The document discusses secondary markets for structured cash flows, such as pensions, which allow individuals to sell future income streams for a lump sum payment. It provides details on Future Income Payments, LLC, a company that facilitates these transactions, including their process for underwriting sellers, mitigating risks through reserve accounts, and replacing cash flows if needed. Examples of purchase prices, terms, and monthly payments are given to illustrate potential returns from structured cash flows compared to other fixed income options like annuities.

2. Brochure Summary:
• The secondary structured cash flow market has been in existence for decades, and is a multibillion
dollar per year industry. The secondary structured cash flow market allows an individual to sell an
asset that pays over a period of time in exchange for a lump sum payment.
• Secondary market pension income streams have existed since 1994.
• Future Income Payments, LLC is a factoring company that specializes in secondary market pension
income streams. FIP’ management has been factoring pension income streams since 2010. Since
inception through 2014, FIP has funded over 1,700 sellers through 640 transactions representing
$100 million in purchase price.
• Future Income Payments, LLC have unique risks which are covered within the Future Income
Stream Purchase Agreement. One of the primary risks with a Pension Cash Flow purchase is
contractual risk: that a pension seller will breach their contract and not honor the obligation to
pass through pension income to the buyer.
• FIP offers buyers a unique model of risk mitigation which includes a proprietary underwriting
process, diversification within each purchase, short and long term reserves and seasoned
collections capabilities.
• Since inception all buyers have received 100% of contractually owed payments.
• Structured Cash Flows offer buyers competitive fixed rates with predictable income that can be
customized to their unique needs.
• Compared to traditional fixed products, which carry different risks, a Pension Cash Flow can often
provide up to 30% more monthly income.
• To learn more about the risks and protections associated with a Structured Cash Flow ask your
referring Agent or Advisor for a copy of the Future Income Payment Purchase Agreement and visit
StructuredCashFlows.com.

3. Discounted Cash Flows
The secondary market for a variety of discounted cash flows has existed for over 30 years and
represents a billion dollar a year industry. Examples include secondary market pension and lottery
payments, annuity payments and structured and lawsuit settlements. Most of these products are
purchased directly by institutions such as banks and hedge funds but have recently expanded to include
qualified individuals.
What is a structured cash flow?
A structured cash flow represents a fixed income stream such as a qualified annuity payment,
retirement benefit or pension income sold at a discount in exchange for a lump sum payment. These
future income streams can provide for higher rates of return than available through traditional fixed or
income products. Structured cash flows represent predictable income that is paid by institutions such
as the federal government, investment-grade corporations and state and local governments.

4. What are the benefits of purchasing a structured cash flow?
• Above average rates as compared to other fixed products.
• A customized income stream to meet specific living expenses and funding requirements.
• Cash flows are set at a fixed amount and for a set period of time providing consistent and
predictable income.
Structured cash flows often provide monthly income at a discount rate above other traditional income
options such as certificates of deposit, annuities and bonds. This allows a buyer to receive a predictable
cash flow deposited into their account on a monthly basis. You can select from available terms such as
5 or 10 years, the amount of monthly income desired and the credit risk preferred. While discount
rates can and will change, currently the effective rate available for a 5 year structured cash flow is 7%
as compared to a 5 year term certain single premium immediate annuity offering an internal rate of
return of 1.25% for the same term.
Annuities, bonds, CDs and structured cash flows all carry different risks.

5. Current rates and example payments:
 The chart below assumes an example $100,000 purchase price.
 Cash flows can be customized to a specific purchase price or monthly payment.
 Minimum purchase price is $15,000.
 There are currently no age limitations or restrictions by state.
 Nonqualified or Qualified (IRA / ROTH) funds can be used.
 Discount rates and available inventory may vary.
Source of Pension
Example
Purchase
Price
Term Effective
Rate
Monthly
Payment
Total Payment
Received
Federal Sourced Pensions $100,000 60 months 6.5% $1,937 $116,263
Select Pension Program:
State, Large Corporate & Federal $100,000 60 months 7% $1,959 $117,535
Federal Sourced Pensions $100,000 120 months 7% $1,143 $137,228
Select Pension Program:
State, Large Corporate & Federal $100,000 120 months 8% $1,190 $142,909
Why are the rates higher than those offered by other fixed options?
Structured cash flows are purchased at a discounted value from the seller. The discount rate for each
structured cash flow is determined by the current market price for what a seller is prepared to accept
as a lump sum in return for parting with their pension income for a set period of time. As with any
instrument: any time a supply and demand market is created, there can be good opportunities for both
the buyer and seller. In this case a seller has a need for a lump sum payment today while a buyer sees
an opportunity to receive a dependable monthly payment. For the buyer this creates an opportunity to
participate in an alternative income solution that has a low correlation to other traditional income and
equity products. Therefore, depending on effective rates, taxes and equity market performance a
structured cash flow may offer a superior income option on a risk-adjusted basis.

6. What are the risk and protections available?
Lack of Liquidity
Structured Cash Flows must be held to term and therefore are not liquid. The
interest rate and payment amount are set and will not increase or decrease in
response to market changes. As a result longer terms are subject to potential
interest rate risk.
Institutional Risks
Pension benefits represent dependable monthly income paid to a seller by an
institution to include federal, state and local government and corporate defined
benefit plans.
Federal government plans may have taxing authority and constitutional
safeguards which protect vested benefits. Corporate plans may offer backing
through the Pension Benefit Guarantee Corporation fund. www.pbgc.gov
A reserve account is available for pension benefits paid by cities, counties and some corporate pension
plans to help protect against default risks related to the paying institution. This reserve account shall
replace any lost payments due to the credit default of the pension benefit for as long as there are
remaining funds in the reserve account, or until a replacement of purchased payments has been
obtained.
Contract Risks
Contractual risks are those risks which are uniquely related to the purchase of
a structured cash flow and can result in a missed or reduced payment.
Examples of contract risk include attempted breach by the seller for any reason
including bankruptcy or death. Protections in place to safeguard against
contractual risk are outlined below.
Request a copy of the Future Income Payment Purchase Agreement from your referring Agent or Advisor for a
full listing of risk and protections available.

7. Who is Future Income Payments, LLC? (FIP)
Future Income Payments, LLC is a factoring company that
specializes in analyzing, acquiring and managing a broad range
of assets including structured settlements, annuities, lottery awards, pension cash flows, secondary
annuities, royalty payments and inheritance. FIP specializes in evaluating the credit worthiness of each
offering to determine value and risk. FIP’ management has previous experience in underwriting,
contracting agreements and debt collection all of which have resulted in a unique advantage within the
discounted cash flow market.
What protections are in place to safeguard against contract risks?
Future Income Payments, LLC has put in place several mechanisms in an attempt to protect against
contractual risks related to a pension seller. These protections include:
1. Underwriting Requirements
Any interested sellers must first meet certain financial underwriting requirements which include the
ability for a seller to maintain their financial commitment after receiving and spending a lump sum
payment.
Underwriting standards include:
 Credit Report and History
 Marital Status and State Ownership Laws
 Sources of Income and Debt to Income Ratio
 Use of Funds and Future Financial Stability
 Bankruptcy and Likelihood to File Bankruptcy in the Future
 Payment History (Tax Liens and Insurance Premium)
 Character Evaluation & Personal History
2. Shortfall Account and Reserve Account
Future Income Payments, LLC has established a shortfall account and a reserve account to protect
against contractual risks related to a pension seller. Contractual risks are those risks which are uniquely
related to the purchase of a structured cash flow and can result in a missed or reduced payment.
Examples of contract risk include attempted breach by the seller for reasons including bankruptcy or

8. death. The shortfall and reserve accounts are funded by FIP and represent a portion of the buyers
purchase price.
3. Reducing Obligation and Contract Replacement
The cash flow obligation owed from a seller reduces with every monthly payment. Therefore the risks
associated with the default of a particular cash flow also decrease. In addition, if a contract is
considered an official breach, and funds are available within the shortfall and reserve account, FIP will
attempt to replace the cash flow with a cash flow of similar characteristics. It is likely that FIP will be
able to replace the cash flow at a lower cost which will reduce exposure to the shortfall and reserve
accounts.
4. Experience in Debt Collection
Future Income Payments, LLC management has prior experience specific to debt collection. Assuming
a contract breach while funds are available within the reserve account, FIP will acquire the breached
contract which will allow them to pursue a resolution of payment directly from the seller.
5. Diversification
On purchases over $25,000 there is often more than one seller’s cash flow included in a single
transaction. This transaction is not a pooled transaction but instead individual cash flow transactions
completed with multiple sellers.
Important Disclosure
Although the resources mentioned above are in place to protect the buyer and the cash flow obligation
promised, historical precedence for this type of purchase is limited. Therefore these steps act as tools
for risk mitigation but do not serve to provide a guarantee of payment.
What is the process to purchase a structured cash flow?
Pension sellers are identified through the internet or other marketing campaigns by a factoring
company such as Future Income Payments, LLC. Each pensioner must complete a thorough financial
underwriting process to be approved to sell a portion of their pension income for a set period of time
(5 or 10 years).
A buyer will then submit a Future Income Payments Purchase Agreement and will send funds via
cashier’s check or wire to our bonded escrow company with funds held at Wells Fargo. Assuming the
requested inventory is available, within a target of 5 - 30 days from the time funds and paperwork are

9. received, FIP will identify a specific cash flow(s) from one or more sellers to meet the buyers requested
parameters. They will then deliver to the buyer, through their referring agent, a set of closing
documents for the buyers review. Once the closing documents are approved, signed and returned, the
transaction will close. Assuming a transaction is close by the 24th of the month, payments will begin on
the 1st of the following month and will continue monthly throughout the term of the contract.
IRA, Roth and Qualified funds:
Structured cash flows can be purchased and held within a custodial IRA account. These accounts often
have annual fees and set up and distribution costs. Income paid from a structured cash flow is paid back
into the custodial account until distributions are requested by the IRA owner. The process to purchase
a structured cash flow is similar to the process outlined above except that first a custodial IRA account
must be established and funded.
How do structured cash flows compare with traditional income solutions
such as immediate annuities?
Immediate annuities are not an exact apple-to-apples comparison to structured cash flows, but are
close. Both income streams (assuming non-qualified dollars) distribute both principal and interest in
each payment and in the example below both are period certain.
The illustration below provides an example of using a currently top rated fixed immediate annuity
versus an available structured cash flow. In this case the buyer would benefit from a savings of $36,225
(22% fewer funds required) to receive the same $1,500 of monthly income paid for 120 months.
Income
Solution
Total Payments
Received
Monthly
Payment
Received
Total Income
Received
Purchase
Amount
Required
Discount
Rate
Structured
Cash Flow
120 monthly
payments $1,500 $180,000 $125,953 8.00%
Immediate
Annuity
120 monthly
payments $1,500 $180,000 $160,928 2.33%
Annuities, and structured cash flows carry different risks.

10. What is a structured cash flow?
A structured cash flow represents a fixed income stream such as a qualified annuity payment,
retirement benefit or pension income sold at a discount in exchange for a lump sum payment.
These future income streams can provide for higher rates of return than available through traditional
fixed or income products. Structured cash flows represent predictable income that is originally
sourced from institutions such as the federal government, investment grade corporations, and state
and local governments.
For more information visit StructuredCashFlows.com
To learn more about the risks and protections associated with a Structured Cash Flow
ask your referring Agent for a copy of the Future Income Payment Purchase Agreement.
The information and rates contained in this brochure are as of June 2014.
Not available for sales in the states of Washington or Vermont.
Copy right 2012 StructuredCashFlows.com. All rights reserved.