Michael Kitces writes about the importance of establishing good spending habits early in life, focusing on new studies that show that income growth generally slows when individuals are in their 40s and turns negative in their 50s. His article begins as follows:
\While many of today’s workers may ultimately be in the workforce for 40 years or more, several recent studies have revealed that income growth does not occur steadily throughout that working career. Instead, the majority of our raises actually come in our 20s and 30s. By our 40s, income growth slows dramatically, and in our 50s income growth typically turns negative (at least on an inflation-adjusted basis)! Accordingly, the reality is that for those in their 40s and 50s who are behind on retirement, there
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.