PHILADELPHIA, PA, August 28, 2013 /24-7PressRelease/
-- As investment management professional and president of Kabarec Financial Advisors in Chicago, Mike Kabarec is well aware of America's concern over wealth disparity. While the controversy surrounding the top "one percent" of earners in the United States has many citizens calling for economic reform; for instance, placing higher taxes on income. However, according to Kabarec and a recent report unveiled in a recent CNBC article
, the wealthiest citizens may get most of their wealth from other areas apart from income alone.
CNBC reports, "Much of the debate over taxing the wealthy focuses on taxing giant salaries. But a new study from the nonpartisan Tax Policy Center found that the real money for the wealthy is made from investments and business income--not compensation. The paper, from Joseph Rosenberg, takes a broader definition of income. The so-called 'Expanded Cash Income' includes retirement and healthcare benefits, retirement income, tax-exempt interest and other add-ons aimed at providing a more accurate picture of the nation's income distribution."
responds, "While somewhat simple, this report is very important for all Americans to review, as it helps break down just how wealth is built. The new statistics show that many rich citizens have earned that wealth in other ways apart from income. Although criticism of wealth is likely to always continue, it is important for those looking to build wealth to observe these figures and compare them to their own expanded income."
Illustrating the sentiments and observations of Mike Kabarec, CNBC explains, "The results show a stark contrast between the one percent and the rest. The population as a whole earns 64 percent of its expanded cash income from so-called 'compensation,' basically a paycheck from a company. But the top one percent earns only 39 percent from compensation. It gets 24 percent from business income and 29 percent from investments. The top 0.1 percent is even more reliant on investments, with 35 percent of their income from investments. In other words, the richer you are, the more likely you'll make your money from investing or owning a business."
According to Kabarec, while the figures are important to break down financial statistics, what may prove most important is that some wealthy individuals should not necessarily be attacked for their ability to use strategy and determination to build assets. CNBC explains, "[These statistics are] not to imply that the wealthy are just living off passive income, or that they're not working as hard as the everyday America. Business owners, in fact, often work longer hours than full-time employees.
"These figures may help encourage those looking to build wealth to seek out new opportunities for revenue other than compensation alone. As an investment management professional, I strongly believe that a strategic, diversified portfolio can help individuals grow their resources a significant amount. Those who are not inspired to invest may find themselves seeking new opportunities as entrepreneurs as well, as business ownership continues to play a role in expanded income," Mike Kabarec concludes.
Mike Kabarec is a trusted investment management professional who carries more than 30 years of experience in this challenging career field. Throughout his professional history, Kabarec has gained strong insight into what skills and knowledge is necessary to perform tax management, investment management, wealth building services, small business development and retirement plans. Today, Kabarec relies on his proficiencies in these areas to serve as President at Kabarec Financial Advisors, Ltd.--a Chicago-based investment management, financial and wealth advisory firm that has existed since 1982.