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I just saw a commecial for JG Wentworth, is this possible?
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?

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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