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Schulfer & Associates, LLC

Income or Net Worth

By LouAnn Schulfer,  AWMA®, AIF®
Accredited Wealth Management Advisor®

Accredited Investment Fiduciary


If I were to ask you the question:  Which would you rather have, income or net worth? What would be the basis for your answer?  Income is the money you bring home on a regular basis.  Net worth is the value of your assets minus your liabilities.  To choose, you’d have to pick which you value more, your spending for today (income) or your security for tomorrow (net worth).  If you asked me, I’d have told you from the time before I became a Wealth Management Advisor, both.  Yet, as a wealth management observer, I find that most people tend to have one or the other, not really striking the balance between creating net worth while enjoying life.  Classic examples:  business owners or farmers often have net worth but not a lot of discretionary income.  Young and middle-aged professionals who’d entered their career making a high level of income often create a high level of spending and once the spending patterns are created, it is difficult for them to develop a discipline of net worth building habits. 


If your income were to cease, how long would your net worth keep you afloat?  It’s what you need to evaluate when planning your retirement if you wish to live on more than your social security and pension if you have one.  We want to find balance, but often times people define balance on a short-term basis rather than a long-term basis.  More on that next week.  But for now, how do you define your wealth?  By your income or your net worth?


LouAnn Schulfer is co-owner of Schulfer & Associates, LLC Wealth Management and can be reached at (715) 343-9600 or

Securities and advisory services offered through LPL Financial, a Registered Investment Advisor.  Member FINRA/SIPC