Whenever advisors join DCF Exchange they all run through the same 10 questions. So take 5 minutes now to read this and fast track your business with us. It will save us both time and help you offer your clients better service.
Frequently Asked Questions from DCF Advisors
1) What are DCF Exchange ‘Secondary Market Annuities’?
- Secondary Market Annuities are existing and in-force payment streams backed by annuities. Also called ‘In-force Annuities’ or ‘Discounted Annuities’
- DCF acquires the right to receive these future payments in a court-ordered assignment process, and only after DCF buys each payment in house does it then make them available to advisors and their clients.
- SMA carry a higher yield and lower price. Sellers need cash today, and they sell future payments at a discount. (DCF means Discounted Cash Flow)
- DCF Exchange only offers payments that are guaranteed, period certain, and will pay exactly as scheduled to the purchaser or their heirs.
- We do not currently sell life contingent payments, therefore all our cases have no volatility, no market exposure, no fluctuation, and no complication or variability.
2) Where do I see the inventory?
- Visit DCFExchange.com/current-inventory or view in the regular emails
- Inventory on this login- protected page is published at our ‘Regular’ commission level and the commission is visible
- DCFExchange.com/open-inventory/ is same inventory, no password, with no commissions visible
- Your username and password is included in each email we send.
3) What are my commissions with Secondary Market Annuities?
- Commission is included in the price shown with each case on the website and in inventory emails
- Commission is paid by ACH at closing, see the website at DCFExchangcom/current-inventory for W9 and ACH authorization forms.
4) How to read the inventory?
- In Stock are fully approved, ready to close
- In Review are in final legal review, and typically 5-7 days from completion
- In Pipeline are in the court approval process, and typically 30 days until closing
- 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 your needs, call for details
5) How to hold a case?
- If you like a case, call or email with the Case ID or visit DCFExchange.com/current-inventory and place the hold yourself.
- Use the 48 hrs to get client commitment
6) How to get an illustration or amortization schedule?
- Visit DCFExchange.com/current-inventory
- Click the “‘More Info” button on the case, then download an Illustration, an Amortization Schedule, or Reservation Form
- To change the date and recalculate price, select the case in the ‘Amortization Calculator’ tab, modify the date/ rate / or price to suit, click “Solve” then select “Downloads”
7) How to reserve a case?
- Submit Reservation Form with buyer’s profile information
- Include clients bank info for ACH/ direct deposit, sign & return Reservation Form
- No deposit is required, but a Reservation means the Client is committed and the case comes off the inventory list until closing.
8) How to close a transaction?
- We send a closing book via DocuSign for review and electronic signature.
- Client signs Absolute Assignment and Payment Servicing Agreement, or Direction of Investment form for IRA buyers.
- Closing book shows final purchase price and wire instructions, and contains the final court order, carrier stipulation agreement or acknowledgment letter, and additional collateral documents.
- Clients are free to hire their own counsel for further review of the collateral file
- Clients wire funds to a dedicated escrow account at GoldStar Trust Company
- Commissions are paid when docs are signed and funds are received at GoldStar
9) What about IRA purchasers?
- Open Self Directed IRA with GoldStar Trust when you reserve a case.
- Account opening forms are on the website at DCFExchange.com/current-inventory
- Commence funds transfer/rollover once case is court approved and In Review
- If In Stock, commence transfer immediately upon reservation
- Client signs Direction of Investment for, to be sent via Docusign in Closing Book
- GoldStar Trust (as IRA Custodian) finalizes the purchase, and the case is closed.
10) What about payment servicing?
- Payments are received by GoldStar Trust company and then sent by ACH or check to the end purchaser, or to their IRA account
- Payment servicing allows for confidentiality and easy transfer in the future for heirs, assigns, or beneficiaries
11) What about docs and downloads?
- Visit DCFExchange.com/current-inventory for
- Case Specific Illustration, Amortization Schedules, Reservation Forms
- Custom Pricing Calculator
- Buyers Guide, Selling Tools, One-page Guides, Whitepapers
- White-label Videos, Powerpoint slides, and presentations
- Custom PDF with your name and logo
- Live streamed inventory to your website.