We’ve Moved! 6121 Excelsior Blvd. St. Louis Park, MN 55416

Does Income Predict Net Worth?

High income is not always correlated with a high accumulation of wealth. The difference often lies in the income-earner’s level of spending versus saving, but other traits may contribute as well. It’s not uncommon to hear about millionaires who end up penniless and humble workers who diligently save long term to amass wealth. For example:

  • Oseola McCarty, an African American woman born in 1908, began a 79-year career of laundering clothes by hand. Saving diligently from the age of eight, she retired in 1995 with $280,000 in the bank, promptly donating $150,000 of it to fund scholarships for worthy but needy students at the University of Southern Mississippi.
  • One couple saved millions while working in the airline industry with a combined salary of $115,000.
  • Former boxer Mike Tyson, who, at his peak, was earning $30 million per fight, lost most of his wealth due to lavish spending, a divorce settlement and back taxes.

Intelligence, social skills, health and motivation are all traits that could determine someone’s net worth. In some cases, high net worth can also lead to a higher level of income. For instance, family wealth could play a part in a child receiving a better job. Someone who is already wealthy may also have increased confidence in pursuing new job opportunities.

It stands to reason that the older we get, the more we tend to accumulate assets that are not necessarily associated with our level of income. For example, years of saving, home equity appreciation and investment compounding all contribute to our net worth. More than 60 percent of households headed by someone age 65 and over have at least six-figures of wealth; more than 10 percent are into seven figures.

Share This Article

Get the latest retirement news today!

Subscribe Now

  • This field is for validation purposes and should be left unchanged.

Pick your topic or keywords

Similar Posts

Getting to the Truth: How Strong is Social Security Anyway?

The number one news headline grab this month isn't the Kardashians or Donald Trump. Nor is it Spieth's distressing loss at the Open Championship by…

Continue Reading
Secured Retirement Radio: Probability Investing vs. Safety First

Blog post written by Dale Decker We all have different tolerances for risk. Some people prefer to go big and climb Mount Everest. Others are perfectly…

Continue Reading
Cary Grant’s Retirement Income Checklist

“You never miss the water until the well runs dry.” His Girl Friday (1940) – Walter Burns (Cary Grant) In the 1940’s movie His Girl…

Continue Reading
Ryan Keapproth

Ryan Keapproth

Retirement Planner

Ryan is dedicated to serving clients to achieve their retirement goals. Ryan’s holistic approach centers on wealth management strategies with a focus on income planning throughout retirement. As a Financial Advisor, Ryan is an Investment Adviser Representative (IAR), life and health insurance licensed and a Certified Tax Preparer. Ryan is a graduate of the University of Minnesota, with an Accounting and Finance major.

Ryan is a lifelong Minnesotan originally from Woodbury and currently residing in Bloomington with his wife, Riamae, and their rescue Terrier Beagle mix, Douglas. He and his family are avid travelers in their free time. Ryan enjoys playing golf and poker, and describes himself as a major foodie enjoying new restaurants around the cities whenever possible. He is a sports fan especially when the Vikings and Timberwolves are playing.