If you want an annuity income don't worry about them paying it off, you can always reinvest the money.Next, 8% is fine, IMO under current conditions.

The real paper game is more involved than just notes, any annuity stream can be assigned and it's present value determined to provide a specified yield.

Following are items generally not considered eligible compensation to fund IRAs.Earnings and profits from property and investments, such as rental income, interest income, and dividend incomeDeferred compensationIncome from a partnership for which an individual does not provide services that are a material income-producing factorAny amounts an individual excludes from income (other than combat pay), such as foreign earned income and housing costsRetirement income, including Social Security, pension, and annuity incomeDisability payWorker’s compensationUnemployment compensationChild support payments

Geez @Curt Smith We must be blood brothers.Formula- Buy-Control-Flip  low equity dealsSub2 and rent outLease Option and assign for 3-5%Wrap and re Wrap on Owner financing for spreadFree and clear no loansBuy on Installment Sale, no Dodd Frank if you are not living in it, turn the residence into "paper" "an annuity" for the retiree.Buy 10 of each, no banks, no credit.

They will see it as an annuity.

Mrs. seller, I get your cash flow much like an annuity from insurance company, where you get a cash flow payment for a period of time, and the cash flow would come in every month the matter what.And if you plan it correctly, this cash flow will continue even after your death, which would be a benefit to whoever you chose, whether it be a church, or your children, or any good cause?"

To learn more about UDFI, see the following. https://www.irs.gov/irm/part7/irm_07-027-008.htmlFollowing are the similarities and differences between the solo 401k and the self-directed IRA.The Self-Directed IRA and Solo 401k SimilaritiesBoth were created by congress for individuals to save for retirement;Both may be invested in alternative investments such as real estate, precious metals tax liens, promissory notes, private company shares, and stocks and mutual funds, to name a few;Both allow for Roth contributions;Both are subject to prohibited transaction rules;Both are subject to federal taxes at time of distribution;Both allow for checkbook control for placing alternative investments;Both may be invested in annuities;Both are protected from creditors;Both allow for nondeductible contributions;Both are prohibited from investing in assets listed under I.R.C. 408(m); andNeither may be invested in your own business.  

Following are the similarities and differences between the solo 401k and the self-directed IRA.The Self-Directed IRA and Solo 401k Similarities Both were created by congress for individuals to save for retirement;Both may be invested in alternative investments such as real estate, precious metals tax liens, promissory notes, private company shares, and stocks and mutual funds, to name a few;Both allow for Roth contributions;Both are subject to prohibited transaction rules;Both are subject to federal taxes at time of distribution;Both allow for checkbook control for placing alternative investments;Both may be invested in annuities;Both are protected from creditors;Both allow for nondeductible contributions;Both are prohibited from investing in assets listed under I.R.C. 408(m); andNeither may be invested in your own business. 

@Mukesh YadavFollowing are the similarities and differences between the solo 401k and the self-directed IRA.The Self-Directed IRA and Solo 401k SimilaritiesBoth were created by congress for individuals to save for retirement;Both may be invested in alternative investments such as real estate, precious metals tax liens, promissory notes, private company shares, and stocks and mutual funds, to name a few;Both allow for Roth contributions;Both are subject to prohibited transaction rules;Both are subject to federal taxes at time of distribution;Both allow for checkbook control for placing alternative investments;Both may be invested in annuities;Both are protected from creditors;Both allow for nondeductible contributions;Both are prohibited from investing in assets listed under I.R.C. 408(m); andNeither may be invested in your own business.  

Following are the similarities and differences between the solo 401k and the self-directed IRA.The Self-Directed IRA and Solo 401k SimilaritiesBoth were created by congress for individuals to save for retirement;Both may be invested in alternative investments such as real estate, precious metals tax liens, promissory notes, private company shares, and stocks and mutual funds, to name a few;Both allow for Roth contributions;Both are subject to prohibited transaction rules;Both are subject to federal taxes at time of distribution;Both allow for checkbook control for placing alternative investments;Both may be invested in annuities;Both are protected from creditors;Both allow for nondeductible contributions;Both are prohibited from investing in assets listed under I.R.C. 408(m); andNeither may be invested in your own business.