decide to sell or not.
If you’re considering selling your investment or have questions about the process, schedule a call or view our current inventory.
SELF DIRECTED IRAS
Click for Video
To buy DCF Income Payments with qualified funds, a self-directed IRA or a checkbook level of control on your qualified funds (Solo 401K or Checkbook IRA) is required.
For self directed IRA’s, we have worked with many SDIRA custodians, however we only recommend GoldStar Trust. They offer the best service, the lowest price, and the fastest execution, and thus there is no reason to look elsewhere.
THERE ARE THREE STEPS IN A DCF INCOME PAYMENT/IRA TRANSACTION:
- Open the Gold Star IRA Account– Complete and sign the application and pay account opening fee
- Account establishment fees can be paid by credit card.
- Page 5, Account Representative Form. Please sign where indicated with DCF Exchange as an authorized party. This authorizes us to communicate with GoldStar regarding your DCF Income Payment purchase, but does not grant any investment direction permissions. You may also specify additional advisors on page 7.
- Fund the Gold Star IRA- Page 6, IRA Transfer/Rollover Request
- Depending on the current custodian and the investments held, transfer may take 2 days or 4 weeks.
- Typically, we wait until the DCF Payment is court approved, then initiate transfer of funds to Gold Star.
- Buy the DCF Income Payment-
- The DCF Income Payment closing book will be emailed via DocuSign with a Direction of Investment form included and ready for purchaser signature
- Once the DOI is signed, Gold Star signs the Absolute Assignment and the Servicing Agreement as custodian, and funds the purchase of the DCF Income Payment
- Closed/Funded/Complete
Here are the detailed instructions for opening a GoldStar IRA:
Page 2 is the Account Application and Patriot Act info. On part 3, select the IRA type (Roth or Traditional) and input drivers license details in part 4. Please be sure to get a scan of the driver’s license or other ID, as requested in part 4.
Page 3 Account Funding, please select the appropriate box, typically a Direct Transfer from another IRA. Get a spousal consent signature if applicable.
Page 4, Beneficiary Designation, name your beneficiaries and sign as needed.
Page 5, please sign on the bottom for DCF to be authorized as the Account Rep. This allows us to communicate with GoldStar and assist with the account setup.
Page 6 is an interested party form- This is used for agents and advisors who would need view- only access to the account. Please ensure this page is signed if it is applicable.
Page 7-8 is an IRA rollover self-certification. Use only if needed, see instructions on that page.
On Page 9, Transfer/ rollover Request, input your info in the top section, and your current custodian’s information with a copy of a recent statement, and the type of plan. In asset liquidation and instructions, most people input partial or a complete transfer and cash as the asset description. If this is a partial transfer, you should specify an amount somewhat more than the estimated purchase price of the case to account for any delays in funding, and check ‘transfer by wire’ and sign where indicated. Please ensure this page is signed.
Page 11 outlines GoldStar’s fee structure. The account holder will need to be able to receive a call from GoldStar to confirm their info – a Patriot Act compliance issue. GoldStar will also need a credit card for setup and annual fee payment.
When the forms are complete, you can scan/ email directly to GoldStar using their [email protected] email address, or you can fax or mail it in to them.
Taxation Information
The following is general information and should not be considered tax advice. Please consult your own tax professionals. Click Here to Download this info.
Structured settlement payments are typically tax free payments for the original annuitant, per 26 U.S. Code § 104, and carriers do not issue IRS Form 1099. But just because there is no 1099 does not mean that these assigned structured settlement payments (DCF Income Payments) are tax-free. Income received that is in excess of the purchase price is subject to tax for the purchaser of a payment stream.
The income is typically considered ‘ordinary’ and recognized for tax purposes only when it is received, leaving unrealized income to defer, accrue, and compound. The portion of a payment that is reportable as income (and not principal) is ultimately determined by the taxpayer, but below are three methodologies you and your tax advisor may discuss.
Payment Table Methodology:
DCF Exchange obtained guidance from a well-recognized nationwide accounting firm, which we make available to our clients. This guidance states that the income portion of a payment is (1) the amount received minus (2) the price of purchase for that payment. That allows for substantial deferral as early payments have proportionally less taxable income, and later payments have more. This is shown on the Payments Table in the closing book.
The ‘Payments Table’ treats each individual payment in a series of payments as its own discounted cash flow event.
For example, using 100 monthly payments of $1000 starting in 1 month, the first payment will have very little interest and almost all principal. It requires $995.10 today to grow to $1000 in 1 month at a 6% annual rate. Because it only had 1 month to accrue and grow, you only recognize that $4.90 as interest income on that first payment. The second monthly payment will have a little more interest, and so on. By the end, the 100th payment has had 100 months to grow. It requires $615.34 today to grow to $1000 in 100 months at 6%, and therefore the last payment of $1000 has $384.66 of interest.
In sum, the ‘payments table’ is an approach that allows you to defer the recognition of income until later years.
Exclusion Ratio Methodology:
Some purchasers choose to compute taxes based on an “exclusion ratio” applied to the whole payment stream so as to obtain a consistent ratio of income vs. principal across all payments. This ratio is also shown on the Payments Table and while DCF has not obtained tax advice regarding this method, your tax advisors may choose to utilize this approach.
For example, a single lump sum that costs $50,000 and pays out $100K has a 50% exclusion ratio. Half of the payment, when received, would be taxable income. Likewise, 100 monthly payments of $1000 that costs $50,000, also has a 50% exclusion ratio. Half of each monthly payment would be recognized as interest when it is received.
Amortization Schedule Methodology:
The amortization schedule is a traditional method of allocating principal and interest in a loan or a stream of payments, that results in recognizing more interest in the early years of a payment stream.
By its nature, an amortization schedule reflects the accrual of interest on the entire investment at every compounding period. At the end of that compounding period, the schedule ‘posts’ accrued interest to principal, whereupon the now-larger amount of principal accrues in the next compounding period. DCF Payments are typically computed using monthly compounding and the amortization schedule can be downloaded from our calculator, but calculating Internal Rate of Return (XIRR) in MS Excel, for example, uses a daily compounding method by default.
In an amortization schedule, payments early on in the schedule contain large amounts of interest and relatively small amounts of principal. You see this most commonly in a mortgage- when you borrow to buy a house, your early years of the mortgage pay down principal very slowly.
Following the amortization schedule, you will recognize more taxable income early on in a payment stream, and less interest in later years.
Taxation Information Summary:
It’s important to note that in all three methods, the exact same amount of interest is recognized- they just vary as to when you recognize it. Different clients use different approaches, and we typically include the payments table in the closing book.
Please note, if a DCF Income Payment is owned by your IRA then the tax treatment above does not apply, as IRA distributions trigger taxes for IRA holders, not the income from IRA owned assets.
Again, DCF Exchange, LLC does not offer tax advice, and this page is for general information only, so please be sure to consult your own tax adviser for more information.
Downloads, Handouts & Flyers
These Handouts and Flyers Help Illustrate The Wholesale Income Opportunity
What It Is in 3 Minutes or Less
Click for Video
What It Is: The 3 Minute Summary
Are you approaching retirement or already there? If the idea of guaranteed income arriving like clockwork—what I like to call “mailbox money”—sounds appealing, but you hate the idea of complex annuities loaded with riders, fees, and subpar returns, then I have something unique for you.
In a hidden corner of the financial world, there’s a small but powerful marketplace that I call Wholesale Income. This is where payment streams from top-rated insurance companies like MetLife, Berkshire Hathaway, Prudential, and others—only the best of the best—are available at wholesale prices.
Here’s how it works:
There’s a segment of the insurance world called structured settlement annuities, where these top-rated companies make settlement payments to individuals as compensation for personal injuries. Like I said a second ago, these payment streams are rock-solid and backed by the most trusted names in the industry.
But sometimes, life happens, and people need cash now instead of waiting for the future payments from their structured settlement. Because of strict IRS laws, these people can’t simply cash in their settlement annuity payment streams. However, they can sell their rights to these payments—following structured settlement transfer laws in every state that must be approved by a court to comply with IRS guidelines.
This creates a unique opportunity in a niche marketplace. It’s small—less than a billion dollars a year—but it’s been around for decades. While Wall Street sharks scoop up most of the inventory, there’s still room for individual investors like you to benefit.
Intro To Wholesale Income
Why Wholesale Income Is Better
How To Use Wholesale Income
How To Choose Payments
The Purchase Process
