Introduction
A topic that many people are confused about is the difference between wealth and income. In short, wealth is what you have, income is how what you have is changing.
What is Wealth?
Your wealth is your cash, your real estate, your books, etc. If you imagine a giant bucket that is filled with all your stuff, the bucket’s contents are your wealth.
What is Income?
Your income is the cash, property, etc. that is added or subtracted from your wealth. If you imagine a giant bucket that is filled with all your stuff, the bucket’s contents are your wealth, and the stuff added or removed from the bucket is your income.
Relevance
The two concepts are completely disconnected. It is possible to have a lot of wealth and to have a low income, or vice versa. When creating a personal financial plan, it is very important to not conflate the two ideas.
Investment Fee Structure
| Rate | Assets Under Management |
| 1.44% | Below $125,000 |
| 1.00% | Between $125,000 and $750,000 |
| .85% | Between $750,000 and $1,250,000 |
| .80% | Between $1,250,000 and $1,750,000 |
| .75% | Between $1,750,000 and $2,500,000 |
| .70% | Between $2,500,000 and $3,250,000 |
| .65% | Between $3,250,000 and $4,250,000 |
| .60% | Above $4,250,000 |
A single rate is applied to the entire account. So a person with a $750,000.01 account pays less than a person with a $750,000 account. I will waive personal tax return fees for accounts over $1 million. For accounts that are above $5,250,000, we’ll need to discuss a custom rate.
As I’m writing these to help my readers, I would be very appreciative of any input in regards to what I should write next. If you want me to write about a particular topic, please contact me. Please contact me if you would like to submit a post to my blog.
If anything that I mentioned above interests you, please consider downloading my free e-book. The book contains my thoughts on investment management and some information that I think everyone should know. You can also download it below.
E-Book Download
Questions for the comments
Did my explanation make sense? Do you agree or disagree with what I said?
