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.
Download a PDF copy of Top 10 FAQs- Advisors Quick Start Guide to DCF Income Payments
Frequently Asked Questions from DCF Advisors
1) What are DCF Exchange ‘DCF Income Payments’?
- DCF Income Payments are existing and in-force payment streams backed by annuities, sometimes referred to as ‘Secondary Market Annuities’, ‘In-force Annuities’ or ‘Discounted Annuities.’
- DCF acquires the right to receive these future payments in a court ordered assignment process. After DCF buys each payment stream, they are made available to advisors and their clients.
- DCF Income Payments carry a higher yield and lower price. Sellers need cash today, and they sell future payments at a discount. (DCF = Discounted Cash Flow)
- DCF Exchange offers payments from fixed and period certain annuities that will pay exactly as scheduled to the purchaser or their heirs, as well as Insured payments.
- Insured payments are life contingent streams hedged to insure the Investor’s yield. If the seller dies, the payment stream stops and life insurance repays accrued interest and principal.
2) Where do I see the inventory?
- Visit DCFExchange.com/current-inventory or view in the regular emails
- To view the inventory at our ‘Regular’ commission level and make commission visible, log on to your account.
3) What are my commissions with DCF Income Payments?
- Commission is included in the price shown with each case on the website and in inventory emails and is visible to logged in users.
- Commission is paid by ACH at closing, logged in users can see all the commission information DCFExchange.com/commissions/ and download 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.
- Insured cases are life contingent payments hedged with life insurance.
- Inventory is priced as of a projected close date- the final price will change slightly based on actual close date.
- Cash or IRA funds accepted. GoldStar Trust is the self directed IRA custodian to purchase with qualified funds.
- Cases can be split to suit your needs.
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 ‘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.
- Please include client’s bank info for ACH/ direct deposit.
- No reservation fee 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.