Skip to comments.Single Michigan mom, 24, with two jobs wins $66 MILLION lottery
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 ...
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.
May she spend it wisely. Hope she doesn’t blow it all and end up back where she started.
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.
how long before baby-daddy comes back into the picture?
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.
Riches to rags: Why most lottery winners end up broke
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.
60% tax rate??!!?
Forgot about the lump sum vs annuity option.
Still a big bite.
$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.
That’s the truth and then some.
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.
She already made a gigantic mistake by publicly claiming it and having her picture taken.
And all the other long lost relatives!
I guess Im the only one who wonders why a single mom with 2 jobs is blowing money on the lottery?
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.
Most states require it.
I corrected myself in post #10. Need more coffee.
Thanks for the note. Cheers.
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.
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