Recently I read an article on CNN’s Money site regarding what level of income it took to be in the top 1 percent of wealthiest families in the U.S. It was an interesting read, but I think the article missed the mark for many readers. Wealth and income are different, although not totally unrelated things.

Wealth is most appropriately defined as “the value of what you have in cash, investments, real estate, and perhaps the value of a business you own.” Income is the rate at which money flows into your household.

For those employed at a job or running a business it is possible to have a very high level of income – it took $429,000 to be a top one percenter in 2015 – but to have very little wealth. Wealth is the result of making more money than you spend and pay in taxes and then accumulating the difference in the form of savings or investment capital to be used to eventually generate income when you no longer wish to work.

If high income earners spend most of what they make and don’t take the savings and investment part of the process seriously, a lifetime of high income could yield little wealth and a retirement lifestyle that is below expectations. Starting early and consistently allocating income to investment is the best way to build wealth over time.

For those retired from employment, there is a closer tie between wealth and income. Obviously those who do a better job of accumulating and investing will have a larger pool of funds available to invest to produce income, hopefully providing the lifestyle they desire in retirement.

The CNN Money article did provide some more fun facts I’ll share with you here. It took $1.9 million to make it into the top 0.1 percent (the top 10 percent of the top 1 percent), and $9.5 million of income in 2015 to make the top 0.01 percent (the top 1 percent of the top 1 percent).

Of course, since these individuals are in higher tax brackets, they pay a disproportionate share of income tax as well. The top one percent on income earners will pay about 20 percent of the total tax collected by the IRS from individuals for 2015.

In summary, income doesn’t generally turn into wealth without a disciplined approach to savings and investment. Pay attention to your savings rate during your working years, and the reward of a great retirement lifestyle may be yours.

Tom Breiter is president of Breiter Capital Management, Inc., an Anna Maria based investment advisor. He can be reached at 778-1900. Some of the investment concepts highlighted in this column may carry the risk of loss of principal, and investors should determine appropriateness for their personal situation before investing. Visit www.breitercapital.com.