DCF Income Payments, in a nutshell, offer the highest fixed income, period certain income available anywhere.
DCF Income Payments are discounted receivables. They are nothing more than fixed payments tomorrow, available at a discount today.
These are not what you normally associate with annuities. Most annuities are complicated contracts with riders, contractual terms, guaranteed rates, variable indexes, and a host of other complex terms.
DCF Income Payments are, by comparison, a really simple transaction.
$1000 per month for 20 years costs $173,486 today.
That’s all there is to it. It’s a definite, fixed payment stream with definite dates of payment. To calculate the purchase price, we apply a discount rate to those payments, and the result is the purchase price today.
The real value comes however when you compare this to period certain annuities, like a 20-year SPIA.
If your client is looking for $1000 per month, they will find that the exact same 20-year guaranteed income stream would cost $193,930 based on today’s rates if they bought a SPIA.
But we can save your clients over 10.54% for the exact same income, and often from a higher quality credit carrier… (See the detailed illustration here)
This is not too good to be true, and it may not last forever, but it is here now. And it’s up to you to set your clients up with this opportunity right now!
Now, these payments are not for everyone. If your client is specifically looking for lifetime income, they must pay some premium for the insurance carrier to pick up their longevity risk. DCF Income Payments will not pay for a lifetime. They are period certain payments only….
But for many people, the idea of forfeiting their hard-earned money to an insurance company if they ‘die early’ is just out of the question.
For those people, DCF Income Payments (also known as secondary market annuities) are perfect. No one takes your money away from you. These are secured, fixed payments, and pay to you, or your heirs, or your children, or whoever you specify.
With DCF Income Payments, there’s a lot of possibilities!
I hope your mind is spinning with the possibilities… Just think of the wealthy clients you have who might want to leave an inheritance to their grandchildren…
Think of the institutions you have who need a stable yield for their portfolio…
Think way outside the box, of your homeowners’ association who needs to replace a roof in 25 years and needs a return on investment for that capital replacement in the future…
Think of the young doctor who is risk averse, who just wants a solid yield on his savings in his IRA with no management fees…
We just gave you a teaser of our case studies that will come in another post. We have sold DCF Income Payments to all of these kinds of buyers, and many more.
In the next few posts, we will give you many more ideas and examples, so stay tuned.
Give us a call with any questions, client scenarios, or ideas and we will get you pointed in the right direction.