Why Some People Plan to Run Out of Money in Retirement: Perspectives on Financial Planning
Title: The Controversial Concept of Intentionally Running Out of Money in Retirement
In a society that emphasizes the importance of saving and preparing for retirement, the idea of intentionally running out of money in retirement may seem counterintuitive. However, there are valid arguments for why someone might choose to do so, particularly towards the end of their life.
Two individuals, Jay Zigmont and Chris Gleason, shared their perspectives on this unconventional approach to retirement planning. Zigmont, a financial planner and founder of Childfree Wealth, explained that many of his child-free clients aim to die with zero money left, preferring to enjoy their wealth during their lifetime rather than leaving a large inheritance.
Gleason, the founder of Simplicite Tax Loans, highlighted the philosophical aspect of this decision, viewing excess wealth as a missed opportunity to positively impact others in need. He emphasized the importance of redefining our concept of “needs” in retirement and avoiding the trap of accumulating unnecessary luxuries.
Despite the rationale behind intentionally running out of money in retirement, the fear of not having enough remains a common concern for many individuals. Gleason acknowledged this fear but emphasized the importance of living a meaningful life and leaving a positive impact on the world, whether through financial generosity or personal fulfillment.
Ultimately, the decision to intentionally run out of money in retirement is a personal one, influenced by individual values, beliefs, and priorities. Whether one chooses to spend their wealth extravagantly or leave a modest inheritance, the key is to align financial decisions with personal values and goals.
As retirement planning continues to evolve, the concept of intentionally running out of money challenges traditional notions of financial security and inheritance. It prompts individuals to reflect on their values and priorities, ultimately shaping their approach to retirement and legacy planning.