Who Owns Whom?

Eric Park, an advisor with Steamboat Financial Group in Washington, Missouri, reminded me in a recent e-mail that as we go through life, we accumulate “stuff” to improve our standard of living. When we have just one car, we might have to share it with other family members. Getting a second car makes life better. A third car adds still more convenience. However, with each new car come taxes, license fees, maintenance, and maybe loan payments. Eventually, Park says, the added cost overcomes the added benefit. Then, we start being owned by our stuff.

I thought of his wisdom when presented with this client issue.

Q: Without her late husband’s pension, my client needs to reduce her expenses. The problem is that she’s weighed down by high-maintenance “stuff”–a big residence, a summer cottage, a boat, and an extra car. Although she agrees with the need to scale back, she can’t imagine living without these possessions because they’re associated with memories of her husband. I understand completely, but her savings will soon be gone unless she can simplify her life. How can I persuade her to take action?