Working with seniors and their families, I always hear people struggling with how much they should spend on relocation or anything else because the overwhelming concern is saving enough to take care of themselves in the late years.
I think that’s why the “Die with Zero” Rule is so interesting.
A recent Kiplinger article points out that over the next two decades, an estimated $90 trillion will pass from older generations to heirs. But hedge fund manager Bill Perkins argues that what’s really being left behind isn’t just money—it’s trillions in unlived experiences.
In his book Die with Zero, he suggests that people should maximize life experiences while they can still enjoy them. While many retirees hesitate to spend their savings risking eventually running out of money, Perkins believes this mindset causes people to miss out on life. His philosophy is simple: Spend money intentionally—on yourself, loved ones, or charity—while you’re alive to create meaningful experiences.
With the “Die with Zero” philosophy, the key is balancing health, time, and money at different life stages:
- In youth: You have time and health but little money.
- In middle age: You have money and health but less free time.
- In later years: You have time and money but declining health.
By recognizing this balance, you can prioritize experiences at the right moments. Of course, “Die with Zero” isn’t a one-size-fits-all rule. Many Americans struggle just to save for retirement, making this strategy more feasible for those with substantial savings. There’s also the risk of outliving your money or facing unexpected expenses.
That’s why balance is key. Financial planning can help ensure you don’t overspend too soon or leave too much behind unused.
As the saying goes, “You don’t want to be the richest person in the graveyard.”
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