Future Income Payments information for investors
In the past several years multiple state finance and securities regulators have filed enforcement actions against Henderson, Nevada based Future Income Payments LLC to stop them from targeting pensioners – many of them military veterans- with a pitch to “cash out” their pensions and receive a lump sum payment. Some of these pension advance transactions are structured like loans, charging above market rate interest rates. The decision to sell the rights to a pension at a discount is fraught with perils, and could be one of the worst mistakes a retiree ever makes.
On the other side of the Future Income Payments transaction are investors who were contacted by Registered Investment Advisors or brokers looking for investors to “fund” the “loans” to the Pension recipients. Investing in these transactions is full of risks, including the lack of transparency, high commissions and fees, and an inability to collect in the event of default.