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An old TV commercial once promised, “Only Publishers Clearing House can make you so rich, so fast!” But, as some unlucky winners discovered this year, they can also make your fortune disappear just as quickly.
That’s what happened to John Wyllie, a 61-year-old Oregon man who won $5,000 a week for life from the PCH Prize Patrol in 2012.
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According to NBC affiliate KGW8 [1], he received an annual check for $260,000, which helped him retire and buy a house on six acres in scenic Bellingham, Washington.
But this year, the checks suddenly stopped after PCH filed for bankruptcy without warning him or other winners. Wyllie told KGW8 the turn of events “feels like a nightmare,” especially as he hasn’t worked in over a decade and can’t find a job now.
Wyllie’s story is a harsh reminder that easy money isn’t always forever. It’s a reality check that could strike anyone who finds themselves scrambling to offset the loss.
From bankable to bankruptcy
KGW8 reported that Wyllie is one of at least 10 winners still owed money they’ll likely never receive.
ARB Interactive, which paid $7.1 million to buy PCH, announced it would only honor prizes won after it took over in July. Past winners still waiting on payments, will “have to seek payment from the bankruptcy estate,” according to The Wall Street Journal [2].
Andrea Coles-Bjerre, a University of Oregon law professor, told KGW8 it’s unlikely those winners will be able to collect their winnings. They’ll be considered unsecured creditors competing for money that simply doesn’t exist.
PCH’s collapse followed a sharp post-pandemic [3] decline after going from nearly $900 million in annual revenue pre-COVID to just over $180 million last year. Analysts blame competition with online giants like Amazon, along with an $18 million Federal Trade Commission [4] settlement in April, for deceptive practices that tricked people into thinking they had to buy products to improve their sweepstakes odds.
The company filed for bankruptcy that same month.
Read more: How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
How to protect your financial windfall
The PCH saga is a cautionary tale for anyone who comes into a large sum of money — whether it’s a sweepstakes giveaway, a lottery win or an inheritance. Without a plan, that money can dry up faster than you think. Here are some steps to help protect your windfall:
- Keep quiet: Experts recommend keeping lottery winnings or inheritances under wraps to avoid unwanted attention. Some suggest setting up a revocable trust [5], also known as a “living trust”, to protect both your privacy and money.
- Build a legal team: John Jennings, president and chief strategist at ArchBridge Family Office [6], advises hiring both a financial advisor and an estate lawyer to get accounts and documentation in order before you collect your cash.
- Annuity or lump sum? If your winnings give you the option, talk to a trusted financial advisor before choosing between an annuity and a lump sum. Each has advantages and disadvantages, from taxes to the total payout. Advisor.com can help connect you with a financial advisor based in your area who’s suited to walk you through the decision.
Even better, all of their advisors are pre-vetted fiduciaries, meaning that they have a legal obligation to act in your best interest. After inputting your ZIP code, you can set up a free call with no obligation to hire to make sure they’re a good fit for you.
- Talk taxes and savings: Financial planner Rachael Burns told Forbes [7] a certified public accountant (CPA) can help design a tax strategy. A CPA may suggest putting money into accounts that can earn tax-free interest or grow tax-deferred, such as an IRA.
There are several kinds of IRA accounts, including traditional IRAs, Roth IRAs, and gold IRAs. Priority Gold offers the latter and is an industry leader in precious metals, offering physical delivery of gold and silver. You can also convert an existing IRA into a gold IRA with Priority Gold, as it offers 100% free rollover, as well as free shipping and free storage for up to five years. Qualifying purchases can also receive up to $10,000 in free silver.
To learn more about how Priority Gold can help you reduce inflation’s impact on your investments, download their free 2025 gold investor bundle.
- Pay down debt: As tempting as it is to splurge on a new car, house or some other big purchase, Forbes and other experts suggest wiping out debt first. That frees up your future income for investments and opportunities instead of interest payments.
- Think long term: Estate planning firm Trust & Will [8] recommends creating an emergency fund with at least six months of living expenses in a high-yield account and putting aside retirement money. The Wealthfront Cash account, can be a great place to grow your emergency funds, offering both competitive interest rates and easy access when you need funds.
With a Wealthfront Cash account, you could earn up to 4.25% APY on your uninvested cash for your first three months (0.50% APY boost on top of the 3.75% base variable APY) provided by program banks. That’s over ten times the national deposit savings rate, according to the FDIC’s September report.
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, you can ensure your funds remain accessible at all times. Plus, Wealthfront Cash account balances of up to $16 million are insured by the FDIC through program banks.
- Write a will: If you don’t already have one, draft a will and keep it updated. A clear, legally binding plan ensures your loved ones benefit from your wealth and helps avoid disputes over money when you’re gone. Ethos Wills & Trust can help you make a will and living trust online from the comfort of your own home in as little as 20 minutes. All documents created on the platform are vetted by experienced estate-planning attorneys — giving you complete peace of mind.
You can also make unlimited updates forever as your life changes, helping you secure your legacy for your loved ones. You can create a will starting at just $149 and a living trust from just $349.
Plus, if you’re not happy with the results, you can get a full refund within 30 days.
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[1]. KGW8. “Oregonians won ‘$5,000 a week, forever!’ from Publishers Clearing House. Then the company went bankrupt”
[2]. The Wall Street Journal. “A Disabled Veteran Was Getting Publishers Clearing House Prize Money. Then the Company Went Bust.”
[3]. Your Erie. “Sweepstakes giant Publishers Clearing House files for bankruptcy”
[4]. Federal Trade Commission. “Refund checks are in the mail for eligible Publishers Clearing House customers”
[5]. Money Wisdom. “9 Smart Moves for Lottery Winners”
[6]. ArchBridge Family Office. “What Should You Do After You’ve Won Powerball Or Mega Millions?”
[7]. Forbes. “How Not To Fumble A Billion-Dollar Powerball Bag”
[8]. Trust & Will. “The Smart Way to Spend Your Powerball Lottery Winnings”
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.