Notes - Die with Zero

December 9, 2024

Chapter 1

The book opens with a table of contents, laying out the book’s structure and key concepts, including optimizing life, investing in experiences, aiming to die with zero, balancing life, and time-bucketing, among other things. The copyright information notes that the book was written by William O. Perkins III and includes information about reproducing selections from the book and Library of Congress cataloging data. The author's note opens with a reference to the fable of the Ant and the Grasshopper, suggesting that while it is important to work, there is also a time for play. The book's theme is about thriving, not just surviving, and making your life grow rather than just making your money grow. The author notes that he is not a certified financial planner and that the book is not intended as a substitute for professional advice, but rather as a way for readers to rethink their basic assumptions about life.

The first chapter, "Optimize Your Life," introduces the idea that life should be about maximizing positive life experiences. The author uses the story of Erin and John, who faced a grim cancer diagnosis, as an example of how everyone must face the question of making the most of their finite time on earth. This is framed as an optimization problem: how to maximize fulfillment while minimizing waste. The author believes that the core question for everyone is how to best allocate life energy before death, and he has developed guiding principles to address this question.

According to the author, many people waste their resources by putting off living life fully, whether it's a 25-year-old settling for a soul-crushing job or a 60-year-old working long hours to save more money instead of enjoying their wealth. The author acknowledges that people enjoy different experiences, and the goal is not to prescribe what kind of experiences are best, but rather to choose experiences deliberately and purposefully instead of living life on autopilot.

The author refers to himself as an "honorary billionaire," someone who spends like a billionaire without actually being one. He argues that many billionaires do not spend their fortunes during their lifetimes and that even those who give a lot to charity struggle to spend their money fast enough. The author came across the book Your Money or Your Life by Vicki Robins and Joe Dominguez, which transformed his understanding of the value of his time and life. This book made him realize that money represents life energy, or all the hours that one is alive to do things, and whenever one works, one spends some of that life energy. The idea is that any amount of money earned represents the amount of life energy spent earning that money, and spending that money means spending an equal amount of life energy. The author started calculating how many hours he had to work to buy things and became more aware of the life energy he was spending. He also noted that a higher salary doesn’t always mean more actual income when factoring in the life energy costs of a job.

The author notes that his approach to life is in line with Your Money or Your Life, which urges people not to sacrifice their lives for money or to be slaves to their jobs and possessions. While that book advocates frugality, the author believes that life is the sum of all experiences, and living on a shoestring budget can deprive people of valuable experiences. Therefore, the main question the author seeks to answer is: What is the best way to spend your life energy before you die?

The book originated as an app designed to help people optimize their lives. The idea came to the author when his doctor asked what his goal was, and the author responded by saying that he hoped to run out of money because he wanted a life full of experiences and would not be able to use his money when he was too old. The doctor encouraged him to write a book about it. However, the author notes that the idea of dying with zero turned many people off, especially those with a fear of running out of money. The author clarifies that he is writing for people who are saving too much for their own good and not for those who are struggling to make ends meet. He explains that people in poverty do not have the luxury of finding the optimal balance between work and play.

The author believes that while there are many suboptimal ways to live, there is only one way to live optimally, and that by following the principles in his book, people can avoid the most egregious errors and get more out of their money and life. He explains that humans are energy-processing units that use food to power their bodies and that movement leads to discovery, wonder, and joy. Therefore, he argues that the way to make the most of life is to maximize the number of positive life experiences. The main challenge is that it is difficult to figure out how much life energy to apply to earning money and how much to having experiences. An app can help compare different possible life paths, but even an app cannot optimize perfectly because a model cannot fully capture the complexity of human life. Still, the author is confident in his guiding principles, each of which is explained in each chapter of the book. The overall goal of the book is to get readers to think about life more deliberately, to plan for the future without forgetting to enjoy the present, and to have the most exciting and satisfying ride on life's roller coaster. The author recommends that readers start actively thinking about the life experiences they want to have, whether large or small, free or costly, charitable or hedonistic.

Chapter 2

The second chapter, "Invest in Experiences," opens with the story of the author's roommate, Jason Ruffo, who took three months off work to backpack through Europe. Jason borrowed money to finance the trip and, despite the high interest, felt it was a bargain because of the life experiences gained, stating that they were priceless and could not be taken away. The author contrasts this with his own hesitance at the time, and notes that Jason did not have a plan to invest in experiences, but rather was led by his instincts. The author's aim in the book is to encourage readers to be more deliberate in their life choices and use reason and data to guide their decisions. The chapter emphasizes a quantitative way of thinking about life experiences.

The author introduces the idea that your life is the sum of your experiences, and all of your experiences ultimately determine who you are. The richness of these experiences determines how full a life you have led. The author argues that one should deliberately plan for the kinds of experiences they want for themselves, rather than following a default cultural path. Without planning, people may reach the end of their lives without having had the kind of journey they would have actively chosen. The author quotes a line from the butler of Downton Abbey, "The business of life is the acquisition of memories. In the end that’s all there is". He recounts his father's final years when his physical abilities were greatly diminished, so the author gifted him an iPad full of digitized memories of his college football days. This gift allowed his father to relive his past and brought him great joy. The author realizes that people "retire" on their memories, and when they are too frail to do anything else, they can still experience pride, joy, and nostalgia by looking back on their life.

The author clarifies that he is not suggesting that people should be like the grasshopper, failing to save for the future, but that culture tends to overemphasize the virtues of the ant (hard work and delayed gratification) at the expense of other virtues. He is seeking to bridge the gap between the ant and the grasshopper, helping the reader find the right balance between working and playing. He quotes the moral of his favorite version of the fable, "There is a time for work and a time for play" and suggests that tools will be provided to help the reader discover the right time for both.

The author then introduces the concept of assigning numerical value to experiences, as if earning points in a game. He suggests that peak experiences earn many experience points, and small pleasures earn only a few points. The number of points assigned to each experience is subjective and varies from person to person. Some people may enjoy gardening, while others would rather not, so gardening may be assigned different point values depending on the person. If you add up all of the points for your positive experiences from a given year, you get a number that can be represented as a bar on a chart, forming a “fulfillment curve”. The higher the number, the higher the bar. By managing the trade-off between earning money and having enjoyable experiences, the height of these bars can be changed.

The author asks the question of whether experiences are truly an investment, since they take time and money. He then introduces the idea of a "memory dividend", explaining that memories of past experiences pay dividends over time. He notes that while the recollection may only bring a fraction of the original enjoyment, memories add up to make you who you are. This is why people value photo albums so much; they realize that while material objects can be replaced, memories are priceless. The sum of these dividends is part of the overall value of an experience. A vacation, for instance, can lead to many instances of showing pictures, reminiscing, or giving advice, all of which add to the enjoyment. Sometimes the memories may actually bring more enjoyment than the original experience itself.

The memory dividend means that buying an experience not only buys the experience itself, but also all the dividends that experience will bring for the rest of your life. The author uses the concept of experience points to illustrate how memory dividends add to the original experience. He explains how the memory dividend can sometimes compound, like money in a bank, whenever you share memories with others, which can lead to communication, bonding, and helping others, making one plus one more than two. Positive experiences are contagious and release more energy than expected. The author cites his friend Paulie as an example of someone who focuses too much on the financial return of investment when thinking about buying a vacation property in Central America.

Finally, the author notes that it pays to invest in experiences early. The earlier one starts, the more time one has to reap the memory dividends. Starting in your twenties, rather than your thirties, will give you a longer tail of memory dividends. Conversely, the closer you are to death when you start having wonderful experiences, the fewer dividends you will have. The chapter includes a diagram that depicts how memory dividends add to the initial fulfillment curve.

Chapter 3

The third chapter, "Why Die with Zero?", begins by stating that living a full and optimal life requires deliberate action rather than following the path of least resistance. The author argues that people need to stop living on autopilot and steer their lives in the direction they want to go. He notes that autopilot operates in many areas, including how people earn and give away money and that each form of autopilot can waste life energy, requiring different strategies to eliminate this waste. This chapter focuses on the waste that comes from earning and saving more money than one will ever enjoy and proposes a solution for removing that waste.

The author uses the example of a wealthy individual, John, who is facing death and realizes that he has not fully lived. John's situation is portrayed as an extreme case, however, it is not unique, and the author notes that many people feel they can never get enough. The author states that no matter who you are, if you spend your life acquiring money and then die without spending it, you have wasted precious hours of your life which can never be recovered. He gives the example of dying with $1 million or $50,000 left over, noting that is equivalent to that much in experiences that were never had. The author's training as an engineer leads him to hate waste, and he finds the squandering of life energy the worst form of waste and therefore finds it logical to want to die with zero. The goal is not to reach zero before death, but to have as little as possible left over.

The author clarifies that the goal of dying with zero is so clear and important that he wants to immediately discuss how to achieve it. However, he acknowledges that common questions and objections must be addressed first. He notes that people can leave money to people and causes they care about, but those people and causes would be better off getting the wealth sooner rather than later, asking "why wait until after you die?" He also states that whatever amount is given to others becomes their money, not yours, and when he talks about dying with zero he is talking about your money. Planning what and when to leave money to children is discussed in a later chapter.

The author addresses the concern that one might need to save money in case of a medical emergency at the end of one's life. He notes that there is a difference between living a life and merely being kept alive. He states that he would rather spend on the former, than work to save for months on a ventilator with a low quality of life. Instead of engaging in "precautionary saving", he will let the cards fall where they may, and notes he'd rather die when the time is right than sacrifice better years to squeeze out a few more days. The author suggests long-term care insurance as a way to make sure one is covered without having to save up massive amounts of money that might never be used. He states that for any future worry, there is an insurance product to protect you, but one must consider the cost of the insurance.

The author attempts to show the reader why dying with zero is a worthy goal and a way to prevent wasting life energy. He then acknowledges that most people are doubtful of the feasibility of actually hitting this goal due to the uncertainty of how long they will live. The "how" of achieving this goal will be discussed in the next chapter.

The chapter concludes with recommendations for those who are resistant to the idea of dying with zero. It is suggested that they should try to identify the source of this psychological resistance. If someone loves their job, they should identify ways to spend their money on activities that fit their work schedule.

Chapter 4

The fourth chapter, "How to Spend Your Money (Without Actually Hitting Zero Before You Die)," addresses the practicalities of implementing the "Die with Zero" philosophy. The author acknowledges that dying with exactly zero is impossible because it would require knowing the exact date of one's death, which is something that is not knowable.

The chapter shifts its focus to tools and strategies for approaching the goal of dying with zero, recognizing the need for a balance between spending and ensuring one does not outlive their resources. The author references financial products that can help, but also makes it clear that he is not an expert in this area. He uses the analogy of needing a car to drive across the country, not necessarily needing to be a mechanic, to justify discussing some basic elements of financial products without being a certified financial advisor.

The author discusses annuities, emphasizing that they should be viewed as insurance against the risk of outliving one's money rather than as investments, which he notes they are not good at. Annuities involve giving a lump sum to an insurance company in return for guaranteed monthly payouts for the rest of one’s life. The author explains that these payouts are typically higher than what someone might feel comfortable paying themselves to ensure they don't outlive their money. He uses the example of the "4 percent rule," a popular guideline for retirement spending that suggests withdrawing 4% of savings each year of retirement, and states that annuity payouts will likely be more than this and are guaranteed for life.

The chapter explains that the closer one gets to the goal of dying with zero depends on an individual’s risk tolerance. Those with a low tolerance for risk may opt for annuities or a large cushion of savings, while those comfortable with more risk need less of a cushion. The author highlights the difference between thinking about risk tolerance and acting out of blind fear. He cautions against letting fear dictate financial decisions, which may lead to either frittering money away or playing it too safe and leaving a lot of money behind.

The author stresses the importance of understanding what problem you're trying to solve when working with financial advisors, noting that some advisors may not recommend annuities because they are paid a percentage of "assets under management," which they are incentivized to accumulate, meaning they would lose assets if they were used to purchase an annuity. The key goal, the author argues, is not maximizing wealth but maximizing total life enjoyment, and any financial plan should be aligned with that objective. The author encourages readers to make “maximize total life enjoyment” a mantra, and to make it clear to advisors that the goal is to get as much enjoyment as possible from savings without outliving them.

The chapter then shifts to strategies for spending down money, stating that it is as important as not running out of money. It introduces the concept of tracking one's health to know when to start spending more, particularly when to “crack open your nest egg”. The author notes that it also means knowing one’s projected death date and annual cost of just staying alive, which are used to calculate the bare minimum needed. All savings above this amount should be aggressively spent on enjoyable experiences. The author also argues that spending should not remain constant, but rather increase in earlier years, such as one's fifties and sixties, when health and interests are more robust than later in life.

The chapter emphasizes that, while humans have evolved to survive, they also want to thrive. The human brain is "wired to be irrational about death" and this means people often avoid the topic, behaving as if it will never happen, and failing to plan for it. The author is not suggesting to live each day as if it were the last, but rather to balance living in the present with planning for the future, tilting the balance as one's death date gets closer. The author criticizes people who claim they are putting their children first, while simultaneously waiting until death to provide for them. He argues that generosity should happen during one's lifetime to have the greatest impact.

The chapter cites research showing that the probability of receiving an inheritance is highest at around age 60, and that a large percentage of wealth transfers occur after death rather than during the benefactor's lifetime. It also suggests that bequests are often a mix of intentional and unintentional, with some money simply being leftover from precautionary savings.

The author restates that money is a means to an end, with the ultimate goal being to maximize lifetime fulfillment. He argues that just as parents seek to maximize their own fulfillment, they should also seek to maximize their children’s, which can mean spending time with them. He emphasizes that time with children is an important experience to give and should be valued because memories of parents have a lasting effect. The author stresses that, in the end, a person's legacy isn’t money, but time spent with loved ones and the quality of those relationships.

The author emphasizes the need to be generous while alive, criticizing the idea that leaving money to charity or children after death is the height of selflessness because dead people can't give money or do anything at all. He also uses the example of Chuck Feeney, who gave away more than $8 billion during his lifetime, as a role model for giving while living. He also notes that, because charities and other institutions prefer to get money now, donors should also think not just how, but how soon, their gifts will be used.

Chapter 5

The fifth chapter, "What About the Kids?", tackles the common question people have about the concept of dying with zero: what about leaving an inheritance for their children? The author argues that leaving a large inheritance is not always the best way to help your children and that often giving money to your kids sooner rather than later is more beneficial.

The author emphasizes that once you give money to your children, it becomes their money, not yours, so there's no need to plan to have money left over for them. The focus should be on your own money, which you should be spending down to zero. He suggests a deliberate plan for what to leave to whom, and when. The author poses the idea of whether you are "putting your kids first" if you wait until you die to show generosity. He argues that dead people can't give money away or do anything, and putting your children first means giving them money much earlier when it can have the most impact.

The author states that he has already separated his children's money from his own, which he will spend down to zero. The author uses the example of a woman named Virginia Colin who struggled financially for years, even while her mother had significant resources. After her mother's death, Virginia received a large inheritance along with her siblings. This example highlights that waiting to distribute wealth after death may not be the most effective strategy, as the children may need the money sooner. The author's own children have educational savings plans and trusts funded by him, which is their money, not his. His stepson received 90% of his inheritance in the form of money to buy a house, noting that he would not wait until he was 65 to give him the rest.

The author shifts the conversation from money to experiences. He reminds the reader that the goal of life is not to maximize income and wealth, but to maximize lifetime fulfillment, which comes from experiences and lasting memories of those experiences. Just as you are trying to maximize your own fulfillment, you should also be trying to maximize your children's fulfillment. One key experience you can give to your children is the time you spend with them, because the memories your kids have of you have lasting effects for better or worse. Young adults who received more affection from their parents have better personal relationships, and lower rates of substance abuse and depression.

The author recounts the story of a friend who received a massive fortune from his father with whom he had a poor relationship growing up due to the father's constant pursuit of wealth. The friend's childhood was miserable despite the family’s wealth and he now struggles to enjoy time with his father, demonstrating that material wealth alone is not enough and may not be what your children value most. He argues that time with you is a crucial experience and your legacy shouldn’t be measured in dollars alone.

The author also challenges the idea that leaving money to charities is a selfless act, explaining that it is not possible to determine if a decision is good or bad without knowing what a person wants, as everyone has different preferences. He argues that giving to charities while living is more impactful than giving after death. The author references a study showing that the social returns to schooling at the secondary and higher education levels are above 10% per year. Therefore, charities would benefit more from getting the money now rather than later. He notes that some charities, however, prefer to grow their endowments and may not use the money right away.

The author discusses the concept of "giving while living," citing Chuck Feeney as a great role model who gave away more than $8 billion of his wealth while living and chose to live frugally. This approach allows philanthropists to see the impact of their giving firsthand. The author argues that anyone can adopt this philosophy, not just the wealthy, even sponsoring a child through an organization like Save the Children for a relatively small amount of money per year, having a noticeable impact.

The author uses the example of Sylvia Bloom, a legal secretary, who left a large amount of money to charity after living frugally, arguing that, although well-intentioned, that the gift could have had a bigger impact if given when she was alive and able to direct how it was used. He concludes that you can't be generous when you're dead.

Chapter 6

Chapter 6, titled "Balance Your Life," begins by revisiting the author's experience with his boss, Joe Farrell, who advised him to spend more of his money rather than saving it, given that his income would likely increase in the future. This idea, that it’s rational for young people to spend more, is supported by many economists and counters the typical advice to save from a young age. The author notes that economist Steven Levitt received similar advice from a senior colleague, who had in turn been advised by Milton Friedman, that young people should be borrowing and spending, not scrimping and saving. The author uses this to highlight that traditional advice may not always be optimal for maximizing life experiences.

The chapter introduces the idea of the 50-30-20 rule as a way to maintain financial stability, where 50 percent of income is allocated to must-haves, 30 percent to personal wants, and 20 percent to savings and debt repayment. While the author acknowledges the rule’s popularity, he argues that it’s not sophisticated enough for maximizing lifetime fulfillment because the optimal balance will vary from person to person and will shift with age and income. The same ratio of spending to saving cannot be right for everyone, nor should the savings percentage be the same at 22 as it is at 42 or 52. This implies that a more nuanced approach is required for truly optimizing one's life.

The author uses the idea of a limited lifespan to argue that the balance between living for today and planning for the future is constantly shifting. The further back in time you go from your deathbed, the more the balance shifts. The author emphasizes that people tend to forget this logic and act as though they have forever, despite not having an infinite amount of time. This is why people must not live on autopilot and must be deliberate about allocating their life energy.

The author points out that there is no one-size-fits-all rule, as everyone's situation is different. How much one should save depends on factors like how fast one's income grows, where one lives, and how fast one's savings grow.

The author talks about health, explaining that the compounding effects of poor health can negatively impact lifetime fulfillment and experience points. He argues that even small steps to improve one's health now can lead to vastly increased total experience points. While older adults tend to spend the most on healthcare, earlier investments in health would yield greater lifetime fulfillment. He notes that preventative steps like healthy eating and strengthening muscles improve health and make all experiences more enjoyable. Simple, everyday activities become more enjoyable with better health.

The author then shifts the focus to the idea of exchanging money for free time, especially during middle age when people tend to have more money than time. He uses the example of outsourcing laundry to illustrate how spending money on services to save time can be worthwhile. If work earns someone $40 an hour, two hours of their time is worth $80, so spending $50 on laundry services would be worthwhile even if not spending the time to earn more money. The author argues it's about using time to take your kids to the park, to read, or to do whatever you would enjoy more.

The author references the app he developed with an economist that takes into account individual circumstances to calculate an optimal spending plan. While he notes that the app is not necessary, it can help those who want to squeeze out every bit of life energy. The book provides guidance on maximizing life energy, but the app can make the process even more optimal by analyzing variables and determining the best course of action based on different scenarios. The app's functionality is explained further in the appendix.

Finally, the author introduces the idea that we all experience multiple deaths throughout our lives, as we pass from one stage to another. This idea of transition between phases is expanded in the next chapter.

Key Points of Chapter 6:

Chapter 7

This chapter, titled "Start to Time-Bucket Your Life," introduces the concept that humans experience multiple "deaths" throughout their lives as they pass from one life stage to the next. This idea suggests that life isn't one continuous experience but a series of phases, each with its own unique characteristics. This chapter explores the implications of this idea and presents time bucketing as a tool for planning life experiences accordingly.

The author emphasizes the importance of living a life true to oneself, instead of living according to the expectations of others. He notes that many people at the end of their lives regret not pursuing their dreams. He argues that American culture often prioritizes hard work and earning money to the exclusion of other important values like leisure, adventure, and relationships. As a result, people often regret not making different choices. The author says, "No one ever regrets not having spent more time in the office". The author recognizes that this type of thinking about death and regrets can be depressing, but that thinking about impending loss can actually make people happier.

To illustrate the point, the author describes an experiment where college freshmen were asked to imagine that they were moving away in 30 days, and to plan their next 30 days accordingly. The students were urged to savor their remaining time at college and to make a full and conscious effort to treat their time as the scarce resource that it is. This led them to engage more fully in the present moment. The author notes that this effect is similar to the way people behave when they go on vacation, where they plan to maximize their experiences because they know that their time is limited. The core idea is that recognizing the finite nature of each phase of life can help people make the most of their time.

The concept of having finite phases in life is separate from the concept of money, though money can be a factor in what experiences are possible in each phase. The author notes that people often have dreams that they keep putting off. He suggests the tool of time bucketing to raise awareness of the phases in life, which will help people plan their experiences and avoid delays. The author recommends drawing a timeline of your life from now to the grave and then dividing it into intervals of 5 or 10 years, with each interval being a "time bucket".

The author suggests making a list of key life experiences that you want to have. This list should be a unique expression of who you are, as your life experiences are what make you who you are. At this point, the author suggests not to think about money, as that is a distraction from the overall goal of envisioning what you want your life to look like. Once you have the list, you should assign each pursuit to specific buckets, based on when you'd ideally like to have the experience. Again, you should not think about money, but about the point in your life when each experience would be best.

The time bucket list is the opposite of a typical bucket list, which is a list of things that people want to do before they "kick the bucket". A traditional bucket list is often created by older people who are reacting to their mortality, and are therefore racing against time. By contrast, time buckets are a proactive way to plan for your life. You are looking ahead and planning the various activities, events, and experiences that you would like to have. Time buckets allow you to plan your life proactively, while a bucket list is reactive.

Chapter 8

Chapter 8, titled "Know Your Peak," begins with the author's experience of celebrating his 50th birthday, which was preceded by an even more memorable 45th birthday celebration, where he brought together all of his family and friends in St. Barts. The author then poses the question, how do you determine the optimal balance between spending for the present versus saving for the future? He notes that one way to answer is by considering year-to-year spending, as discussed in chapter 6, where the optimal balance shifts due to changing health and income. A second way to answer the question, which is the focus of this chapter, is by looking at lifetime savings as a whole.

The author argues that his advice diverges from conventional wisdom, which focuses on accumulating wealth, and that one should instead find the point in life when net worth is the highest it will ever be, which he calls the "net worth peak" or simply "your peak". He questions why net worth can't just keep going up, and asserts that the goal is to maximize lifetime fulfillment, which requires allocating money and free time at the right ages, given the reality of declining health and death. Some years, it makes sense to save less to spend more on meaningful life experiences, while other years, it makes sense to save more for better experiences later. The timing of one's peak should not be left to chance; it must be deliberately determined to get the most out of your money and life. The author says that guidance on how to pinpoint this date will be provided later in the chapter.

Before discussing how to spend down one's money, the author emphasizes the importance of making sure you have enough to live on for the rest of your life, acknowledging that many people are not saving enough for retirement. He notes that his advice is based on his own modeling and is not a substitute for advice from a financial professional. The author defines a savings threshold as the minimum amount of money needed to survive without any other income, which is based on avoiding the worst-case scenario (running out of money before you die). Once you meet this threshold, you do not need to work for money and can begin carefully dipping into your savings.

The author explains that the threshold is a number and might be lower than what people are already on track to save since it is based on survival, not necessarily on thriving. He clarifies that even a stock/bond portfolio does not always earn interest above inflation and uses an example of a $212,000 savings, $12,000 annual spending, and 3% above-inflation interest to show that the initial amount does not shrink as much as one might think due to the earned interest. He notes that there is a formula (present value formula for an annuity) to calculate how much is needed to generate a given annuity, which reveals that the initial $212,000 will last nearly until the end of the 25-year period. The author provides a rule of thumb of 70%, where you need to save only 70% of the cost of survival times the number of years, and that interest will make up the rest. For example, to have $300,000 for 25 years of $12,000 annual expense, you only need to start with $213,210.12. If the interest rate is higher, then less would need to be saved, and vice versa. He reminds the reader that multiple sources of assets can be used toward reaching the survival threshold, such as equity in a house, reverse mortgage, and annuities.

The author then clarifies that once the survival threshold is met, one can begin to think about when to break open the nest egg for maximum lifetime fulfillment. The peak is a date, not a number, tied to your biological age. The author acknowledges that many people have been trained to think of savings in terms of numbers, such as having $1 million saved before starting to draw down, and that there is no shortage of suggestions for what that number should be. He notes that experts provide more personalized advice based on cost of living, life expectancy, and interest rates, however, the advice still focuses on hitting a financial target, while the author's advice focuses on hitting a date. He explains that his advice does not mean you have to quit a job you love, as long as you increase spending accordingly, otherwise there is a risk of dying with money left over, which defeats the purpose.

The author acknowledges that some people are "living the dream" by doing what they love for a living, but that these people are few and far between. If one is more in love with their paycheck than the daily experiences at work, then they should do a "gut check" on their life and determine what they really want to get out of it. If one is not ready to quit their job but wants to make the most of their money, they should start spending more, and if possible cut back on work hours. He notes that "phased retirement" programs are not that common, though more common in education and high tech, and some companies may offer informal programs.

The author addresses the challenge of "decumulation," which means spending down money after one has reached their net worth peak, noting that most people save for too late in life. He explains that one's real golden years of health and wealth are between the ages of 45 and 60. People usually spend less in old age due to declining health, which prevents them from spending on experiences. Unless one spends significantly more in their middle years, they will fail to die with zero. The author clarifies that he does not mean that one should blow all their money before 60, but to realize that time moves in one direction and it takes away opportunities. One must save for the time when they are no longer working, and plan to best use every year of one's life. Knowing that you have enough money to last for the rest of your life should provide peace of mind. The chapter includes a graph of "Spending Over Lifetime" illustrating the concepts discussed.

Chapter 9

Chapter 9, titled "Be Bold—Not Foolish," focuses on the idea of taking risks when you have little to lose, arguing that it’s often riskier not to take a chance. The author uses the example of Mark Cuban, who started his entrepreneurial journey at a young age, selling trash bags, stamps, and giving disco lessons to pay for college. He eventually went to Dallas with very little money, sharing an apartment with several other people and sleeping on a beer-stained carpet, before becoming a successful businessman.

The chapter introduces the concept of asymmetric risk, where the upside of possible success is much greater than the downside of possible failure. When faced with asymmetric risk, being bold makes sense. In situations where the downside is low or nonexistent, and the upside is very high, it’s riskier not to make the bold move. The emotional downside of not taking a chance is a potential lifetime of regret and wondering “what if?” The emotional upside of taking a chance includes the sense of pride at pursuing a goal wholeheartedly, and positive memories regardless of whether the outcome is what was expected. The author refers to this as another form of the "memory dividend," where looking back, one will remember their actions in a positive light. Therefore, being bold is an investment in future happiness.

The author emphasizes that many people fail to take advantage of low-risk opportunities because they magnify the downside in their minds, imagining the worst-case scenario even if it’s not realistic. They don’t recognize the asymmetry of the risk they face, making it seem as if disastrous failure is as likely as any kind of success. The author uses the example of a young woman, Christine, who was unhappy selling plastic countertops. He urged her to quit her job, even without having a new one lined up, as her job was preventing her from seeking better opportunities. Although quitting was a risk, the author notes that her downside was not as bad as she imagined, as she could get another job, even as a waitress, while figuring out what she wanted to do.

The author acknowledges that some readers may feel his personal experiences do not apply to them, since not everyone has the opportunity to make a lot of money in trading, or have a "cushy" job to leave. However, he states that the logic of his experience works on any scale, from someone who leaves a high-paying job, to someone with very little money. Examples given include a person working at Burger King taking night classes to learn programming or a woman starting a food truck business. In all cases, the bold path, despite its uncertainties, has the potential to be more rewarding financially and psychologically than the safer path of quiet misery.

The author reminds readers that there is a difference between low-risk tolerance and plain old fear, and that fear often magnifies the actual risk. He encourages readers to think through the worst-case scenario and consider all the safety nets available, such as unemployment insurance, private insurance, and help from family. With these safety nets in mind, the worst-case scenario is probably not as bad as one might think, with a limited downside and potentially infinite upside.

The author concludes by acknowledging that the task of dying with zero is impossible. Despite following all the rules in the book and tracking health and finances closely, it is unlikely anyone will die with exactly zero. He states that the goal of dying with zero serves to change the autopilot focus from earning and saving to living the best life possible. Aiming to die with zero pushes people in the right direction, ensuring they get more out of life than they would otherwise. Just as people try to emulate Jesus or Moses, even though perfection is unattainable, the goal of dying with zero serves to help people get closer than if they had never tried. He urges readers to not wait to live their life, but to chase memorable experiences, give money to their children when it is most helpful, and donate to charity while they are alive. The chapter ends by reminding the reader that the "business of life is the acquisition of memories".