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A Look at Publishers Clearing House’s “$5,000 a Week For Life” Giveaway
By JLP | January 7, 2008
Publishers Clearing House is currently advertising a promotion where people can win $5,000 per week for the rest of their lives. Sounds pretty good doesn’t it? But, how good is it really?
Lets take a look at the numbers using my age (38) as the basis for the calculations. If I’m lucky enough to live to age 100, that’s about 62 years from now (or 3,224 weeks). If I were to win PCH’s prize, I would receive $16,120,000 in income over my lifetime:
WOW! The only problem is, I left out two VERY IMPORTANT details:
1. Taxes
2. Inflation
The IRS wants their share and will withhold 25% of each check. So, from day one, you’ll be receiving $3,750 per week. In addition to that, the $3,750 per week stays the same dollar amount over your lifetime. Everyone knows that a dollar today is worth more than a dollar at some point in the future due to inflation. So, that means that inflation is going to eat into each of those $3,750 checks. In ten years that $3,750 will only have the purchasing power of $2,778 in today’s dollars. Using the numbers from the example, my last check (check #3224) would only be worth $583.46 (and that’s assuming 3% inflation. If inflation runs higher than that, the money will be worth even less).
Of course, there are ways around some of this. For instance, let’s say you are able to save 10% each week ($375 per week) for 42 years. During this time, you invest your weekly saving in an S&P 500 Index fund (like the Vanguard S&P 500 Index). Assuming a straight-line 8% return (.15% per week), at the end of 42 years, you would have an additional $6.77 million, which would be worth approximately $2.8 million after inflation.
So, it would definitely be to your advantage to save some of your winnings.
It’s fun to dream about winning the lottery but the winnings are never as good as they make them out to be.
Topics: Financial Math Basics | 61 Comments »
January 7th, 2008 at 3:18 pm
Don’t forget, the tax brackets will also adjust over time at about the same rate of inflation. That means you may eventually be in a lower tax braket.
That said, I could very easily make due for the rest of my life on that kind of salary!
January 7th, 2008 at 3:31 pm
Another way to look at is is to find the present value of an annuity that generates that payments stream. The online annuity calculator I use only goes down to age 40, but it says that a 40 year old male can get income of $21,667/month (=$5000/wk) for life with a single premium of $4,552,000. That is the value of the prize.
January 7th, 2008 at 4:57 pm
I agree, that’s terrible! Only ~3700 per week! How could I possibly be expected to live / give / save with a weekly income like that?
January 7th, 2008 at 7:25 pm
“but the winnings are never as good as they make them out to be”
It’s still free money.
January 7th, 2008 at 7:39 pm
I guess it’s time to cancel all those crazy magazine subscriptions I ordered through them thinking I would get more chances to win!
January 7th, 2008 at 10:12 pm
Heck, I’d take an extra $500/week. Wow. That’s actually about what we live on anyway. I’d probably invest about $1500/month in VFINX and the like and be so happy!
January 8th, 2008 at 11:20 am
This is just another reason to love living in Canada. No taxes on winnings.
January 8th, 2008 at 5:14 pm
Traciatim Says: This is just another reason to love living in Canada. No taxes on winnings.
I live in the USA, and I’ve never been taxed on any winnings.
January 9th, 2008 at 6:47 pm
So what happens if the winner lives for hundreds of years or more, as transhumanists anticipate?
January 11th, 2008 at 6:09 am
I’m going to be the winner, and whatever weekly winning I get will help me out no matter how much it is.
January 11th, 2008 at 11:39 pm
If i’m the winner my weekly winning will still help me out a great deal and then i can say i just won (what ever the winning is) from pch now i know it’s real.
January 17th, 2008 at 9:25 pm
Whatever the amount I win, and I am going to win, it’s a whole lot more than I live on now.
January 21st, 2008 at 2:37 am
If I’m the $5000 weekly winner no matter what I receive after taxes, It will still help me out a great deal, and then I can say (with great joy) I’ve just won $5000 a week from Publishers Clearing House now I know it’s real. (then tears of joy will come and scream)
January 22nd, 2008 at 2:04 pm
If I am a winner of $5000 a week for life I will be able to pay off my credit card debts. I would also be able to help
my daughter pay for my grand-daughter’s Wedding.
Then I can shout it from the roof top I won $5000 a week for life.
January 23rd, 2008 at 10:23 am
$5000 per week is more than I ever comtemplated.
IS THERE ANY CHANCE TO RECEIVE ONE OF THE $5000 PER WEEK.
It would be a lifesaver to me.
January 23rd, 2008 at 8:16 pm
If I am the winner I would give thanks to our almighty god first and then my friends Publishers Clearing House for my blessing. It doesn’t matter what I receive after taxes. I would then pay off all my debt, and with great joy and pride move out of my apartment into my beautiful blessing home. (House)
January 25th, 2008 at 4:35 pm
i just mail my ticket today i think it was the last entry for feb 29 2008.but if i won i would fix my house i just bought and save for my kids future.
January 30th, 2008 at 6:51 pm
Thank you Lord for all the gifts you have given me throuout my 56 years….Please continually direct my path and be with me through conflicts and the great God days….
February 2nd, 2008 at 1:46 pm
Has anyone ever won this prize?
February 3rd, 2008 at 2:09 pm
Well I pretend that I have already won and make plans as such. It makes dealing with day to day like much easier when it is so hard to get by with a family. I would take 3750 a week over nothing anyday.
February 3rd, 2008 at 10:09 pm
I would want to give a large ddonation to a charity of my choice
February 4th, 2008 at 12:39 pm
I am a widow and I could use that $5000 a month Yvonne
February 5th, 2008 at 12:08 pm
As a mother of 5 and unemployed, if am the winner I would thanks God first for his power and then the Publisher clearing house for my blessing. And whatever the weekly winning is it will help me out. I can expect a better life for my 5 kids.
February 6th, 2008 at 4:47 pm
I could us the money I am a widow and the money would really help me. Thank you Yvonne Sarver
February 8th, 2008 at 12:41 pm
God is able to be a place of refuge in troubled times which I am experiencing now. But if I won the money I would give all praise and glory to God and JESUS my Lord and saviour . I work in a ministry that doesn,t ask for offerings the money would be a blessing
February 10th, 2008 at 11:16 am
I think any amount of money is better than nothing,
think before spending .save when you can and enjoy
what you been giving.
February 10th, 2008 at 6:08 pm
I am retired,I could really use that money,I would perfer a lump sum. Pay off my mortgage, credit cards,help my family,take a well needed vacation give a good portionto my Church and my other charties.I would just love to help people. Thanks, Emma Ussery
February 17th, 2008 at 7:05 pm
My husband and I are retired, love camping and meeting folks at campgrounds…we travel within 100 miles of our home since fuel is so high, would love to have extra money to pay off mortgage and help others that are in need…Thanks for your consideration of us…Millie
February 17th, 2008 at 8:50 pm
Money does buy you security when you are retired and living on a fixed income, this prize of $5,000 weekly would be a godsend to most people. We could get ourselves get out of debt, help our children pay off their college loans and help them with downpayment on homes, help our friends that need an extra helping hand periodically and also take a family vacation together. It would be a blessing from God and I would be most grateful and would donate extra toward their building fund. At my age I would prefer a lump sum but believe me, any amount paid in any manner would be just fabulous and very welcomed!!! It is a wonderful that PCH is giving all of us an opportunity to participate! Exciting!!!
February 18th, 2008 at 9:16 am
I am so happy and grateful now that I can say: “I just won 5,000 a week for life from PCH Now I know it’s Real!” I believe it!! Thank you God and the Universe for my abundance and bleassing of prosperity!
February 19th, 2008 at 11:19 pm
pch thank you for the chance to win the 5000.00 a week. all of us have the same chance to win. god bless and good luck. pr.
February 20th, 2008 at 7:18 pm
Good Luck!!!! You know they still have swamp land For Sale.
February 20th, 2008 at 7:44 pm
Heck! 1,000 a week is good enough for me!
February 21st, 2008 at 9:44 am
I’d just like too win i’ve been into pch since the 70’s an still havent done nothing but spend money i’d love too win one day
February 21st, 2008 at 10:42 am
HEY, $2000 A WEEK FOR LIFE IS GOOD ENOUGH FOR ME
February 21st, 2008 at 7:51 pm
I will just be so, thankful.Then me and my three children can live our lives a bit more at ease.
February 22nd, 2008 at 5:32 pm
funny how you read that you people would thank god …when I am 100% convinced that like that death row inmate, finding god after something good or bad has happened, most of you would be bumping into Jesus everywhere, my kids would be taken take of meaning their NEEDS for me, I would want only a roof over my head and food a small TV, a good used computer and a dvd box set of “House” the rest of it you all can fight god over…come to my house and each week the money I don’t use Ill throw on my lawn
February 22nd, 2008 at 5:43 pm
Ok my girlfriend said I sounded mean ,,,sorry I was just making a point that money and or the promise of being wealthy makes people think and act differently I would not act that way I would take care of my needs, really my wants are far to little to worry about, My children and their welfare,my family ( sisters),thats what I would do if I won..oh yeah and thank god..( there will be tons of my friends in hell so I am not worried)
February 23rd, 2008 at 8:03 am
All of you are saying I “would” thank God. Thank Him anyway, whether you win or not. Then you all will be winners.
February 24th, 2008 at 7:49 am
I will not change if I won. It would just pay my bills. I have become ill and had to retire from my job. I have become disabled after back surgery. and coming down with fibromyalgia.
I would just feel blessed if I won. I would be able to stay in my home. I have always been able to pay my bills. I have been getting help from a plan where I taught high school but it ends in four months.
Which ever way, who ever wins they are blessd by God.
God bless you all and good luck.
Nancy
February 24th, 2008 at 10:39 am
I JUST WANTED TO SEE IF I WON $5,000 A WEEK FOR LIFE.
February 24th, 2008 at 11:21 am
BRING THE CHECK ASAP!
February 24th, 2008 at 11:43 am
Looking forward to the 29th. Good things can happen – I rehearsed looking in mirror “This is really true – Publishing Clearing House 5,000.00 for life – Thank you so much, I won – I won”. Waiting to get the results.
February 24th, 2008 at 12:04 pm
I absolutely do not mind that if I were a winner to give IRS 25% weekly. Bring it on!!
May 20th, 2009 at 3:10 pm
I'm 82, have COD, do oxygen 24/7, have to live with daughter and family,
I do as much around the house as I can. I pray each day to my Father and Jesus. I live on a fixed income, and my medicine is out of this world. If I win-
I would give to the church for God's work, and try to help as many as I can.
May 26th, 2009 at 2:50 am
I sure could use the money. I lost my job and so did my soon to be wife..well…… lets hope soon to be wife with no jobs now its hard to even take care of all of are kido's. I just hope PCH will be able to grant me this wish
May 26th, 2009 at 1:41 pm
I so look forward to winning $5,000.00 a week for life to get out of the financial mess I am in. This would so help me right now since I am unemployed.I also need to help some sick and dying people in my life.
May 26th, 2009 at 1:44 pm
Winning this $5,000 a week for life would truly get me out of the financial mess I am in.I would also help some very valuable people in my life who are suffering with there health.
May 31st, 2009 at 3:50 pm
I am an ederly widow who suffers from Lymphoma and the money would help so much. I would be able to hire some help so I may stay in my own home.Thank You Caroline
May 31st, 2009 at 6:03 pm
How do you know who actually wins? I have been submitting for over 30 years and have never found out who actually wins. I can't be that unlucky that after 30 years of entering, never to have won so much as an answer to who actually wins. I also don't understand how I know that I've actually gotten my entry in, on the internet. It's alot more difficult to know whether or not you actually got my entry. I keep getting more entries.
June 3rd, 2009 at 2:56 pm
Do you know anyone who has won
June 5th, 2009 at 4:16 pm
IM NOT THat lucky to win something as nice as that
June 7th, 2009 at 1:46 pm
Who couldn't use $5,000 a week right now. Maybe we could go to Paris and have a date night for $30,000.00.
June 7th, 2009 at 5:19 pm
I have tried to win for over two years and there has still been no luck for me.I am really in a big financial situation right now and i hope one day soon i stumble up on that 5,000 a week for life.
June 7th, 2009 at 7:27 pm
still don't understand what to search for!!!!!!!!
June 12th, 2009 at 12:17 pm
Worked 37 years in a mill and they closed the doors. I am 55 years old and like alot of other people in this world I am lost! This money will realy help my family.
June 14th, 2009 at 5:39 pm
thankyou for giving me a chance
June 25th, 2009 at 1:14 am
I could help my family out, and get nice things for my grandchildren.
Marie Grant
June 25th, 2009 at 7:37 pm
I have entered these sweeps sencs 1989 and haven't won a thing, I think its about time that I won something.
July 1st, 2009 at 11:58 am
Regardless of how much money received each week, every "little" bit would help. At age 75, it would be nice to enjoy life without worrying about making ends meet.
July 6th, 2009 at 3:33 am
i have been with PCH a number of years, and have enjoyed the items I have purchased, and now I would enjoy winning the sweepstakes. I would like to give to our church, and to the BIBLE CAMP, JOHN L. HARMS