by Robert E. Quittner, Jr. CFP® & CMFC™
Investment Advisor Representative
[email protected]
We have lived by “Rules of Thumb” our whole lives. I remember my parents saying to me at a young age:
- Treat others the way you want to be treated.
- If you can’t say something nice, don’t say anything at all.
- Mind your manners.
- If you start something, finish it.
- Money doesn’t grow on trees.
These little phrases stick with us — and they’re not just for childhood. Every profession and walk of life has its own set of rules. For example:
- Carpenters say: Measure twice, cut once.
- Retail folks follow the 80/20 rule: 80% of your sales usually come from 20% of your items — focus on those top performers.
- And in financial planning, we’ve got things like the 4% rule, the Rule of 72, and the Rule of 100.
Today, I want to talk about a different rule on retirement planning: The “Die With Zero” Rule.
According to a recent article in Kiplinger’s, “Over the next two decades, an estimated $90 trillion will pass from older generations to heirs in what’s been called the ‘Great Wealth Transfer.’ It’s a huge shift for those who follow estate and retirement planning trends. But if you ask hedge fund manager and best-selling author Bill Perkins, what’s really being transferred isn’t just money — it’s trillions in unlived experiences.”
In his book “Die With Zero: Getting All You Can from Your Money and Your Life”, Perkins argues that life is better spent maximizing experiences rather than maximizing wealth. After all, wealth is only valuable if you actually use it.
As Perkins puts it: “You need money to survive in retirement, but the main thing you’ll be retiring on will be your memories—so make sure you invest enough in those.”
The book’s popularity has motivated many people to rethink their approach to retirement, embracing the “Die with Zero” rule. The goal is to live a fulfilling life within the limited time we have.
In reality, Perkins’s advice might not be that easy to apply. We work with a lot of folks who have been chronic savers all their lives. Saving is how they accumulated their wealth. To suddenly turn on the faucet and start spending their nest egg is at odds with the habits they established and held over the last 40 to 50 years of their lives. News coverage only adds to their spending angst as the media often highlights the alarming shortfall in retirement savings. It is true that many Americans aren’t saving enough. According to a 2025 Gallop poll, only half of non-retirees with a retirement savings plan expect to live comfortably in retirement.
Many retirees hesitate to spend their savings, preferring the security of untouched nest eggs. They tend to be more comfortable spending Social Security and pension income than withdrawing from their retirement accounts. For example, a recent study found that households with married 65-year-olds withdrew an average of just 2.1% of their savings annually—far below the recommended sustainable withdraw rate of 4%.
The “Die with Zero” rule encourages a different approach: Spend your money intentionally—whether it’s on yourself, your loved ones, or charity—while you’re alive to maximize life experiences. The logic is simple. You worked for your wealth. If you don’t use that wealth, whatever is left over is time you spent working for free.
That said, the goal isn’t to hit zero too soon and end up in financial distress. Retirees need to keep in mind that the money they saved while working is meant to last them a lifetime, so it’s important to be responsible with your spending. In practice, we factor in the estimated cost of Long-Term Care later in life. These costs may be paid from assets set aside, covered by insurance, or may come from the equity in your home.
A major part of the “Die with Zero” philosophy is giving while living. Perkins notes that adult children often need financial help in their 20s—when buying a first home or starting families—not when they inherit wealth decades later. Similarly, donating to charity during your lifetime allows you to see the impact of your giving rather than leaving it in your will. We often encourage clients to take their kids and grandkids on nice vacations and cover everything from airfare to daily meals.
One tool Perkins suggests is time bucketing: dividing your life into five-to ten-year intervals and setting experience goals for each stage. This helps you prioritize meaningful activities while still being able to enjoy them. We often start the spending conversion by handing the folks a “Bucket List” and encouraging them to think about what brings them joy and then aligning their money with what matters most. Rather than chase big-ticket adventures, spending later in life might mean funding a family reunion, gifting to grandchildren, or making daily life more comfortable and meaningful—whether that’s support at home, continuing education, or finally picking up the guitar.
Granted the “Die with Zero” rule isn’t for everybody as some people have saved just enough to cover their current lifestyle.
Psychology plays a big role. Behavioral science shows that people tend to feel the pain of losses more intensely than the joy of equivalent gains, a bias that makes shifting from saving to spending difficult. An objective opinion can help counter this mindset and Perkins suggests that working with an advisor can help create a game plan that allows individuals to maximize spending while maintaining healthy savings for a rainy day.
The old saying goes, “You don’t want to be the richest person in the graveyard.” Sure, it’s normal to fear outliving your money—but fearing not living at all might be the greater risk. The fact is, we’re all going to die someday. We might as well enjoy the ride while we can! As Peter always says, “Take enough limo rides before you take the last limo ride!”
Enjoy your weekend!
Rob