Yes woman who won $1M lotto SHOULD get food stamps.

[Sweater Cows!]

I differ from most, but I am looking at his long term and here is why I think she should continue to get food stamps.

If after taxes she is left with 700,000 dollars that is not very much money. Once invested the sum will draw anywhere from Zero to maybe in a really ,really good year 12%. So 12% of 700K is 84,000 dollars,but we all know in the next few years she will be lucky to be drawing 4-6%.

So lets meet in the middle and say in the next ten years she is lucky enough to draw 5%. The dividend on 5% is $35,000. So with that 35K  to reinvest so as not to drain the principal. If she did not reinvest any dividends she would have the winnings depleted to zero dollars in 20 years.If she has issues with her houses she may need to tap into the principal even more for repairs and continuing taxes and maintenance.

The woman looks my age, so if that is the case, and the economy stays in the tank and she can't find work, well, she will be back on social services at age 55. So since she had to pay roughly half of the $1M win in taxes she is getting her money back in any services she uses for the next few years anyway. She is not touching our money.

I think the importance of having a nest egg so when she turns 70 and wants to retire she does not have to live like many elderly people is more important right now than having her live off the 500,000 that she has and then the money is just gone and she is back to being on welfare. We all know medicare and social security are not really enough for anyone to live a good life.

I would rather see someone maintain their investments and use some welfare now to get by than to drain the principal and end up broke again in 20 years.

Some people will say who needs two houses? But when it comes down to it the fact of having a second home could also be important for retirement as a person can sell one and have some funds to live.

I now see the legislature is looking to make people claim even a $1000 dollar win in monies. That is insane, 1K is enough to almost pay the taxes on the house for a year or a months rent and groceries and then poof! it's gone.

[XLFD]

As I read it, lottery winnings are considered liquid assets and don't count towards who's eligible for food stamps under current Michigan law.  They apparently have some bill in the works to close this loophole, but I agree with Shrugs, why villify this poor woman because the law is the way it is? 

The State and Feds have taken $210,000 from her winnings already in taxes, a "legitimate" form of stealing and fraud that not enough people complain about.  She was reportedly receiving $200 in food stamps per month, and so that is 1050 months of food stamps, over 87 years of benefits.  Furthermore, because she took it in a lump sum, the State effectively cut $300,000 more from her winning amount.  That's 125 more years of food stamp benefits. 

She’s obeying the law and taking the benefits she is legally entitled to receive. You might think certain tax laws are stupid, but that doesn’t mean people have an obligation to willingly reject benefits or give the government extra money. 

If you made over $60,000 last year, but legally lowered your tax burden via 401k contributions, HSA contributions, charitable donations, student loan interest deductions, investment losses, etc. you don't “need” to reduce your taxable income to keep a roof over your head and food on the table; you do it because you have a legal right to do so. Does that make you a bad person? 

If you went to Little River Casino and hit the $1 Million jackpot, and the casino skimmed over half of your winnings for taking it in a lump sum and for some nebulous 'fee' (such as state and federal taxes on lottery earnings), you would rightly cry foul.  If they then decided that they needed to take away $200 of yours a month that you were legally entitled to, you would be incensed.  But that's exactly what the "casino owner" is doing here.

[Willy]

X

Using your logic, every tax payer should be eligible for assistance because they gave up their money in taxes so therefore they deserve food stamps or any other available assistance even tho they are working. She's paying her taxes up front while the rest of us are paying as we earn it. That was her decision. If she would have taken the money over a 20 year period would she be eligible for assistance because she would have an income of $50, 000 per year. Anyway you slice this, it's bad government in action and a big reason why we are going broke.

[XLFD]

Willy, I'm more saying that because the law says she is still eligible for those stamps even when she lawfully declares the earnings.  I think her decision to make that lump sum payment was a bad idea, as was her idea to buy a couple of houses with some of the money.  I think the decisions she's making shows why she needed assistance in the first place, she doesn't know how to handle the money she's blessed with.  I know a lot of people like that. 

[XLFD]

Larry,

I think a state-run lottery is a bad idea, period.  It's an unnecessary tax on poor folks without a grasp on statistics.  Almost all the money the state brings in on the lottery comes from those who can afford it the least, and if someone does hit it big, the state takes too much of a cut from it, and other fiscal predators close in on them for the rest.  Many wind up worse than when they started.

The morality of the state is suspect when they outlaw gambling but allow lottery tickets.  Let those addicted to gambling spend their money in the private sector.

[Willy]

Larry

Good points

[Dave]

I think I read that the young lady was 24.

Guess I'll take the perspective that as long as she has income coming in that is a 'livable' income... meaning that a reasonable person can live without any significant difficulty in paying rent, putting food on the table and paying typical bills like for electric... that they not be allowed access to services that people who have a legit need for the services. If she takes care of the money then with a little luck she is able to transform her winnings into a lifelong income.

[Willy]

When

I completely disagree with your thinking. I almost thought you were joking but it appears that you are serious. First of all let me say that she SHOULD NOT be receiving food stamps even if she had not won the lotto unless she is destitute.  This situation clearly demonstrates the huge division between liberals and conservatives, between socialists and capitalists, between ethical people and those with no ethics, between the 50% who pay taxes and the 50% who don't, between the mindset of working for a living and leaching off others. This infuriates me. This woman thinks she is entitled to other peoples money and she gets this opinion from liberals and socialists and our Government who reinforces this type of thinking. 

 

[Dave]

After hearing that she bought a house and a car with her winnings, I feel less sympathetic to her situation.. not that I was very sympathetic to begin with. The Lottery commission I believe recommends getting a financial consultant of some kind whenever winning a large sum of money... she obviously should of listened to that recommendation. You take care of the money first, invest and such so that the money grows if your going to do the lump sum. Of course she should of never taken the lump sum in my opinion to begin with. A younger person should definitely always take the 20 year payouts unless they know they are in ill health or something that would prevent them from receiving all of their winnings. At my age, I'd take a lump sum simply because I know I'm not in the greatest health and might not be around in 20 years.

I just can't get behind her whining either that she 'has bills to pay, that she has 2 houses', that's not our fault, she put herself in that position and she has the money to pay for bills so she should be doing just that until such time she can't afford to do so.... which unfortunately will probably come sooner rather then later in her case.

[Lisa O'Brien]

Ok - if were talking long term - she is young why doesn't she go to school and get a degree. This way she will be able to gain employment contribute to a 401K get bigger SS checks when she retires. Her future if she plays her opportunity's the right way is all roses.

[masonco]

I just read that they revoked her food stamps, and this just sped up the bill already in congress (from the same thing with the guy who won 2M

[Sweater Cows!]

When I wrote this thread I was thinking about you masonco, i took the presumption that this girl would work and save on top of her winning (if the economy ever recovers) but that in doing so she would be able to weather what has hurt your family so much, which is the loss of all the savings from working due to medical bills that insurance and medicare will not cover.

I think some people did not quite get the premise of where I was writing from, I know some people thought I stated some things that I didn't just by reading too much into my post but there is no point in going back and explaining, not tonight anyway.. But really it is all about having that money 20, 30 or 40 years from now and not having to tap into it until then.

And I absolutely feel that 700K is not that much money. A hip replacement, kidney, knees, open heart surgery, cancer etc and it would be gone in a year. EDIT:and some very expensive medications that many seniors cannot afford.

[Sweater Cows!]

"Next law we will see is the Baby Boomers will make it illegal for the younger generation to refuse financial aid to their aged parents."

I see that as something they that the kids should do anyway, out of respect and love for their elders. I would have no problem taking care of my parents if they needed it. In many countries the genrations live together and everyone supports everyone else. the whole move out and get you own place and sleep in your own bed as a baby way of "modern" parenting has made us an cold unconnected society.

AS far as My view the baby boomers were the last generation to build wealth in this country. They could actually do it in the last 50 years, now we are all screwed, not because of the BB's but because of wall street and the gov't pissing away all the money the babyboomers made for them.

And as far as 700K being a lot. well if you wanna drive this http://www.leftlanenews.com/new-car-buying/bugatti/veyron-16.4/

And live here

 it won't even get you started.

Sure it will never happen for me but the point is that it CAN't happen as there is no ability to build wealth like the BB's had. MY generation is screwed.  Our kids are even worse of if we don't get the economy and debt problems fixed.