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Single Michigan mom, 24, with two jobs wins $66 MILLION lottery
NY Daily News ^ | 7/31/14 | Sasha Goldstein

Posted on 08/01/2014 4:52:42 AM PDT by SoFloFreeper

Kelsey Zachow bought the ticket on Friday the 13th last month, but didn't even know she had the winning slip until 11 days later. The mom of a 7-month-old, Zachow will take home $27 million in the lump sum payment after taxes, and plans to quit her jobs.

(Excerpt) Read more at nydailynews.com ...


TOPICS: Culture/Society; News/Current Events; US: Michigan
KEYWORDS: gambling; michigan; rich
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Wow.

First of all, good for her.

Second, I think it is ABSURD that the prize of $66M is reduced, due to government's greed, to $27M.

Third, I think government-sponsored lotteries over all are a generally bad idea, keeping people from working hard and saving. I would make an exception, perhaps, for occasional events for special purposes.

1 posted on 08/01/2014 4:52:42 AM PDT by SoFloFreeper
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To: SoFloFreeper

May she spend it wisely. Hope she doesn’t blow it all and end up back where she started.


2 posted on 08/01/2014 4:54:05 AM PDT by Politicalkiddo (Slavery, genocide, and imperialism aren't exclusively white institutions.)
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To: SoFloFreeper

well....lump sum is half before taxes
that’s 33.5 Million...and then Uncle sam takes his bite. and then maybe state taxes.
still....that’s a pretty good payday. God bless her.


3 posted on 08/01/2014 4:54:52 AM PDT by Yorlik803 ( Church/Caboose in 2016)
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To: SoFloFreeper

how long before baby-daddy comes back into the picture?


4 posted on 08/01/2014 4:55:14 AM PDT by Dacula
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To: SoFloFreeper

Good for her indeed. But now that she’s one of the greedy rich, she has to pay her fair share of taxes to help those in need.


5 posted on 08/01/2014 4:56:42 AM PDT by Opinionated Blowhard ("When the people find they can vote themselves money, that will herald the end of the republic.")
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To: Politicalkiddo

Riches to rags: Why most lottery winners end up broke

https://ca.finance.yahoo.com/news/riches-rags-why-most-lottery-winners-end-broke-180227163.html


6 posted on 08/01/2014 4:56:54 AM PDT by ilovesarah2012
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To: SoFloFreeper
NOT GUILTY

7 posted on 08/01/2014 4:57:13 AM PDT by BenLurkin (This is not a statement of fact. It is either opinion or satire; or both.)
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To: Politicalkiddo

Every relative will come out of the woodwork with their hands out.The father of her child will suddenly want to get married.She’s going to need help or she’ll be broke overnight.


8 posted on 08/01/2014 4:57:52 AM PDT by Farmer Dean (stop worrying about what they want to do to you,start thinking about what you want to do to them)
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To: SoFloFreeper

60% tax rate??!!?

Yikes!


9 posted on 08/01/2014 5:00:02 AM PDT by sauropod (Fat Bottomed Girl: "What difference, at this point, does it make?")
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To: sauropod

Forgot about the lump sum vs annuity option.

Still a big bite.


10 posted on 08/01/2014 5:03:15 AM PDT by sauropod (Fat Bottomed Girl: "What difference, at this point, does it make?")
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To: SoFloFreeper
Second, I think it is ABSURD that the prize of $66M is reduced, due to government's greed, to $27M.

$66M is the annuity value, designed to be paid out over a term of typically 20-25 years. Taking the "lump sum" payout means you take a smaller amount, essentially the same as the principal that would buy the annuity. Most states do not levy state income tax on lottery winnings (not sure about Michigan), although federal taxes apply. Assuming a 28% federal tax rate, the actual lump sum payment would be about $39M, with $12M going to federal income tax.

Hopefully this woman will play it smart with her winnings. My advice: take the majority of that money and invest it in low-risk, income-generating investments. To wit: she can spend $2M on whatever she wants, invest the other $25M, and even at an anemic 2.0% APY, she'll pull in $500k in gross income a year, for life.

11 posted on 08/01/2014 5:03:35 AM PDT by kevkrom (I'm not an unreasonable man... well, actually, I am. But hear me out anyway.)
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To: Farmer Dean

That’s the truth and then some.


12 posted on 08/01/2014 5:04:39 AM PDT by Politicalkiddo (Slavery, genocide, and imperialism aren't exclusively white institutions.)
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To: sauropod

It’s not a 60% tax rate.

The $66 million is if you take sum total of a 20-25 year annuity which will total $66 million after the disbursement.

Lotteries typically pay half of the actual number on a “I’ll take it all now.” basis. Now its up to her to make sound decisions and make sure that money actually is worth more than the $66 million she won over 20-25 years.

It shouldn’t be that hard since lotteries typically would take that principle and invest it in index funds or something equally conservative to get that full amount over 25 years. Sensibly invested that money will dwarf the actual lottery prize in 25 years.


13 posted on 08/01/2014 5:08:09 AM PDT by PittsburghAfterDark
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To: Politicalkiddo

She already made a gigantic mistake by publicly claiming it and having her picture taken.


14 posted on 08/01/2014 5:08:32 AM PDT by Durus (You can avoid reality, but you cannot avoid the consequences of avoiding reality. Ayn Rand)
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To: Dacula

And all the other long lost relatives!


15 posted on 08/01/2014 5:11:57 AM PDT by Maine Mariner
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To: SoFloFreeper

I guess Im the only one who wonders why a single mom with 2 jobs is blowing money on the lottery?


16 posted on 08/01/2014 5:12:10 AM PDT by Mom MD
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To: Farmer Dean

Apparently she wants to pay for luxury vacations, cars, and pay the tuition of her family members.

I give her a couple years and she’ll be dead broke.


17 posted on 08/01/2014 5:13:00 AM PDT by CorporateStepsister (I am NOT going to force a man to make my dreams come true)
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To: Durus

Most states require it.


18 posted on 08/01/2014 5:13:35 AM PDT by j.argese (Not anymore!)
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To: PittsburghAfterDark

I corrected myself in post #10. Need more coffee.

Thanks for the note. Cheers.


19 posted on 08/01/2014 5:13:47 AM PDT by sauropod (Fat Bottomed Girl: "What difference, at this point, does it make?")
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To: SoFloFreeper

You don’t get the full 66 if you take the lump sum, in effect, you get what would have to be banked in order to provide 66 million over the course of 20 years or whatever the payout term is.


20 posted on 08/01/2014 5:16:49 AM PDT by dmz
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To: Mom MD

Hubby and I blew some money yesterday on some chocolate chip cookies. Really bad for both of us, but we sure enjoyed them. I don’t usually care what other people spend their money on.


21 posted on 08/01/2014 5:16:54 AM PDT by BykrBayb (World Lung Cancer Day {WLCD} Aug 1 https://facebook.com/events/309580722464921 ~ Þ)
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To: SoFloFreeper

Will she turn in her EBT card too?


22 posted on 08/01/2014 5:16:58 AM PDT by George from New England (escaped CT in 2006, now living north of Tampa)
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To: Politicalkiddo

She’s so young. Should be taking it over 20 years or whatever to maximize the return.


23 posted on 08/01/2014 5:18:09 AM PDT by George from New England (escaped CT in 2006, now living north of Tampa)
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To: Durus

Most states, as I understand it, don’t have the anonymous option.

When I win it big here in Md, you’ll never see my face.


24 posted on 08/01/2014 5:18:30 AM PDT by dmz
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To: SoFloFreeper

Lotteries are someone dishonest in their advertisements.
Say you win a lottery with an advertised payout of $1,000,000 a year for 20 years. The Lottery agency will say it is a $20,000,000 payout which is true. But a $1,000,000 a year for 20 years is not worth a lump sum payment of $20,000,000. It is a simple time value of money problem.
How much are you willing to pay today for the right to receive $1,000,000 twenty years (19, 18, etc) from now.


25 posted on 08/01/2014 5:18:31 AM PDT by Maine Mariner
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To: Mom MD

I guess Im the only one who wonders why a single mom with 2 jobs is blowing money on the lottery?

<><><<

I think she now has 27 million reasons why.

I think if we took a look at your, or anyone else’s, spending we could find something frivolous, don’t you think?


26 posted on 08/01/2014 5:20:48 AM PDT by dmz
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To: Durus

I concur. If I were to win the lotto, then I wouldn’t tell anybody I couldn’t trust. I certainly wouldn’t let it become public knowledge. Especially since she has a young child.


27 posted on 08/01/2014 5:24:18 AM PDT by Politicalkiddo (Slavery, genocide, and imperialism aren't exclusively white institutions.)
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To: kevkrom

She needs a reputable financial advisor.


28 posted on 08/01/2014 5:25:05 AM PDT by Jack Hydrazine (Pubbies = national collectivists; Dems = international collectivists; We need a second party!)
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To: Maine Mariner

And dead relatives!


29 posted on 08/01/2014 5:26:07 AM PDT by Jack Hydrazine (Pubbies = national collectivists; Dems = international collectivists; We need a second party!)
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To: Mom MD

...umm because it’s essentially a voluntary tax upon the poor like cigarettes?


30 posted on 08/01/2014 5:26:11 AM PDT by Revelation 911
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To: PittsburghAfterDark

What 20-25 year annuity?


31 posted on 08/01/2014 5:28:08 AM PDT by Jack Hydrazine (Pubbies = national collectivists; Dems = international collectivists; We need a second party!)
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To: SoFloFreeper

She will have it stolen from her by many means.

The safety and security of your family is your first priority.

Take it as quietly as you can.


32 posted on 08/01/2014 5:28:58 AM PDT by G Larry (Which of Obama's policies do you think I'd support if he were white?)
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To: dmz

She may have 27 million reasons why, but most people that play lottery never win. Of course I spend some things frivolously, but I’m also not a single mother of 2 kids working 2 jobs trying to pay for them

The lottery is a tax on people who are bad at math, and I find it interesting that most winners are people who can least afford to buy tickets. It is a state sponsored money drain on the poor.


33 posted on 08/01/2014 5:29:44 AM PDT by Mom MD
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To: Mom MD

I did too.


34 posted on 08/01/2014 5:29:56 AM PDT by SoFloFreeper
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To: SoFloFreeper

For every story like this there are millions who spend money on lottery tickets instead of food for their kids.


35 posted on 08/01/2014 5:30:28 AM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: kevkrom

Based on the behavior of past lottery winners there is a very good chance she’ll be bankrupt within 5 years.


36 posted on 08/01/2014 5:31:54 AM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: j.argese

In any state in the union you can form a Trust or LLC and claim the money through them even if there isn’t an “anonymous” option.


37 posted on 08/01/2014 5:32:30 AM PDT by Durus (You can avoid reality, but you cannot avoid the consequences of avoiding reality. Ayn Rand)
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To: Jack Hydrazine
She needs a reputable financial advisor.

Most likely. But even a modicum of common sense would be better than what happens to oh, so many lottery winners who go on spending binges and develop lifestyle habits that lead to bankruptcy.

I don't typically play the lottery, but I will when the jackpot gets high enough. For me, the entertainment value of imagining what I'd do with that kind of money is worth the $1 or $2 I spend on the ticket. But I've also "game planned" how to take care of that kind of money, too. It really just boils down to "invest the bulk of it and live off the proceeds", though in my particular case, having two autistic children makes setting things up a little trickier in terms of inheritance, to ensure they're taken care of and not taken advantage of.

Of course, if push ever came to shove, I'm fortunate that I have a father-in-law who's a (retired) financial planner and on the other side of the family, a brother-in-law who's an accountant. So I won't have to search hard for specific advice I can trust.

38 posted on 08/01/2014 5:33:37 AM PDT by kevkrom (I'm not an unreasonable man... well, actually, I am. But hear me out anyway.)
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To: BenLurkin

Sadly the past track record of people who have lived her story generally includes bankruptcy within ten years.


39 posted on 08/01/2014 5:34:13 AM PDT by Buckeye McFrog
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To: Mom MD
A single mom with two jobs is determined.

That determination is a mind set based on who and what she considers herself to be.

She's young and strong and can easily see a couple of bucks a paycheck on the infinitesimal hope that ... just maybe ...

She's also not guilty so her ...um ... personal, inner self is (should be) satisfied.


If it was me ... I'd run right to church, get alone and quiet, beg God's forgiveness for everything I can think of/remember ... and sit quietly while HE works and prepares his sermon for me.

Ain't leavin' 'til I hear from ya, God.

40 posted on 08/01/2014 5:35:13 AM PDT by knarf (I say things that are true .. I have no proof .. but they're true.)
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To: Durus
She already made a gigantic mistake by publicly claiming it and having her picture taken.

Not sure about Michigan, but in Pennsylvania it says clearly on the ticket that you agree to let the Lottery Commission use your name and likeness for promotional purposes as a condition of claiming the prize.


41 posted on 08/01/2014 5:35:25 AM PDT by Buckeye McFrog
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To: kevkrom

I’d add a third professional to financial planner and accountant, too - get a good lawyer to help you get things set up the way you want or need them.


42 posted on 08/01/2014 5:36:14 AM PDT by kevkrom (I'm not an unreasonable man... well, actually, I am. But hear me out anyway.)
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To: driftdiver

Unfortunately bump.


43 posted on 08/01/2014 5:37:42 AM PDT by upchuck (It's a shame nobama truly doesn't care about any of this. Our country, our future, he doesn't care.)
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To: Buckeye McFrog

See my 37. People have been creating LLCs and Trusts to collect winnings for years. Look up past winners of megabucks or powerball, and you will see that a good portion of them do not have anything other than the name of the trust/LLC and if there is a picture it’s of the lawyer/agent collecting the symbolic check.


44 posted on 08/01/2014 5:38:07 AM PDT by Durus (You can avoid reality, but you cannot avoid the consequences of avoiding reality. Ayn Rand)
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To: Politicalkiddo
I concur. If I were to win the lotto, then I wouldn’t tell anybody I couldn’t trust.

I'd bet it's practically a requirement that winners participate in the publicity because that's advertising to sell more lottery tickets in the future.

45 posted on 08/01/2014 5:40:38 AM PDT by Will88
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To: BenLurkin

She’s pretty cute!


46 posted on 08/01/2014 5:40:40 AM PDT by Cheapskate
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To: SoFloFreeper

:: and plans to quit her jobs ::

Not always the best of decisions when one is the beneficiary of the lottery.


47 posted on 08/01/2014 5:41:04 AM PDT by Cletus.D.Yokel (Catastrophic Anthropogenic Climate Alteration: The acronym explains the science.)
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To: kevkrom

vtinx or vwinx or 50/50 each and kick back


48 posted on 08/01/2014 5:44:27 AM PDT by CGASMIA68
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To: Cletus.D.Yokel
I stole this from another FReeper's home page ...

I think it would fit for a lottery winner;


10. You never know when it will strike but there comes a moment at work when you know that you just aren't going to do anything productive for the rest of the day.


Probably immediately after clocking in, is my guess.

49 posted on 08/01/2014 5:44:36 AM PDT by knarf (I say things that are true .. I have no proof .. but they're true.)
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To: SoFloFreeper
Congratulations to her! I hope she makes proper financial decisions that allow her and her children to have a lifetime of positivity as a result of the win.
50 posted on 08/01/2014 5:45:17 AM PDT by liberalh8ter (The only difference between flash mob 'urban yutes' and U.S. politicians is the hoodies.)
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