An old sweepstakes TV commercial once promised, ?Only Publishers Clearing House can make you so rich, so fast!?

But, as some unlucky winners discovered this year, the opposite is also true: Publishers Clearing House (PCH) can 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.

According to NBC affiliate KGW8 [1], Wyllie received an annual check for $260,000 every January. The money let him retire and buy a house on six acres in scenic Bellingham, Washington. But this year, the checks suddenly stopped. A few months later, Wyllie learned why: PCH had filed for bankruptcy without warning him or other winners.

Wyllie told KGW8 the turn of events ?feels like a nightmare,? made worse by the fact that he hasn?t worked in more than a decade and can?t find a job now. With bills piling up, he?s sold off big-ticket items like a jet ski and trailer, but still expects to lose his home.

For anyone who?s ever daydreamed about a life-changing win, 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.

That?s because ARB Interactive, which paid $7.1 million to buy PCH, announced it would only honor prizes won after it took over in July. For past winners still waiting on payments, The Wall Street Journal [2] noted they?ll ?have to seek payment from the bankruptcy estate.?

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. The company went 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.

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] 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 investment accounts and legal documents 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. In hindsight, the lump sum would have been the smarter choice at PCH. In 2019, Ricky Williams won the same $5,000-a-week-for-life prize as Wyllie but took the lump sum. He walked away with $3 million ? all collected before PCH went bankrupt.
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 earn tax-free interest or grow tax-deferred, so your money keeps working while minimizing the hit at tax time.
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 savings account and putting aside retirement money. That cushion can help if life throws you another curveball.
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. (YAHOO)

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