What is lumpy income?

Lumpy income refers to the earning pattern of individuals who receive the lion’s share of their earnings on just a few occasions, rather than spread out across a regular paycheck over time.

Lumpy Income earners may be:

  • Corporate executives who receive large annual bonuses and/or stock grants that vest at one time.
  • Business owners who take a smaller base salary to cover expenses and opt for less frequent profit distributions.
  • Professional athletes who receive large contracts early in their career, and retire from that career at an age younger than a typical retiree.

While lumpy income is common for these types of careers, most conventional budgeting, saving, and planning ideas are centered around consistent income and gradual increase—leaving lumpy earners with inadequate planning tools.

Our Expertise

Our advisors and support staff are specifically versed in corporate executive compensation plans, and we build relationships intentionally with experts who support business owners with the things they need for every stage of a growing business.

For lumpy earners, their greatest opportunities for creating generational wealth for their families are usually large and less frequent. At Itheric Wealth, we aim to make sure lumpy income doesn’t lead to periods of feast or famine, and to help lumper earners realize opportunities through diligent planning and execution.