Your annual income is estimated to peak when you are between 44-55 years old.
After that, you'll likely see your income drop steadily until you retire. This is the fate of the average American.
It's not because your skills decrease or your value goes down. It's because companies limit the new opportunities they give you. Instead, they focus on bringing in new people to do new things.
They assume you are at your peak in that age window, so they stop seeing your potential. They keep you at that income and slowly decrease it over time.
It's kind of like buying milk at the grocery store.
My mom always looked at the 'best by' date before buying a gallon of milk.
She would look for the milk with the furthest 'best by' date, and buy that one instead of the others.
I never understood why she trusted some stamp on a jug, especially when the date was never that reliable. We had milk go sour days before it was supposed to be 'best.' And we had other milk that still tasted great days after the stamp.
Employers see people as goods on a shelf; like we have a 'best by' date.
Your job title is like your 'packaging.' Your resume is your 'nutrition facts.' And your salary is your 'price-tag.'
When I turned 40, the law of averages said I was approaching my 'peak.'
But there is one small problem…
I feel like I'm still getting better with age!
And I intend to earn more money every year along the way.
I set a personal goal to earn $250,000 in one year before I turned 50.
In the middle of earning my MBA I was working on an econ project with my friend Mark. Mark was (and still is) a wealth manager with Fidelity. He lives in the world of markets, averages, and likelihoods.
So when I told him my money goal he did what any good friend would do - he told me the odds were not in my favor, wished me good luck, and then bought the next round of beers while we pressed on with our econ project.
Not long ago, I called Mark to tell him I hit my income goal 10 years ahead of schedule!
He was beyond excited for me!
And he was also full of questions - how did I do it, how did it happen so fast, what was I going to do with the money…
And he of course offered to manage my money for me with Fidelity! Hahaha.
I'm a far cry from being 'rich' or 'famous.' Doctors and Lawyers can make salaries in the millions before they ever hit 40.
I'm just another hard-working guy with a family I am trying to feed.
But I also know that regardless of what the law of averages says about you,
Your best income years are still ahead.
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