The chart below is a good but generalized way to visually see how income and expenses are related over a lifetime. While expenses gradually trend upwards due primarily to cost of living increases and maintaining a good quality of life, the income trend line is triangular. We reach our peak earning years in our 40s, only to see a dramatic drop when we stop working.
To prevent a dramatic drop in income, it is crucial to possess income-bearing assets — stocks, real estate, businesses, etc. — to supplement any retirement income.
Note: Please read this site's 24Hour Journal disclaimer regarding finance and investing information.
TIP: Balance income and expenses over a lifetime
TIP: Balance income and expenses over a lifetime
TIP: Balance income and expenses over a lifetime
The chart below is a good but generalized way to visually see how income and expenses are related over a lifetime. While expenses gradually trend upwards due primarily to cost of living increases and maintaining a good quality of life, the income trend line is triangular. We reach our peak earning years in our 40s, only to see a dramatic drop when we stop working.
To prevent a dramatic drop in income, it is crucial to possess income-bearing assets — stocks, real estate, businesses, etc. — to supplement any retirement income.
Note: Please read this site's 24Hour Journal disclaimer regarding finance and investing information.