How one man amassed $70 MILLION without ever earning more than $14,000 Special Delivery: What can brown do for you?
Hello there,
This week let’s study Theodore Johnson, who famously never earned more than $14,000 annually as a UPS employee, but amassed $70 million by the time he was 90 years of age.
Now 14,000 in 1952 was a vice president of industrial relations’s salary if you can believe it. I don’t know if they consider that C-suite but it’s pretty impressive either way.
It was equivalent to about $140,000 today. But he worked up to that role and salary over 28 years with UPS.
How did he earn so much money by 90?
The power of compound interest.
Theodore invested 20% of his income year after year begrudgingly at the advice of a mentor. It’s stated that he didn’t think he could afford to live off what was left over but learned to make some adjustments.
He bought UPS company stock with every paycheck.
He retired, it was worth $700,000.
As the company grew, and as a retiree he watched it grow to around $70 Million.
38 years (during retirement) $700K to $700 Million = x 100
Looks like he made a hell of a decision to invest in UPS along the way.
The big picture is he made a commitment to invest 20% of his income, and kept it, even though he didn’t want to or think he could.
And he learned to live frugally.
And patience.
And let compounding do its thang.
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He was retired more than he worked, and the money kept growing and growing.
What he achieved was amazing, but no miracle. His highest salary was equivalent to $140K today, not astronomical. From this, he was able to leave an inspirational legacy. Of course, he set up some trusts and left his family in great shape but he also donated half his fortune to education.
He and his wife set up a charity that awards scholarships to students who cannot afford or qualify.
A few lessons:
I hope you share the feeling that this was a cool story, and maybe even got some inspiration from it. It’s not that he invested in UPS. He had a commitment, a plan, he stuck to it. It paid off. Bigly.
Time was on Theodore’s side. But even if you haven’t got serious yet or you had a little setback, we can get back on track.
You might already be set. But if you’re not sure about it, do yourself a favor and get a second opinion. If you know your nest egg is a little bit of a fixer-upper right now, I’ll help ya with the rehab or point you in the right direction (all you have to do is reach out).
My best,
Chris Kaden
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