Die With Zero
By Zeke Anders on May 8, 2025
By Bill Perkins – Book Review with Private Wealth Advisor & Planning Specialist, Zeke Anders
The title of this book might sound dramatic and even a bit crazy, but don’t let that deter you. “Die With Zero” by Bill Perkins is an insightful and thought-provoking read that challenges conventional personal finance wisdom. While most personal finance books emphasize saving and investing, highlighting the wonders of compound interest and the importance of saving money, Perkins asks a crucial question: What are we saving for?
Typically, we save and invest with the goal of retiring and living off our investments. However, there are experiences best enjoyed today that might be more difficult or impossible in the future. Transitioning from saving to spending and giving can be more challenging than many imagine. “Die With Zero” offers a fresh perspective on personal finance, rooted in the lifecycle theory of economics, for which Franco Modigliani won a Nobel Prize. This book is particularly helpful for those looking to use their financial capital to achieve fulfillment and enjoyment.
Traditional personal finance advice advocates saving as early as possible, but the reality is that wages start low, increase, plateau, and eventually stop. The lifecycle model of economics suggests that people prefer consumption smoothing—spending the same amount throughout their lifetime—rather than increasing spending over time.
Source: Federal Reserve Bank of St. Louis, https://research.stlouisfed.org/publications/page1-econ/2014/11/01/smoothing-the-path-balancing-debt-income-and-saving-for-the-future/, accessed March 25th, 2024
Practically speaking, consumption smoothing isn’t entirely feasible since future income is unknown. However, this theory acknowledges that income generally increases over time, making it easier to save later rather than earlier, and that saving should end in retirement. There can be a balance between saving for the future and prioritizing experiences that will be more difficult or unappealing later in life. This tension is perhaps greatest when deciding when to retire. On one hand, working longer can significantly boost your retirement cash flow plan. On the other hand, continuing to work may delay family trips, prioritizing health, or volunteering.
Certain experiences are best suited for specific periods in life. For example, the author mentions backpacking in Europe. Taking months off work, staying in hostels, and traveling by train sounds fun in your 20s but may not be as appealing with a family. With a family, we usually seek more security, comfort, and structure. Additionally, our health generally declines over time. Climbing Mt. Kilimanjaro, for instance, might be more challenging as we age. Avoiding these experiences because they cost money today could mean missing out on them entirely if we focus solely on saving until our career, family, or health situation changes. These experiences create what the author calls “memory dividends.” Some memories, like a concert with friends or a family trip, are cherished for years or decades. Thinking of these as investments that pay memory dividends can help justify the expense today.
Consider this hypothetical: If someone offered you $250,000 at age 30, $500,000 at age 40, or $1,000,000 at age 50, what would you choose? Nick Maggiuli, a financial blogger, posed this question on Twitter, and over 17,000 people responded. Despite the math showing these amounts are close to a 7% after-tax growth rate, 70% of participants chose $250,000 at age 30 because the money would have a bigger impact at that age than more money would later in life. This is the “utility” of money. According to the University of Pennsylvania, the most probable age for receiving an inheritance is 56-65. By this time, many people have already saved a nest egg.
Source: https://budgetmodel.wharton.upenn.edu/issues/2021/7/16/inheritances-by-age-and-income-group#:~:text=We%20find%20that%20inheritance%20size,most%20inheritances%20come%20from%20parents., as of July 16 2021
An inheritance may bolster their retirement plan but is perhaps not as transformational as a smaller amount earlier in life. This was the case for Christine Benz, the Director of Personal Finance at Morningstar (here). Her parents helped her and husband with a down payment on a house that was slightly out of their budget. As a benefit, the home was close to Christine’s parents, and 12 years later she and her husband moved even closer, and she ultimately took care of her father when he developed dementia years later.
Many people hope to leave an inheritance for their heirs, but the inheritance will only occur when it has less utility. The same concept applies to charitable giving. In the poll above, which option would a charitable organization prefer? What would make more of a difference, $250,000 today or $1,000,000 in 20 years? Giving today while you are alive allows you to enjoy the fruits of your gift and see how it is used. Spreading out your giving over time also allows you to reevaluate your gifts if they are not being put to good use by heirs or philanthropic organizations. Additionally, estate planning can be challenging if your heirs are younger, known to be loose with money, or have different values. Giving while you are living may help you see how your heirs will utilize the assets and leave behind fewer assets in your estate to be taxed or restricted.
One reason for leaving an inheritance unintentionally is the fear of running out of money during one’s lifetime. This is rational since we don’t know how long we’ll live. Guaranteed sources of income such as Social Security, pensions, or other guaranteed income strategies can help alleviate this concern. Using the formula for Required Minimum Distributions, based on life expectancy, could guide giving smaller amounts earlier in retirement and increasing gifts over time. Long-term care insurance can address another common concern.
Bill Perkins acknowledges that readers won’t truly “Die With Zero.” The book’s message is to remember that wealth is a means to an end. Beyond meeting our basic needs of food, water, and shelter, we also need purpose and fulfillment. We need experiences with family and friends and to make a difference in the world around us. Wealth can compound and grow over time, but it also has more utility in the present than in the future. “Die With Zero” is unique in the personal finance genre, which has hundreds of variations on how to budget and invest but little on how to spend. Not everyone will agree with Perkins’ ideas, but he provides an interesting perspective.
