58 pages • 1 hour read
Bill PerkinsDie With Zero: Getting All You Can from Your Money and Your Life
Nonfiction | Book | Adult | Published in 2020A modern alternative to SparkNotes and CliffsNotes, SuperSummary offers high-quality Study Guides with detailed chapter summaries and analysis of major themes, characters, and more.
Chapters 3-4Chapter Summaries & Analyses
Chapter 3 Summary: “Why Die with Zero?”
In Chapter 3, Perkins presents his third principle: Aim to die with zero. He argues that active decision-making rather than operating on autopilot leads to a more optimized life. The chapter examines the consequences of accumulating wealth beyond what one can meaningfully use during one’s lifetime.
Perkins introduces his friend John Arnold, a successful trader who amassed billions but struggled to stop working despite initially setting much lower financial targets. Despite Arnold’s extraordinary wealth, his leisure time diminished as his fortune grew. When Arnold finally retired at age 38 with over $4 billion, Perkins notes this was actually later than optimal because Arnold missed irreplaceable years with his family and accumulated more money than he could reasonably spend. Perkins identifies this pattern as habit formation rather than rational choice—comparable to addiction—in which making money becomes an end in itself rather than a means to experiences.
The core argument of the chapter centers on the concept of wasted life energy. Perkins presents a hypothetical case study of Elizabeth, a 45-year-old earning $60,000 annually who plans to retire at 65. Through careful calculations, he demonstrates that if Elizabeth dies at 85 with $130,000 remaining, this represents approximately 6,650 hours—equivalent to over two and a half years—of unnecessary labor. This quantification underscores his thesis that dying with assets represents time spent working for no benefit.
Perkins references Nobel Prize-winning economist Franco Modigliani’s life-cycle hypothesis (LCH), which posits that rational individuals should deplete their wealth to zero by death to maximize utility from their money. For those uncertain about their lifespan, Modigliani suggested spreading wealth across the maximum possible years of life.
To counter common objections, Perkins addresses the fear of running out of money prematurely and presents statistical evidence that most Americans continue accumulating wealth well into their seventies and beyond. He cites Federal Reserve data showing median net worth peaks for households headed by individuals 75 and older, and research indicating that retirees with $500,000 in savings spent only 11.8% of their assets after 20 years of retirement. Even more striking, one-third of retirees actually increased their assets post-retirement.
Perkins explains this phenomenon through the concept of diminishing consumption needs: the “go-go years” of early retirement giving way to “slow-go” and eventually “no-go” periods. He illustrates this pattern through an anecdote about his grandmother, who could not bring herself to spend a $10,000 gift he gave her, emblematic of the thrift mindset that often prevents older individuals from using their resources. Supporting this observation, he references consumer expenditure data showing spending declines with age across all income levels.
Addressing healthcare concerns, Perkins argues that catastrophic medical expenses would overwhelm most savings regardless of size, making extensive precautionary saving irrational. Instead, he advocates for preventative healthcare and appropriate insurance products rather than sacrificing present experiences for hypothetical future needs.
Chapter 4 Summary: “How to Spend Your Money (Without Actually Hitting Zero Before You Die)”
In Chapter 4, Perkins addresses the practical challenge of implementing his “die with zero” philosophy given the inherent uncertainty of human lifespan. He acknowledges that achieving exactly zero assets at death is mathematically impossible without knowing one’s precise death date. However, he maintains that approximating this goal remains worthwhile and achievable through proper planning.
Perkins recommends using life expectancy calculators as a starting point for financial planning. These tools, often provided by insurance companies, generate lifespan estimates based on factors such as age, gender, health metrics, and lifestyle choices. While imperfect, these calculators provide probability-based projections that offer valuable guidance for planning purposes. Perkins argues that acting without any lifespan estimate leads to excessive caution and unnecessary saving, resulting in wasted life energy.
The chapter introduces two primary financial risks that affect end-of-life planning: longevity risk (outliving one’s money) and mortality risk (dying earlier than expected). Perkins explains that individuals make poor insurance agents when attempting to self-insure against these risks. For mortality risk, life insurance protects beneficiaries if one dies early. For longevity risk, Perkins advocates considering income annuities—financial products that provide guaranteed lifetime income in exchange for a lump sum payment.
Perkins references economists’ puzzlement over why more people don’t purchase annuities despite their theoretical benefits, a phenomenon termed the “annuity puzzle.” He explains that insurance companies can provide more generous guaranteed income than individuals could safely withdraw on their own (typically higher than the common 4% rule) because they pool risk across many customers. The insurance model ensures that those who die early subsidize those who live longer, providing financial security for everyone in the pool.
The chapter emphasizes that personal risk tolerance significantly impacts financial planning. Those with low risk tolerance might insure heavily or maintain substantial financial reserves, potentially wasting life energy earning money they’ll never use. Those with higher risk tolerance can plan more aggressively but risk outliving their resources. Perkins does not prescribe a specific approach but encourages readers to make conscious, informed decisions rather than acting from unexamined fear.
Perkins cautions that traditional financial advisors may not align with his philosophy, as they typically focus on wealth maximization rather than life experience optimization. He advises seeking fee-only advisors without conflicts of interest and clearly communicating that the goal is maximizing life enjoyment rather than wealth accumulation. He briefly previews his later guidance on declining health tracking and strategic spending acceleration in earlier retirement years when experiences remain more accessible and enjoyable.
The chapter concludes with an examination of human irrationality regarding death. Perkins describes using an app called Final Countdown that displays his remaining time based on life expectancy, creating urgency that combats the natural tendency to postpone experiences indefinitely. This tool serves as a reminder that the “die with zero” philosophy concerns optimizing both financial resources and limited time.
Chapters 3-4 Analysis
In Chapters 3-4 of Die With Zero, Perkins establishes a foundational argument against the conventional wisdom of saving for retirement. The central thesis posits that excessive saving leads to wasted life energy—the hours spent earning money that one never gets to enjoy. The concept of “dying with zero” becomes both a literal financial goal and a metaphorical representation of living without regret. Perkins states this directly: “If you spend hours and hours of your life acquiring money, and then die without spending all of that money, then you’ve needlessly wasted too many precious hours of your life” (43). This statement encapsulates his argument that time spent earning should be balanced with time spent experiencing.
Perkins repeatedly emphasizes The Importance of Experiences and Memories, arguing that money itself holds no inherent value beyond what it can purchase in terms of life experiences. His discussion of his grandmother who received a $10,000 gift but only purchased a $50 sweater illustrates how money becomes meaningless when unused. Perkins asserts that “if you die with $1 million left, that’s $1 million of experiences you didn’t have” (43). This statement frames unspent money not as a neutral asset but as a tangible loss of potential life experiences. His argument frames money as a means to an end, with the end being the accumulation of experiences rather than the accumulation of wealth.
Perkins continues to confront conventional financial wisdom by Challenging Societal Narratives About Saving and Spending. The text references data from the Federal Reserve Board showing that Americans continue accumulating wealth well into their seventies, with spending declining as people age despite rising health care costs. Perkins questions this pattern, asking, “What were they waiting for?!” (54). His critique extends to precautionary saving for medical expenses, arguing that such expenses can be catastrophic regardless of one’s level of savings. The financial industry’s focus on wealth maximization rather than life enjoyment maximization receives particular criticism. “We are solving for your total life enjoyment” (70), Perkins emphasizes, drawing a distinction between wealth accumulation and life satisfaction. This perspective challenges the fundamental assumptions that drive much financial planning advice and societal attitudes about saving.
In these chapters, Becoming Intentional About Time, Money, and Health represents a practical theme that bridges Perkins’s philosophical arguments with actionable advice. The author contrasts “autopilot” financial behavior with deliberate planning that considers one’s mortality and health trajectory. His discussion of life expectancy calculators demonstrates the importance of confronting mortality as a planning tool. Perkins notes, “The reminder of death gives a much-needed urgency to one’s life” (74). His framework encourages readers to consider their projected death rate and declining health when planning financial decisions. This approach represents a holistic view of personal finance that integrates time, money, and health as interconnected resources requiring intentional management.
Chapter 4 addresses the practical challenge of dying with zero given the uncertainty of predicting one’s lifespan. Perkins introduces annuities as financial tools designed to address longevity risk—the possibility of outliving one’s savings. His comparison between self-insuring (leaving a large cushion) and purchasing annuities highlights how financial products can help optimize resource allocation in the face of uncertainty. Perkins references economists’ puzzlement at the underutilization of annuities given their theoretical advantages, known as the “annuity puzzle.” His statement that annuities “are more like insurance” rather than investments frames them as risk management tools rather than wealth-building vehicles. The discussion demonstrates how financial products can be repurposed from wealth maximization to life enjoyment maximization when approached with different objectives in mind (66).
Perkins employs several rhetorical strategies to persuade readers of his unconventional financial philosophy. Analogies feature prominently, such as comparing excessive end-of-life medical spending to “alien robot invasion insurance” and likening continued work habits to smoking addiction (57). His language also frequently frames conventional saving as “waste,” “irrational,” and “needless,” establishing a moral dimension to financial decisions. The repeated phrase “die with zero” functions as both a practical goal and a rhetorical device that distills complex financial philosophy into a memorable directive. These strategies work together to reframe conventional saving habits as problematic rather than prudent.
