Die With Zero: Getting All You Can from Your Money and Your Life

Compound growth in Die With Zero refers to the exponential increase in value that occurs when returns are reinvested over time, applied to both financial investments and life experiences. Perkins adapts this traditional financial concept to explain how investing in experiences early in life creates greater cumulative value than delaying them until later years. The principle demonstrates why front-loading meaningful experiences in younger years allows individuals to benefit from their memories for a longer period. This concept forms the foundation of Perkins’s argument that, similar to starting retirement accounts early, people should begin collecting significant life experiences when young to maximize their lifetime return on enjoyment.

Experience points are a quantitative measurement system Perkins introduces to help readers evaluate and compare the value of different life activities. These points represent the subjective enjoyment or fulfillment gained from specific experiences, allowing individuals to prioritize activities that generate the highest personal return. Perkins acknowledges that the point values assigned to experiences vary significantly between individuals based on personal preferences and interests. This system enables readers to make more deliberate choices about time and money allocation by comparing the relative value of disparate experiences, moving beyond purely financial metrics to assess life satisfaction.

The 50-30-20 rule is a budgeting formula that Perkins discusses in Die With Zero as an example of conventional financial wisdom that needs to be reconsidered. According to this rule, which was originally proposed by Elizabeth Warren before she entered politics, a person should allocate 50% of their income to necessities (like rent, groceries, and utilities), 30% to personal wants (like travel, entertainment, and dining out), and 20% to savings and debt repayment. Perkins critiques this approach because it recommends the same savings percentage regardless of a person’s age or financial situation. He argues that this type of fixed saving ratio fails to account for how a person’s optimal balance between spending and saving should shift throughout their lifetime based on changing income levels, health status, and ability to enjoy experiences.

Go-go, slow-go, no-go refers to the three distinct phases of retirement that Bill Perkins describes in Die With Zero to explain declining consumption patterns among older adults. The go-go years occur immediately after retirement when individuals have both health and financial resources to pursue experiences they postponed during their working years. The slow-go years typically begin in one’s seventies when energy declines, health issues emerge, and people naturally reduce their activity levels and corresponding spending. The no-go years, generally occurring in one’s eighties or beyond, represent a period when mobility becomes severely limited and opportunities for experiences diminish significantly regardless of available financial resources. This framework helps explain why many retirees fail to spend their savings as planned, since their desire and ability to consume experiences naturally diminishes with age—a key insight supporting Perkins’s argument for earlier consumption rather than excessive end-of-life saving.

Income annuities are financial products discussed in Die With Zero that provide guaranteed regular payments for the remainder of one’s life in exchange for an upfront lump sum payment. Perkins describes them as essentially the opposite of life insurance—where life insurance protects against dying too young, annuities protect against living too long and outliving one’s savings. These products allow individuals to transfer longevity risk to insurance companies, which can better manage this risk by pooling many customers together. Perkins notes that annuities typically provide higher guaranteed annual income than the popular 4% withdrawal rule because the purchaser relinquishes the principal entirely, eliminating the possibility of leaving behind unspent money. Though not a universal recommendation, Perkins presents income annuities as one important tool that can help individuals confidently spend down their assets without the fear of running out of money before death.

The life-cycle hypothesis is an economic theory developed by Nobel Prize-winning economist Franco Modigliani that Perkins references to support his “die with zero” philosophy. This hypothesis proposes that rational individuals should spread their wealth across their entire lifespan and ultimately deplete their assets completely by death to maximize utility. According to this model, people should borrow during low-income years, save during high-income years, and then gradually spend down savings during retirement. Perkins uses this established economic concept to legitimize his seemingly radical advice about spending down assets rather than accumulating indefinitely. The life-cycle hypothesis provides theoretical backing for Perkins’s practical advice by demonstrating that the goal of dying with zero is not merely a provocative idea but a financially rational approach supported by mainstream economic theory.

Life energy represents the finite hours of one’s existence that one spends working to earn money. This concept, which Perkins adopted from the book Your Money or Your Life by Vicki Robin and Joe Dominguez, frames money as a representation of the irreplaceable time one has exchanged for it.

Longevity risk refers to the financial uncertainty created by potentially living longer than expected and outliving one’s savings. In Die With Zero, Perkins identifies this as one of the primary obstacles preventing people from optimally spending their money throughout their lifetime. This risk often leads individuals to over-save as a precaution, acting as their own inefficient “insurance agents” by maintaining excessive financial reserves. Perkins explains that longevity risk causes many people to die with substantial unspent assets that represent wasted life energy—time spent working for money never enjoyed. The book presents various approaches to managing longevity risk, including income annuities that guarantee lifetime payments regardless of how long one lives, allowing individuals to spend more confidently without fear of future poverty.

Memory dividend refers to the ongoing psychological returns that experiences provide long after they occur, in the form of memories. Unlike material possessions which typically depreciate in value over time, meaningful experiences continue to provide joy and fulfillment through remembrance, storytelling, and reflection. This concept is central to Perkins’s argument that spending money on experiences rather than objects leads to greater lifetime fulfillment. Memory dividends compound over time as people revisit and share their memorable experiences, creating additional value beyond the initial investment. The concept supports Perkins’s core philosophy that strategic spending on the right experiences at the right time maximizes overall life satisfaction. Memory dividends demonstrate why converting money into experiences before it’s too late represents a superior investment strategy compared to excessive saving or purchasing depreciating material goods.

Mortality risk is defined in Die With Zero as the financial uncertainty created by potentially dying earlier than expected. This represents the opposite concern from longevity risk and creates different financial planning challenges, particularly for those with financial dependents. Perkins identifies life insurance as the traditional solution to mortality risk, allowing individuals to protect their survivors against financial hardship should they die prematurely. The book explains that insurance companies can effectively manage mortality risk by pooling many customers together, with premiums from those who live longer than expected offsetting payments to beneficiaries of those who die earlier. Understanding both mortality risk and longevity risk is essential to Perkins’s framework for optimal life planning, as balancing protection against these opposing risks helps individuals allocate resources more effectively across their lifespan.

Net worth peak refers to the specific point in a person’s life when their financial assets reach their maximum value before deliberately beginning to spend them down. This concept represents a paradigm shift from conventional financial planning that encourages continuous wealth accumulation. According to Perkins, most people should reach their net worth peak between the ages of 45 and 60, after which they should start spending down their savings to maximize life experiences while health remains good. The net worth peak is determined by biological age and personal circumstances rather than by achieving a specific dollar amount. Reaching and recognizing this peak is essential to Perkins’s philosophy of dying with zero, as it marks the transition from accumulation to strategic decumulation of wealth.

The personal interest rate is a concept Perkins introduces in Die With Zero to represent how much someone would need to be compensated to delay having an experience. This rate increases with age because as people get older, they not only have less time remaining in their lives and but also often diminished health to enjoy experiences. For a young person, the personal interest rate might be low, meaning they would accept a relatively small premium to postpone an experience, because they can typically have the same experience later with similar enjoyment. For an elderly person, the personal interest rate would be much higher—possibly exceeding 100%—because delaying an experience might mean never having it at all due to declining health or limited remaining lifespan. Perkins uses this concept to help readers determine when they should spend money on experiences versus when they should delay gratification.

Survival threshold represents the minimum amount of money a person needs to save to cover basic expenses for their remaining expected lifetime. This financial benchmark is calculated as approximately 70% of annual living costs multiplied by the number of years a person expects to live. The survival threshold accounts for investment returns offsetting some withdrawal needs and serves as the bare minimum financial safety net before someone can begin spending down their savings. Once a person reaches their survival threshold, they can confidently focus on maximizing experiences rather than continuing to accumulate wealth indefinitely. The survival threshold differs for each individual based on their cost of living, location, health status, and expected lifespan, making it a personalized calculation rather than a universal figure.

The three Rs is a phrase Perkins uses in Chapter 5 of Die With Zero to describe the randomness inherent in traditional inheritance practices. These three Rs stand for “random amounts of money at a random time to random people” (80). Perkins introduces this concept to highlight how leaving inheritances after death creates unnecessary uncertainty about who will receive money, how much they’ll receive, and when they’ll receive it. This uncertainty undermines what Perkins considers truly caring financial planning, as beneficiaries might receive money too late in life for it to have meaningful impact. The three Rs concept serves as a cornerstone of Perkins’s argument that intentional giving during one’s lifetime is superior to traditional inheritance models, allowing givers to witness the benefits of their generosity and ensuring resources reach recipients when they can be most useful.