Page 50 - Ultimate Guide to Estate Planning

Keeping up with the Joneses.
The next stage, from age 35 to 40, is slightly
less risky to distribute wealth but still has its
dangers. I refer to this as “ keeping up with

the Jones' stage,” where assets are
accumulated that might become liabilities.
Assets like vacation properties, big homes,
boats, and the expense of private education
for grandchildren become liabilities. During
the keeping up with the Jones' phase, the

problem becomes whether the wealth that is
being used to accumulate assets will convert
to liabilities in the future. In other words, will
the cost associated with maintaining, paying
taxes (i.e. property tax), insuring, using, and

repairing these “toys” force our loved ones to
work harder than is necessary in their late
40s and early 50s?

Additionally, when people in their 40s decide

to downsize rather than keep up with the cost
of repairing “toys,” they can be confronted
with peer humiliation or embarrassment.
Downsizing in your 50s has become socially
acceptable but in your 40s it conjures up

questions among friends, family members and
peers relating to financial failures or living
beyond one’s means.

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