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.
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