When it comes to money, the old adage that you can’t take it with you still rings true. Yet a growing number of financial advisers hear clients ask whether they should aim to spend down their savings rather than leave a large nest egg behind. The philosophy, dubbed “die with zero,” was popularized by hedge‑fund manager Bill Perkins in his book Die With Zero. While the idea can inspire a more experience‑focused life, experts stress that it’s not a literal plan and it certainly isn’t right for everyone.
It’s a mindset, not a strict formula
James Malatos, a certified financial planner with Harbor View Private Wealth in Atlanta, says the concept is more about shifting attitudes than following a rigid schedule. “You can see how much you’re worth on your smartphone,” he notes, “but what is the money really for?” The goal, according to Malatos, is to use savings for meaningful experiences while you’re still able to enjoy them, rather than hoarding wealth until the very end of life.
Who might benefit?
Financial planners agree that the approach works best for people who already have substantial retirement savings or reliable retirement income streams, such as Social Security, pensions, or annuities. Michael Espinosa, a CFP with TrueNorth Wealth in Salt Lake City, warns that younger individuals without a solid financial foundation could misuse the philosophy. “A lot of young folks use ‘die with zero’ as an excuse to say, ‘I’m going to live in the moment, and I’m not saving for retirement,’” he says, adding that such thinking can mask financial irresponsibility.
Build a solid base first
Before considering an aggressive spend‑down, advisers recommend three essentials: a healthy emergency fund, no high‑interest debt, and adequate insurance coverage. Espinosa emphasizes, “Get your financial foundation in place first, and then you can worry about not dying with too much money at the end of your life.”
Spend according to life stages
The strategy also encourages timing expenditures to match your physical ability and life circumstances. For example, a trip to climb Mount Kilimanjaro makes sense while you’re still fit, but postponing it could mean missing the experience entirely. Similarly, charitable giving early allows donors to see the impact of their contributions, and younger children may benefit more from financial assistance now rather than waiting for an inheritance later in life.
Catherine Valega, a CFP and founder of Green Bee Advisory in Burlington, Massachusetts, illustrates this point: “I don’t need to give my kids $3 million when I die — they’re going to be in their 60s. They need the help now in their 30s for a down‑payment on a home.”
Plan for flexibility
Life rarely follows a straight line, and any spend‑down plan should accommodate unexpected changes. Valega recounts a client diagnosed with early‑onset Alzheimer’s disease, noting that “that changes their life,” and underscoring the need for regular review of financial projections.
Working with a qualified financial planner can help model different market scenarios and determine a safe withdrawal rate. Espinosa adds, “They can help model scenarios and say, based on different market returns, ‘This is the likelihood you would or would not outlive your money.’”
Take the shift step by step
Transitioning from saving to spending can feel uncomfortable, but many find it rewarding. Valega describes a client who, at age 75, decided to renovate a kitchen and rent a family house in Mexico for a week, saying, “It is OK.” The key, she says, is to keep the plan adaptable and to enjoy the experiences that align with your values and family needs.
In short, the “die with zero” philosophy can inspire a richer, experience‑focused life, but only after you’ve built a sturdy financial foundation and considered how your circumstances may evolve.
Original reporting: KTBS 3 (Shreveport) — read the source article.
