Bill Perkins, author of ‘Die With Zero’, challenges the traditional approach of accumulating a massive retirement savings and instead advises a more balanced life. He champions the concept of using money to create memorable experiences while health permits.
Favoring optimized spending rather than excessive saving, Perkins indicates that focusing on playing, travelling, or embarking on adventures could bring true happiness and life satisfaction. This approach shifts the power balance, making money work for the individual, not vice versa.
Perkins suggests that estimates for essential retirement savings may be overstated, a perspective reinforced by significant leftover funds in numerous retirement accounts. Rather than leaving a significant inheritance, he suggests completely spending savings prior to death.
Perkins encourages individuals to invest their assets into meaningful experiences, support their children during their formative years, and address personal needs.
Rebalancing the retirement approach: spending over saving
It’s about promoting diligent and beneficial use of wealth throughout one’s lifetime instead of hoarding for the afterlife.
Interestingly, Perkins found that about a third of retirees see their wealth grow after retirement, a deviation from the expectation of dwindling finances post-retirement. This surprising trend was confirmed by the 2016 Federal Reserve Board data.
While acknowledging healthcare expenses as a key factor in retirement planning, Perkins advised against building extensive reserves for worst-case scenarios. Rather than saving exorbitantly for potential healthcare costs, Perkins promotes acquiring good insurance policies and leading a healthy lifestyle.
Challenging the belief that retirees make excessive spending, Perkins asserts that spending decreases as people age. This claim is supported by data showing that the proportion of household expenses to income remains steady, indicating reduced spending during retirement.
Although Perkins’ perspective contradicts conventional wisdom, his fresh take on retirement planning could potentially resonate with those seeking out-of-the-box strategies for their future. Perkins’ innovative practices challenge norms and promise not only a unique but efficient approach towards building a relaxed post-work life.
