He Poured His Retirement Savings into a Business — and It Failed Spectacularly: ‘I’m Working Harder Than Ever.’
He regrets losing the entirety of his $180,000 retirement savings in a failed business venture.
Key Takeaways
- Bill Lewis, 58, lost his $180,000 retirement savings after investing it in a Nestlé Toll House franchise that he operated for four years.
- The franchise’s sales growth could not overcome the high costs of operating in a mall location.
- Lewis now drives for Uber and Lyft in the Poconos and works roughly 75 hours a week.
Bill Lewis didn’t expect to be driving Uber and Lyft seven days a week. However, when the 58-year-old former Wall Street broker lost his entire $180,000 retirement fund after investing it in a franchise, he had no choice. He now drives up to 75 hours a week in Pennsylvania’s Pocono Mountains to make ends meet.
Lewis recently told Business Insider that he spent more than two decades working on Wall Street, starting as a runner at the American Stock Exchange in 1989 before eventually becoming a broker. His career came to an abrupt halt in 2013, when he was laid off from his job due to automation.
After Wall Street, Lewis decided to go into business for himself. At the time, he had accumulated $180,000 in a 401(k). Rather than seek another traditional financial services role, he decided to use the money to become an entrepreneur.
Lewis invested his retirement savings in a Nestlé Toll House franchise, a retail dessert bakery business. He believed the franchise model would offer a clearer path than building an independent company because it came with an established brand and operating structure.
“I didn’t know how to run a business and thought buying a franchise would help because I could rely on the company’s structure,” Lewis said.
Struggling to make a profit
The business generated sales, but sales alone did not translate into a sustainable profit. Lewis said the location’s mall costs made it difficult to make enough money, even as the franchise posted strong year-over-year sales growth during its first year.
He operated the business for four years. By the time he shut it down, the financial results were bleak. Lewis said he earned less over those four years than he made from his first Uber ride, which paid $7.
“I definitely regret putting my retirement savings into the Nestlé Toll House franchise,” Lewis said. “That decision is the reason I’m working harder than ever now.”
Lewis believes he would be in a much stronger financial position if he had kept the money invested for retirement.
The franchise setback ultimately pushed him into the gig economy. Lewis began driving for Uber in 2017 and now also drives for Lyft. He has completed roughly 43,000 trips total to date, according to Business Insider.
Gig work strategy
Lewis told Business Insider that he earns around $75,000 a year from Uber and Lyft. That figure reflects an intensive schedule and highly selective strategy for accepting rides.
Despite the workload, Lewis said flexibility is a major reason he remains in gig work. “If something happens at home, I can stop driving,” he said. “If my brakes need repairs, I don’t have to call a boss.”
Lewis now targets rides that yield at least $30 an hour. “I’ve learned how to earn a living doing it,” he added.
