Incorporating a “Die with Zero” Philosophy into Your Long-Term Financial Plan

Are you intrigued by the idea of maximizing life experiences and strategically spending your wealth while you’re able to enjoy it? If you’ve read Die with Zero: Getting all you can from your money and your life by Bill Perkins, you may be inspired to rethink traditional wealth accumulation. This book challenges the conventional mindset, encouraging individuals to optimize their financial lives by focusing on meaningful experiences, charitable giving, and passing wealth to heirs at opportune moments rather than waiting until death. While this philosophy can be compelling, there are several important considerations when incorporating this approach into a long-term financial plan.

Understanding the “Die with Zero” Mindset

Despite its provocative title, the book does not suggest that individuals should literally aim to have no money left at the time of death. Instead, it advocates for:

• Spending wealth more strategically to create fulfilling experiences and memories
• Gifting to heirs and charities earlier in life when it can make a greater impact
• Avoiding unnecessary over-accumulation and deferring enjoyment for too long

Key Considerations for Implementing a “Die with Zero” Approach

The Importance of Flexibility

A major challenge with this strategy is ensuring that you retain financial flexibility. Unexpected expenses—such as healthcare costs, market downturns, or changes in personal circumstances—can make it risky to deplete assets too aggressively. Ian Curtiss, one of our wealth managers, points out that some clients struggle with adjusting their spending when a large portion of their budget is tied up in fixed expenses such as mortgage payments or the maintenance of multiple properties. Having the ability to scale back spending in downturns is critical.

Being Prepared for Market Volatility and Risk

Attempting to “spend down” assets in a structured way presents financial risks, especially during volatile market conditions. A strict “Die with Zero” approach could result in a major lifestyle shift at an inopportune time. Ian Curtiss also notes that there’s always a non-zero chance that a retiree could be forced to sell their home or significantly alter their standard of living due to poor market performance. A balanced approach—spending more in strong market years while maintaining a reserve for downturns—may be a practical tactic for managing this risk.

Planning for Longevity and Healthcare Costs

One of the biggest risks to a “Die with Zero” strategy is underestimating longevity. Many individuals live longer than expected, and healthcare expenses often increase with age. Ensuring that you have sufficient resources for later years, even while prioritizing spending earlier in life, is crucial.

Timing Your Gifting to Heirs and Charities

One of the book’s strongest points is its advocacy for gifting wealth to heirs earlier in life rather than waiting until death. This allows recipients to benefit from the assets when they may need them most (such as during child-rearing years or career-building stages). We have worked with clients who are successful in intentionally gifting assets over time, but it requires thoughtful planning to balance generosity with maintaining personal financial security.

Gifting highly appreciated or concentrated stock can be particularly attractive. This strategy offers the dual benefit of meeting lifetime gifting goals while avoiding capital gains taxes and reducing portfolio risk. This approach has resonated with clients and could be a valuable consideration for others in similar situations.

Real-World Applications

Ryland Moore, one of our Coldstream Wealth Managers, shared an example of a client who has embraced elements of this philosophy successfully. This family has no debt, lives within their means, and dedicates about 50% of their annual budget to experiences and travel with family. Their financial flexibility, combined with two pensions that can support them if needed, makes this strategy a good fit for them. However, as Ryland points out, this level of flexibility is not common for most clients.

Matt Sampson, another Coldstream Wealth Manager, emphasizes the importance of flexibility and understanding the potential risks involved. He suggests, “Before heading down this path, it’s important to recognize that we’ll likely have some difficult conversations in the future. You need to be ready to be flexible on your spending during challenging market periods. It’s also critical that you accept the potentiality of the need for lifestyle changes at a possibly unwelcome moment, and take steps to prevent being caught in a financial bind that could force you to sell your home or take other drastic measures.”

Is “Die with Zero” Right for You?

For those interested in this strategy, we recommend:

• Regular financial planning check-ins to reassess spending, market conditions, and personal needs
• A diversified portfolio to provide a buffer against unexpected events
• Clear communication with heirs about gifting intentions to maximize the impact
• A spending strategy that adjusts to market cycles, ensuring security in down years while optimizing enjoyment in strong ones

The “Die with Zero” philosophy is a compelling way to rethink the purpose of wealth, but it requires careful execution. At Coldstream Wealth Management, we work closely with clients to strike a balance—enjoying life’s experiences while maintaining long-term financial security. If you’re considering incorporating elements of this approach into your plan, let’s discuss how to tailor it to your specific needs and goals.

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