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Public assistance pulled from lottery winner
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Author:  Mookhow [ Thu Mar 08, 2012 10:52 am ]
Post subject:  Public assistance pulled from lottery winner

http://www.cnn.com/2012/03/07/us/michig ... ?hpt=hp_c2

Quote:
Public assistance pulled from lottery winner
By the CNN Wire Staff
updated 10:39 AM EST, Thu March 8, 2012

(CNN) -- A Michigan woman who won the lottery but continued to receive food assistance from the state government has had her benefits pulled, officials said.

Amanda Clayton hit it big playing the Michigan Lottery. Like many winners, she used her $1 million prize to buy a new house.

But the Lincoln Park, Michigan, resident continued to receive money in another form -- $200 a month in state food assistance, according to CNN Detroit affiliate WDIV.

Her story made headlines, and on Thursday, the state's Department of Human Services announced that she is no longer getting the benefits.

According to Michigan law, welfare recipients must report any changes in assets or income to the agency within 10 days.

The department "relies on clients being forthcoming about their actual financial status. If they are not, and continue to accept benefits, they may face criminal investigation and be required to pay back those benefits," Director Maura Corrigan said in a statement.

She said the agency supports new legislation that would verify whether lottery winners receive state benefits.

"I thought that they would cut me off, but since they didn't, I thought, maybe, it was OK because I'm not working," Clayton, 24, told WDIV when it asked whether it was appropriate for her to receive the money.

A state lawmaker is trying to stop such assistance, which is not illegal. He says the food assistance should not go to those who have found riches through the lottery.

"We need to continue to protect our taxpayers' dollars ... and taxpayer dollars should be going to those who really do need assistance," Michigan Rep. Dale Zorn of Ida Township told HLN's Vinnie Politan on Wednesday.

In October, Clayton walked away with $1 million in the "Make Me Rich!" lottery game show. She also bought a car, WDIV reported.

After taking a lump sum and paying taxes, the unemployed woman said she ended up with just more than $500,000.

Asked if she had the right to the public assistance money, Clayton answered, "I kind of do. I have no income, and I have bills to pay. I have two houses."

Zorn said the state House has passed bills on the matter. One would require a state agency to conduct an assets test if a citizen wins more than $1,000 in lottery earnings. "That will trigger whether or not the people are eligible to receive public assistance."

The legislature has not approved any final measures.

Clayton told WDIV she had wanted to continue using a food-assistance card until it is cut off. "It's hard. I am struggling."

Author:  Rafael [ Thu Mar 08, 2012 11:27 am ]
Post subject:  Re: Public assistance pulled from lottery winner

Mookhow wrote:
Asked if she had the right to the public assistance money, Clayton answered, "I kind of do. I have no income, and I have bills to pay. I have two houses."

Clayton told WDIV she had wanted to continue using a food-assistance card until it is cut off. "It's hard. I am struggling."


Egads you dumb **** ****!!

Author:  Talya [ Thu Mar 08, 2012 11:30 am ]
Post subject: 

lol.

Author:  Xequecal [ Thu Mar 08, 2012 4:41 pm ]
Post subject:  Re: Public assistance pulled from lottery winner

Would you turn down free money if it was legal and you qualified?

Author:  Talya [ Thu Mar 08, 2012 4:47 pm ]
Post subject: 

Would you later complain that you are entitled to it if they change the qualifications and you have a million dollars+ in assets?

Author:  Raltar [ Thu Mar 08, 2012 5:27 pm ]
Post subject:  Re: Public assistance pulled from lottery winner

Xequecal wrote:
Would you turn down free money if it was legal and you qualified?


I wouldn't. But then I wouldn't complain about it later when they stopped paying me because I won the **** lottery.

Author:  Rorinthas [ Thu Mar 08, 2012 7:33 pm ]
Post subject: 

Drop, meet bucket.

Author:  Dash [ Thu Mar 08, 2012 8:47 pm ]
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So funny. People really have no concept of money. A million dollars, while certainly nice to come into, doesnt mean all that much. If I won a million today, I'd be going to work tomorrow just the same.

She ended up with a bit more than half a mil. Bought a house, I'd love to know what she spent there. Will be dead broke again within a year sadly.

Author:  Raltar [ Thu Mar 08, 2012 8:51 pm ]
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I could easily live the rest of my life with a million. I don't plan on ever having a family, so that kind of leaves me with a lot of extra money.

Author:  Rorinthas [ Thu Mar 08, 2012 9:49 pm ]
Post subject:  Public assistance pulled from lottery winner

I could buy my dream house for 100k. Not having to pay rent would certainly fix enhance the distance of my pay check. You could invest the rest and maybe retire off dividends/interest at some point. So it could certainly be a life changing amount of money if you are smart about it.

Author:  FarSky [ Thu Mar 08, 2012 9:56 pm ]
Post subject:  Re: Public assistance pulled from lottery winner

Quote:
Asked if she had the right to the public assistance money, Clayton answered, "I kind of do. I have no income, and I have bills to pay. I have two houses."

o.O :psyduck:

Author:  Talya [ Thu Mar 08, 2012 11:01 pm ]
Post subject:  Re:

Dash wrote:
So funny. People really have no concept of money. A million dollars, while certainly nice to come into, doesnt mean all that much. If I won a million today, I'd be going to work tomorrow just the same.

She ended up with a bit more than half a mil. Bought a house, I'd love to know what she spent there. Will be dead broke again within a year sadly.


Not saying you're wrong, I wouldn't quit work myself, but a frugal person can live a long, long time on a million dollars. Hell, $50,000 a year is a mere 5% return. You should be able to do better than that fairly safely, with the right investments.

This woman? Not so much.

Author:  Dash [ Thu Mar 08, 2012 11:36 pm ]
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Oh I agree, if you are single and want to live a simple life then yes 1 mil can do it.

If you want a modest home, car, internet, good food, insurance, a new PC to run your video games etc, then money goes fast.

Most of us here are looking at another 40+ years to support. If I was 65 that would be another situation entirely. Also note I live in an expensive area of the world, ymmv.

Author:  Talya [ Thu Mar 08, 2012 11:46 pm ]
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well, if you you were really conservative with investment, and only got $50k a year indexed to inflation indefinitely, you'd be pulling in $4200 a month. (While your after-tax is lower, capital gains and dividends are taxed significantly lower than employment income. Here in Ontario you'd pay 25% less tax than someone earning that as income, making your 50k a year more equivalent to 62k a year.) A single person can live quite comfortably on that in most parts of North America. None of those amenities would be lacking. You would be driving a 3 year old Toyota instead of a brand new Lexus, but that's not a hardship, by any means.

With a family, suddenly everything changes. Not that you'd need a good job now, though. You'd still need a job.

Author:  Corolinth [ Fri Mar 09, 2012 3:09 am ]
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If I had a million dollars, I'd go to work turning it into twenty million.

Author:  Talya [ Fri Mar 09, 2012 8:07 am ]
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Well, yeah. I'm just sayin', it's enough for someone to live on for the rest of their life, if handled well. (Not "if they live like ascetics," but if the money is handled well.)

Author:  Corolinth [ Fri Mar 09, 2012 12:21 pm ]
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Money makes more money. It's like a mommy dollar and a daddy dollar get together and make baby dollars.

Author:  TheRiov [ Fri Mar 09, 2012 1:55 pm ]
Post subject: 


Author:  SuiNeko [ Fri Mar 09, 2012 1:58 pm ]
Post subject:  Public assistance pulled from lottery winner

Corolinth wrote:
Money makes more money. It's like a mommy dollar and a daddy dollar get together and make baby dollars.


How?

Author:  Hopwin [ Fri Mar 09, 2012 2:15 pm ]
Post subject:  Re: Public assistance pulled from lottery winner

SuiNeko wrote:
Corolinth wrote:
Money makes more money. It's like a mommy dollar and a daddy dollar get together and make baby dollars.


How?

You have to put them in a room together and show them panda porn.

Author:  Kirra [ Fri Mar 09, 2012 2:20 pm ]
Post subject:  Re: Public assistance pulled from lottery winner

I saw this on the news the other night. Her ex-boyfriend said she went on an insane shopping spree after she won....even bought him a 3k car! She is very generous ;)

24 years old, 2 kids..no job. She is struggling to make ends meet and feed her kids, so she says. Ironic that she was able to find enough money to buy lottery tickets before she won, oh yea....she was getting food stamps then, so there was money for lottery tickets.

:roll:

Author:  Corolinth [ Fri Mar 09, 2012 4:51 pm ]
Post subject:  Re: Public assistance pulled from lottery winner

SuiNeko wrote:
Corolinth wrote:
Money makes more money. It's like a mommy dollar and a daddy dollar get together and make baby dollars.
How?
Investments yield additional income. A million dollars is plenty enough to cut up into chunks to pay into various investments. You can afford to take a $100,000 and make stupid risks with it, on the grounds that another large chunk is placed into responsible investments. Most of those stupid risks are going to fail, but all it takes is for one of them to pay off. With a large chunk of your winnings in stable investments, those are risks you can afford to make.

If I won a million dollar lottery payout, the first thing I'd do would be to purchase a subscription to the Wall Street Journal. It's portfolio time.


Author:  Dash [ Fri Mar 09, 2012 6:25 pm ]
Post subject:  Re: Public assistance pulled from lottery winner

Kirra wrote:
I saw this on the news the other night. Her ex-boyfriend said she went on an insane shopping spree after she won....even bought him a 3k car! She is very generous ;)

24 years old, 2 kids..no job. She is struggling to make ends meet and feed her kids, so she says. Ironic that she was able to find enough money to buy lottery tickets before she won, oh yea....she was getting food stamps then, so there was money for lottery tickets.

:roll:


Yeah this is exactly what I mean. She thought "Yeah I'm a millionaire!" and spent like a fool. 2nd house, cars, shopping spree. Meanwhile she had a bit over 500k to begin with and suddenly it's "Derp where's mah million?"

Author:  Talya [ Fri Mar 09, 2012 6:35 pm ]
Post subject: 

I read somewhere that the majority of lottery winners, even those who win tens of millions of dollars, have none of it left within a decade.

Basically, what it boils down to, is that if you can't do the very basic math on lottery odds vs. the cost of playing, you are unlikely to understand finances all that well.

Author:  Squirrel Girl [ Mon Mar 12, 2012 9:10 am ]
Post subject:  Re: Public assistance pulled from lottery winner

If one was planning to live off of the interest of a lump sum of money indefinitely, to rule of thumb is that you take out only 4% per year.

$500,000 x 0.04 = $20,000.

In my mind, this is not much to live on, particularly with 2 children.

Be that as it may, as was said before, most winners of the lottery do not grok this financial truth.

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