| Author | Message |
FuzzyFerret
166 posts |
#69787 2008-05-19 03:01 GMT |
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ok, this company JJ or JG Wentworth says they will pay all proceeds upfront...does this include Lottery winnings?
If it does, then will it be to my benefit not get the lump sum payment because CA will take 50% if I do. Now I just go to JG and offer him 25% if he gives me the lump sum? now, i get 75% now! and JG gets 25% extra!! is there something wrong here? |
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WildFlower
137 posts |
#69788 2008-05-19 03:06 GMT |
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it must be if u saw a comercial
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Elgan
139 posts |
#69789 2008-05-19 03:58 GMT |
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JG Wentworth is the biggest scam in the world. They even use a white rich guys name for the name of their company. They rip off poor people who win lawsuits and the lottery by promising money up front. The people that win this lotteries and lawsuits usually need the money so badly that they take up front payments from these fraudsters. They end up giving so much away that they sometimes are left with little or nothing. Just another company preying on the poor.
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Sunburst
146 posts |
#69790 2008-05-19 05:00 GMT |
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they're probably scammers who would give you a worse deal than that cal state deal.
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Cow
151 posts |
#69791 2008-05-19 07:14 GMT |
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They agree to give you the money that you are due, but at a high cost. They have you sign over the papers on your annuity, lottery winning, whatever the case may be, and then give you a portion of it. Don't do it!! Be patient!! There is no such thing as "easy money".
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Eatsnow
142 posts |
#69792 2008-05-20 02:41 GMT |
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The principle that JG Wentworth relies on is called the "present value of an annuity." It boils down to the choice between a little money now or more money later. You see, interest and inflation play a role. If you get the money later, inflation makes it worth less. If you get it now, you can be earning interest income that compensates for the reduced amount.
Wentworth would be paying you now for money they will not be getting until later. From your perspective you are getting your lottery winnings now. From their perspective, they are effectively giving you a loan which will be paid back with the payments made by the lottery winnings. You can use a financial calculator or an annuity table to calculate the effective interest rate you would be getting if you take the lump sum now. |
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Puppet
138 posts |
#69793 2008-05-20 02:42 GMT |
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CA takes money for taxes. You are going to have to pay the taxes either way. I would suggest to take the cash option and invest the majority of it in Real Estate. Keep enough to live off of for a while, but your investments are what is going to turn that money into something. DO NOT JUST SPEND IT. Invest as much as you can.
JG Wentworth will take 25% and then you will still have to pay the taxes on it. Do not do this. If you already are on annuity keep it there. |
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