Joe and I tackle questions about the complexities of early retirement at age 60 and the most efficient withdrawal strategies for lifelong security.
This episode explores both the technical and psychological aspects of “spending down”—from balancing Social Security timing with your investment accounts to deciding if you should spend every last penny before you’re gone.
We’re breaking down the numbers to help you create a “happiness factory” in retirement.
Listen Here
Apple Podcasts
Spotify
Youtube
Listener Questions
- Mike asks: I’m 57 and plan to retire at 60 with $1M in retirement accounts and a paid-off $500k home. I want to spend every penny I have by age 92. What is the best withdrawal strategy to live on as much as possible while dying as close to zero as I can?
- Kip (Callback) asks: We hear from a listener who previously wanted to retire but now finds himself loving his job—how does this change his long-term plan?
- Jesse asks: A caller is five years away from a retirement goal at age 53. What should his final checklist look like as he approaches the finish line?
Key Takeaways
- The Problem with “Die with Zero”: It is difficult to target a zero balance because we don’t know the exact “timer” of our lifespan. Predicting your health and energy at age 85 while you are only 60 is a statistical guessing game.
- Avoiding the “Jagged Edge”: Riding the absolute maximum safe withdrawal rate can lead to significant retirement anxiety. If you are constantly worried about the “sequence of returns” or geopolitical events, your money isn’t serving its purpose as a “happiness factory.”
- Retirement Data Limitations: Retirement as a concept is relatively new, and the last 60 years of data includes a prevalence of pensions that most current retirees don’t have. We cannot assume the next 30 years will mirror the last 30.
- Health and Vitality Variance: There is a tremendous variation in quality of life for those in their 80s. Some individuals maintain high energy levels late into life, requiring a much longer financial runway than someone in poor health.
Resources
- Die with Zero, a book by Bill Perkins: https://amzn.to/3P1ydBS
- Listen to Kip’s previous question: https://affordanything.com/episode627
- Stay in the Loop: https://affordanything.com/newsletter
- Join the YFRP waitlist: https://courses.affordanything.com/
- Don’t miss the YFRP Webinar! https://affordanything.com/rental2026
Chapters
Note: Timestamps are approximate and may vary across listening platforms due to dynamically inserted ads.
(0:00) The Retirement “Timer” Dilemma
(2:06) Mike asks: How do you mathematically die with zero?
(4:04) The “Jagged Edge”: Why efficient withdrawal rates cause anxiety
(10:00) Spending Stages: Is your 90-year-old self a different person?
(15:00) The Paul Merriman Rule: Why vitality changes your math
(20:00) The “Double Hit” of long-term care planning
(26:03) Kip’s U-Turn: What happens when you love the job you tried to quit?
(35:00) The Identity Crisis: Is it the work, or is it the autonomy?
(40:03) Managing the Chaos: Renovations, contractors, and sanity
(53:05) Jesse asks: The strategic bridge between Roth IRAs and Brokerage accounts
Thanks to our sponsors!
Policy Genius
Secure your family’s future with Policygenius. Head to Policygenius.com to compare life insurance quotes from top companies and see how much you could save.
CozyEarth
This spring, give yourself the kind of comfort that lives with you all day. Use my code AFFORDANYTHING for an exclusive 20% off.
Mintmobile
If you like your money, Mint Mobile is for you. Shop plans at Mintmobile.com/paula
Upwork
Upwork is a one-stop platform to find, hire, and pay expert freelancers. Visit Upwork.com right now and post your job for free.
