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:

The typical Wholesale Income Payment buyer is a safe-money investor seeking an above-average yield, with very low risk and no volatility. Payment streams can be immediate income, short-term lump sum, long-term lump sum, or a mixture of both.

Payments can be split to suit your desired investment amount or available funds.

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.

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

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

-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:

$165,189.68purchase price –6.200%yield –$309,682.16total payout –11.8WAL

-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.

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.

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.

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:

  1. Benefits letter from the issuer to the payee, which establishes that the Payee has the payments to sell.
  2. Court order changing the payee name to you or an entity that benefits you, such as our Business Trust.
  3. 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.
  4. Legal Review reviewing all documents, notices, filings, UCC statements, and procedures in each case and every jurisdiction the case is subject to.
  5. 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.

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.

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.

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

Insurance companies are not issuing contracts that yields 6% in this marketplace. Rather, sellers are willing to sell their existing payment rights and in some cases their existing annuities at a discount that allows you to achieve a 6% yield.

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.

Reach out to us if you’d like to:

  • Schedule a 1-on-1 video call to discuss your specific needs and situation
  • Ask questions about products, carriers, or Wholesale Income Payments
  • Discuss how a Wholesale Income Payments and newly-issued annuities may (or may not) fit into your portfolio

nathaniel pulsifer of dcf annuities

Nathaniel M. Pulsifer, Owner of DCF Exchange and WholesaleIncome.com
(800) 246-1932 | [email protected] | Linkedin

SCHEDULE YOUR FREE CONSULTATION