Bill Perkins, in his book “Die with Zero,” introduces a revolutionary viewpoint on financial management. He urges individuals to exhaust their financial resources in their lifetime rather than saving it for inheritance or post-retirement needs.
Perkins disputes the conventional idea of accumulating wealth for future generations and argues for living in the present. He encourages readers to reconsider their financial habits and contemplate fully using their savings.
Interestingly, he observes that many retirees become wealthier post-retirement. This observation prompts Perkins to speculate that retirees might withhold themselves from life’s pleasures by saving surplus funds for the twilight years. He believes this could result in losing opportunities for present enjoyment and fulfillment.
This excessive thrift could possibly stem from the fear of outliving their savings or the desire to bequeath a substantial legacy. Perkins contends that retirees can devise a more balanced approach, enjoying their wealth without compromising on their financial security.
Perkins advocates more spending on personal interests and meaningful life experiences.
Living fully: Perkins’ finance advice
He suggests providing financial support to children when they are still young. His unconventional viewpoint contradicts traditional beliefs about saving for retirement. Instead, he emphasizes on making meaningful use of resources in the present.
To validate his viewpoint, Perkins presents four key arguments using data from multiple sources, including the 2016 Federal Reserve Board data and IRS data from 2018. These arguments collectively imply a trend of increasing net worth, suggesting the financial independence of today’s retirees.
While acknowledging the significance of healthcare costs in retirement expenses, Perkins argues that preparing for every possible healthcare scenario is unfeasible. He encourages using savings during the youthful years for good health maintenance, contributing to minimized healthcare costs later in life.
According to Perkins, retirees often decrease their expenses more efficiently than anticipated. Through strategic financial decisions, they extend their retirement savings further than expected. As such, he urges future retirees to approach financial planning with optimism and creativity.
