He’d be a multimillionaire right now.

(Yes, I know after taxes he’d net much less than $260,000, but the point remains the same- he could’ve lived on a lot less)

Yes, it would have been wiser to invest his money but he had no reason to believe he wouldn't be getting the payouts for the rest of his life.

It was a company. Companies go broke.
Please note I said possibility, not likelihood

As an unsecured creditor without a seat at the table, he will be the first non-equity holder to take a haircut.

Don't know if he could have found an early buyer for the annuity to cash it out. Once PCH's credit rating started to drop, then he was done.

Would like to see how well the company was managed. I suspect excessive executive compensation and unjustified dividend payments might have drained the company as well (still the headwind was strong against it).

These "winners" should have seen this coming and reduced spending and put money aside for awhile now. Magazines have been struggling for 10-20 years now.

I mean, one that you bought not that you won in a contest?

gathered from what he was selling, he just assumed that the party would never end. Oooops. On 260k/annum, I could have supported myself and at least 4 friends nicely (none of us have extravagant tastes!), or been a great benefactor to various groups and causes dear to my very being.

He is a perfect example of all the stories I have read over the years about big lottery winners who are broke within a couple of years. Somehow, my sympathies are not engaged.

I can't really feel bad for the guy, if he had just taken some simple steps before hand.

a VERY large sum of money, depending on the size of said windfall. Being of a somewhat thrifty, frugal, nature, those plans do NOT include spending every penny !

on the lottery, or any sweepstakes, drawing, settlement, whatever.

as much money as possible upfront because the future promises of businesses and governments can't be trusted. They've demonstrated that over and over again in broken treaties, failed pension promises, bankruptcies and stock and bond swindles etc.

come in at the very least.

Consumers get the shaft by the market... as well as the blame from the self-righteous.

And I don't think it's right that another company is allowed to buy the name without paying the previous winners. The name's value is based on the winners.

This doesn't sound legal.

Make the execs of the purchasing company jointly and severally liable for all debts.

Better yet, get rid of bankruptcy entirely- with all executive officers of both old and buying entities being on the hook for any debts.

Corporations and the people who own/run them do not deserve forgiveness.

I believe it was a family on Long Island, NY. But this was really about the magazine business evaporating.

Thro 'em in the pen and make them sweep roads.

Harry Truman paid back EVERY SINGLE PENNY he owed after going bankrupt; anyone unwilling to do the same needs to be breaking rocks in the hot sun.

Medical debt, well there shouldn't be such a thing, of course; corporate debt? Let's see the CEO cleaning toilets for minimum wage for the rest of their life.

But if you're a fan of corporations screwing people with no consequences, why are you here?

from a 3rd party to pay out rather than financing it themselves. That said, I'm surprised at $5000/week all he has saved up is a trailer and jet skis.

You know how much your annuity is worth if you look to sell it on the open market.

Everything tsf touches dies.

those things one time, and remember alll sorts of little alarm bells going off in my head. But then, I am of a very cynical and suspicious nature anyway.

I remember when their mailer would come and we would place their stickers on things. I wanted to subscribe to all those magazines.

If I were to win an annuity like PCH, I would have instantly sold it to someone like J.G. Wentworth. 50% of something is better than 100% of nothing.

It wouldn't surprise me, they're probably in business together anyway.

I remember when buying iPhone applications “forever” was a thing, only for all those companies to revise their terms of service and demand payment after so much as a year or less. It’s usually written in their TOS they can do it, and, they often do.

The money isn’t yours until it’s in your bank account. Plan accordingly. Same with crypto, or, investment platforms like Robinhood.

Edit: It’s not even yours in your bank account. Fully, that is. Some banks will charge you for having a certain account type, or, for having a total below a certain amount. Check your accounts for corporate thievery.

when the republikkkan regime decides they are no longer worthy of receiving money that billionaires need.

are stealing.

Allow them to cancel or modify terms, there is no way that's legal.
This is how things like Luigi the happen.

(same people,more than likely), union contracts, pensions, etc., gone. I have not purchased a hostess product since. How many corporations conveniently go bankrupt when time to shell out for pensioners?

The corporate/billionaire game is rigged to screw us, legally, and in every other way they can, with no recourse.

To be clear though I think I got a Hostess fruit pie once in like the last 20 years.

As always...fuck billionaires.

These winners didn’t get the financial advice needed. With that much money, you need good financial and legal advice as well.

Investing a small portion of their proceeds weekly in just a simple S&P index ETF or mutual fund would have set them up for life. And they should have at least had a trust established for future generations.

And always take the lump sum. I’m sure PCH and others have small print disclaimers that guarantees are void in case of bankruptcy. And of course there’s really no way to sue. It would all be in arbitration. So they’re really screwed.