Forget Leaving a Fortune, It Might Actually Be Best to Spend It All

Traditional retirement planning encourages saving throughout your working years, often by living frugally. Yet the “die with zero”—or DWZ—movement advocates for spending and giving throughout your lifetime in order to increase your daily joy, comfort, and positive experiences.

Both approaches have different benefits and downsides, so we connected with an expert to help you figure out if it’s right for you.

What Is a “Die With Zero” Retirement?

With traditional retirement planning, you decide what you want your ideal retirement to look like and save accordingly. Plus, you might consider how much you need to save if you want to leave behind an inheritance after you pass away.

In contrast, the DWZ approach to retirement planning, takes multiple goals into account, according to Jill Fletcher, a certified financial planner with Cary Street Partners.

“It encourages you to maximize spending throughout your life, not just in retirement. The name “die with zero” assumes that you don’t need your money to outlive you, so it’s OK to spend it throughout your life, rather than hoarding for retirement,” she said.

Instead of focusing on optimizing wealth for retirement, DWZ is a call to action to optimize your wealth throughout your lifetime.

As Fletcher says, “a ‘die with zero’ mindset would tell you to take the Yosemite backpacking trip in your 30s and save the Yosemite Valley Lodge stay for when you are in your 70s.”

Benefits of a “Die With Zero” Mindset

With a DWZ mindset, you don’t have wait until retirement to start doing things you enjoy, living frugally while you’re in your 20s, 30s, and 40s. It’s a mentality that often prioritizes experiences over possessions, Fletcher pointed out.

Say creating family memories is a strong value of yours, DWZ would encourage you to take meaningful family vacations while your kids are young, rather than waiting to travel once you’re retired.

This doesn’t mean vacations should be overly lavish or expensive, as DWZ doesn’t suggest living beyond your means. Instead, this mindset recommends balancing your present joy with your long-term goals.

Fletcher notes that this mindset can help ease the transition to retirement, especially for those who have been exclusively focused on saving in their working years.

“Going from accumulating wealth to using your wealth can be quite a challenge for some fresh retirees,” she adds. “The DWZ mindset may potentially prepare someone for this shift that takes place in retirement.”

And the DWZ approach doesn’t preclude you from providing money to your loved ones. While you might not be able to give them an inheritance after you die, you can still give them gifts in smaller amounts throughout your lifetime.

“Gifting throughout your lifetime … can be done in a strategic, tax-efficient way,” said Fletcher. She recommends taking advantage of annual gift tax exclusions, which in 2025 allow you to give up to $19,000 to any individual without incurring taxes.

Downsides of a “Die With Zero” Mindset

Like any philosophy, however, DWZ comes with downsides, too. The biggest downside, said Fletcher, is not appropriately planning for risks.

“No one knows the exact date and time they will die, so there are risks that we must hedge against,” Fletcher said. These include rising costs of healthcare, long-term care, and living longer than expected.

When planning for retirement, you may find it helpful to rely on projections and reports like the Fidelity Retiree Healthcare Cost Estimate, which can help you predict healthcare and long-term care costs.

To help you predict how long you’ll live, you should evaluate your current health status and medical history. This can help you determine how long your retirement horizon will be.

Additionally, since DWZ is geared toward spending money throughout your lifetime, you could be at risk of outliving your money if you don’t end up saving enough for retirement.

“Focusing too much on present spending and losing sight of the need to continue to save and invest for longer-term goals can be a downside of DWZ,” said Fletcher.

The Bottom Line

It’s possible to work within a DWZ framework and ensure you have enough money in retirement. Consider opening tax-advantaged retirement accounts—like 401(k)s and traditional and Roth IRAs—and diversifying your investments.

In addition to putting money away regularly, earmark some money for travel or gift giving.

“Preparing for a retirement that protects against risks, such as long-term care needs, should not be put aside,” said Fletcher. “The DWZ mindset flirts with certain risks and factors while at the same time holding you accountable to living in the present.”