The 'Die With Zero' Rule of Retirement
If spending makes you nervous, the 'Die with Zero' rule might be for you. Don’t be the richest person in the graveyard.
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. Wealth is only valuable if you use it.
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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 retirement plans and embrace what we might call the “Die with Zero” rule. The goal is to live a fulfilling life within the limited time we have.
But is this philosophy truly practical, or is it more idealistic than realistic? More fiction than fact?
What is the Die with Zero rule?
News coverage often highlights the alarming shortfall in retirement savings. It’s true, many Americans aren’t saving enough. A recent Gallup poll found that only half of nonretirees with a retirement savings plan expect to live comfortably in retirement.
Moreover, amid the lingering impact of inflation and longer lifespans, some financial experts question whether the traditional guideline of stashing away 80% of your income remains sufficient. That guideline stems from research (PDF) done in the late 1990s, after all.
Perkins, however, sees another issue, one that gets far less attention: People hoarding wealth at the expense of living their best lives.
A recent study found that 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, households with married 65-year-olds withdrew an average of just 2.1% of their savings annually — far below standard withdrawal recommendations.
Financial advisers frequently see this hesitation firsthand. Loren Sherman, founder of Integrity Wealth Management, says, "As retirement approaches, people should ask themselves: 'What is all this for?' Many struggle to shift from saving mode to actually enjoying the fruits of their labor while not getting attached to seeing a number continually increase."
Perkins believes this mindset leads people to miss out on life. Instead of accumulating memories, they just accumulate money until it’s too late to enjoy it.
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: Money left at death represents precious time spent working for free.
That said, the goal isn’t to hit zero too soon and end up in financial distress. As Ryan Theisen, financial adviser at Advance Capital Management, cautions, “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.”
Instead, the Die with Zero rule focuses on making sure that, by the end of your life, you’ve made full use of the money you spent so much valuable time and energy to earn.
"In the end, it’s not what you had that matters. It’s what you did." — Bill Perkins
How to follow the Die with Zero strategy
The Die with Zero rule involves timing your spending wisely by balancing health, money and time — each abundant at different life stages.
When you're young, 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. The key is to spend strategically.
For instance, prioritizing physically demanding experiences when young and using money to “buy time” in middle age, such as outsourcing chores to free up leisure hours.
Sherman advises, "Spending along the way requires balance and flexibility. Find what truly brings you joy, so you’re getting maximum value out of each dollar."
For example, 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.
In fact, Fidelity reports a 23% increase in donor-advised fund grants in 2025, suggesting retirees are finding value in giving now, not later.
One tool Perkins suggests is time bucketing: dividing your life into five-to-10-year intervals and setting experience goals for each stage. This helps you prioritize meaningful activities while still being physically able to enjoy them.
Sherman says, "It starts by having a real intentional conversation about what brings you joy and aligning money with what matters most."
Life Stage | Abundant Resources | Scarce Resources | Strategy |
|---|---|---|---|
Youth | Time and health | Money | Prioritize physically demanding experiences. Take advantage of high energy and resilience, even on a budget. |
Middle Age | Money and health | Time | Use money to "buy back" time. Outsource chores and administrative burdens to free up hours for leisure and family. |
Later Years | Money and time | Health | Focus on comfort, philanthropy, and low-impact fulfillment. Shift toward lifelong learning, comfort, and "giving while living." |
Does the Die with Zero rule change later in life?
Much of the book Die With Zero focuses on spending earlier — in your 30s, 40s and 50s — when health and time are on your side. But what about people already in their 70s or 80s?
For them, the rule doesn’t disappear — it just shifts.
At that stage, the regrets people carry tend to be about time, not money. Yet, many retirees still hold on to an accumulation mindset. A BlackRock survey found that five years into retirement, fewer than one in five retirees had set any goals for how much they wanted to have at the end of life. Among those who did, more than half aimed to grow their assets, with little to no planning around systematically spending them down.
Rather than chase big-ticket adventures, spending with intention 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.
As Perkins writes, "In the end, it’s not what you had that matters. It’s what you did."
The risks and criticism of Die with Zero
Despite its appeal, the Die with Zero rule faces criticism.
For one, it doesn’t account for those who are just struggling to retire. For context, the median U.S. household retirement savings (PDF) hovers around $64,000 — a stark contrast to the $1.46 million most Americans believe they need to retire comfortably.
Longevity risk — the possibility of outliving savings — is another concern. Medical emergencies, disability or unexpected expenses can derail even the best-laid plans. As Theisen notes, "The last thing anyone wants is to outlive their money. It’s a tightrope walk, especially if unforeseen expenses arise."
In the book, Perkins suggests annuities as one way to mitigate this risk by providing guaranteed lifetime income. However, their complexity, costs and restrictions seem to conflict with the Die with Zero emphasis on financial flexibility and using wealth for life experiences.
Overspending can also be a potential pitfall. Sherman warns that withdrawing too much, too soon, can cause you to miss out on additional compounding. That's particularly true if your early withdrawals coincide with a slumping stock market, known as the "sequence of returns risk." A spend-heavy mindset can leave retirees vulnerable if their financial situation takes a turn for the worse.
Is the Die with Zero rule good advice? It largely depends on your circumstances, but for everyone, it can be applied to varying degrees in retirement.
Should you follow the Die with Zero rule?
Perkins acknowledges that Die with Zero isn’t optimal for everyone. It’s best for those who have already built substantial savings and tend to be overly frugal despite having more than enough.
Therefore, for most people, following the rule exactly might be unrealistic. But adopting aspects of it — such as spending more on experiences, gifting sooner and breaking free from unnecessary frugality — could lead to a more fulfilling, happier retirement.
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. Known as "loss aversion," this bias makes it difficult to shift from saving to spending.
An objective opinion can help counter this mindset. Perkins writes of the benefit of working with a financial adviser, a point echoed by Theisen: "An adviser can help create a game plan that allows individuals to maximize spending while maintaining a healthy savings for a rainy day."
The old saying goes, "You don’t want to be the richest person in the graveyard." It’s normal to fear outliving your money — but fearing not living at all might be the greater risk.
We’re all going to die someday; we might as well enjoy the ride while we can.
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