Bill Perkins’ book Die With Zero challenges traditional thinking about wealth, retirement, and legacy. It introduces a bold premise: life is finite, and our goal should be to maximize meaningful experiences, not to accumulate endless wealth. For affluent families, the book's ideas have profound implications for gifting, spending, retirement planning, and estate planning. Here's a look at how Perkins’ philosophy can reshape your approach to money and life.
The Central Premise: Maximizing Life Experiences
Perkins argues that the ultimate goal of wealth should be to fund a life rich in memories and fulfillment—not to leave behind a massive fortune.
In my experience, working with families of all levels of wealth, many people work tirelessly to grow their wealth, but they may sacrifice meaningful experiences or delay spending until it’s too late to fully enjoy it. In wealthy families, there is a drive to leave behind “generational wealth” and in more moderately wealthy families, there is a desire to make sure that the surviving spouse is provided for and that the parents do not “outlive” their money or become a burden on their children.
In an alternative take on these traditional views, Perkins suggests:
- Spending money during your most active years to fund your own personal experiences and shared family experiences.
- Gifting strategically during your lifetime to see your wealth make an impact.
- Reframing the idea of leaving a large inheritance as the only way to leave a legacy.
This perspective encourages a proactive approach to gifting, estate planning, and even philanthropy.
Note: Gifting and actually doing what Perkins suggests should be simple, but there are a few traps and pitfalls that can be avoided with great estate planning and understanding the gift tax laws. Here are two links that might help:
Gifting and Other Vital End of the Year Estate Planning Ideas and Updates.
Also, if you already know that you want to make strategic gifts or to help with weddings, homes, educational expenses and more call 610-933-8069 for an estate planning & gifting strategy session.
Gifting: The Joy of Giving While Living
One of the most practical applications of Die With Zero is its approach to gifting. Perkins argues that instead of waiting to pass wealth down through an estate, parents should consider giving money to their children when it will have the most impact—during their 20s, 30s, and 40s, when they are building careers, buying homes, and raising families.
For mass affluent and wealthy families, this means:
- Helping Children Early: Providing financial support for weddings, down payments, or educational expenses when it matters most.
- Witnessing the Impact: Seeing how your gifts improve your children’s lives can be deeply rewarding and creates memories for both giver and receiver.
- Reducing Estate Tax Burdens: Strategic gifting during your lifetime reduces the size of your taxable estate while making the most of annual exclusions and lifetime exemptions.
Spending: Aligning Money With Your Life Stages
Perkins emphasizes the importance of aligning spending with the stages of life when you can enjoy it most. For example:
- In Your 50s and 60s: Spend on travel, experiences, and family time while you’re active and healthy.
- In Later Years: Shift focus to comfort and legacy projects, like philanthropy or supporting causes that matter to you.
This approach ties into retirement planning, as it encourages rethinking how much money is “enough” for a fulfilling retirement. Instead of over-saving, focus on funding a life filled with meaningful experiences.
Retirement Planning: Breaking the Over-Saving Mindset
Many affluent individuals save far more than they need for retirement. Perkins challenges this mindset by encouraging people to calculate what they need to live comfortably and then plan to spend or to share the rest.
Key takeaways for retirement planning:
- Spending With Purpose: Avoid sacrificing your best years to over-accumulating wealth you may never use.
- Longevity Planning: Consider tools like annuities or careful drawdowns to ensure you don’t run out of money while still maximizing spending on experiences.
- Health and Enjoyment: Understand that time and health are your most valuable resources; money can’t buy back lost opportunities.
Estate Planning: Rethinking Legacy and Timing
For families focused on estate planning, Die With Zero offers a provocative perspective: why wait until death to leave a legacy? Perkins advocates for distributing wealth in ways that create joy and meaning during your lifetime. This could include:
- Lifetime Gifting: Make use of annual exclusions and lifetime gift exemptions to transfer wealth tax-efficiently.
- Philanthropy Now: Fund causes you care about while you’re alive, so you can see the impact of your generosity.
- Downsizing Early: Simplify your estate to reduce future complexities for your heirs and focus on meaningful living.
This doesn’t mean neglecting traditional estate planning tools like trusts or wills. Instead, it’s about complementing them with actions you can take now.
Integrating the Die With Zero Philosophy Into Your Financial Plan
If Perkins’ ideas resonate with you, here are steps to start integrating them:
- Reassess Your Priorities: Reflect on what experiences or memories you want to create and how your money can support those goals.
- Engage in Strategic Gifting: Work with a financial advisor or attorney to structure gifts that are impactful, tax-efficient, and align with your values.
- Create a Spending Plan: Shift your focus from accumulation to purposeful spending during your prime years.
- Update Your Estate Plan: Ensure your plan reflects both your desire to provide for heirs and your wish to live a rich, fulfilling life and that it aligns with your gifting and complies with the law.
Closing Thoughts
Die With Zero is not about reckless spending or neglecting your responsibilities. It’s about living intentionally, using wealth to enhance your life and the lives of those you care about. For affluent families, this mindset shift can lead to more rewarding relationships, a greater sense of purpose, and a balanced approach to money and legacy.
Whether you wish to follow a traditional planning of growing your estate and assets or, you’re ready to rethink your gifting, spending, retirement, or estate planning strategies, our team is here to help. Contact us today to at 610-933-8069 for an estate planning strategy session and start building a plan that aligns with your goals and the principles of Die With Zero.
