Die with Zero
Spend all your money before you die so no life energy is wasted earning money you never enjoy.
Die with Zero is the book's central thesis and most provocative framework. It argues that any money left over when you die represents wasted life energy, because every dollar you earned required hours of your finite life that could have been spent on fulfilling experiences. If you die with $1 million unspent, that is $1 million of experiences you never had, and thousands of hours you worked for nothing.
The framework draws on economist Franco Modigliani's Life-Cycle Hypothesis, which posits that rational people should spread their wealth across their entire lifespan, arriving at zero at death. Perkins adds that this is not merely rational but essential for a fully lived life. The framework does not advocate recklessness: it explicitly accounts for giving to children (which should happen before you die), charitable donations (which should also be given earlier for maximum impact), and protection against outliving your money (through annuities and insurance).
The practical challenge is that you cannot know your exact death date. The framework addresses this through life expectancy calculators, annuity products that protect against longevity risk, and the survival threshold formula (0.7 times annual survival cost times years remaining). Once your survival needs are covered, every additional dollar saved beyond that threshold is a dollar wasted unless deliberately spent on experiences.
- Money left unspent at death equals wasted life energy
- Every dollar you earn represents a portion of your finite life traded for money
- Dying with zero requires separating money for others from money for yourself
- Insurance products (annuities, long-term care) protect against outliving your money
- The survival threshold is the bare minimum needed; everything beyond it should be spent
- Fear of running out of money is often irrational and leads to massive oversaving
- Calculate your life expectancyUse a life expectancy calculator (such as the Actuaries Longevity Illustrator or Living to 100) to estimate your probable death age. This anchors your entire spending plan.
- Calculate your survival thresholdApply the formula: survival threshold = 0.7 x (annual cost of survival) x (years remaining). This gives you the bare minimum you need to survive. Any savings beyond this amount should be earmarked for experiences.
- Separate your money from others' moneyDetermine how much you want to give to children, family, and charity. Set this aside in trusts or make the gifts now. What remains is your money to spend down to zero.
- Protect against longevity riskConsider purchasing an income annuity that guarantees monthly payments for life, eliminating the fear of outliving your savings. Alternatively, work with a fee-only financial adviser to create a decumulation plan.
- Begin spending down deliberatelyOnce your survival needs and gifts are covered, aggressively spend the remainder on fulfilling experiences. Spend more in your 50s than your 60s, and more in your 60s than your 70s, matching your spending to your declining capacity for experience.
A hypothetical 45-year-old woman earning $60,000 per year saves $16,000 annually for 20 years, retires at 65 with $770,000, but dies at 85 leaving $130,000 behind. At her hourly rate of $19.56, the leftover money represents over 6,646 hours worked for nothing.
Perkins' doctor asked him if he had fears of running out of money as part of a psychological evaluation. Perkins answered that he hoped he would run out of money. The doctor, stunned, urged him to write a book about this philosophy, noting that even his wealthy patients feared running out of money.