In this post, I would like to explain my rationale in “The long view” that when I retire “[the principal] can decrease, but not to the point of it running out".

This was largely influenced by a book that I read a long time ago - "Die Broke" by Stephen M. Pollan. Also recently I found another book with similar concept, albeit with a different approach - "Die With Zero" by Bill Perkins.

Don't get me wrong. If possible, I would love to leave something behind.

But I classify inheritance into two types: tangible inheritance and intangible inheritance. (This is inspired by the three types of inheritance.)

Tangible inheritance is the assets that can convert into financial worth. Savings, a house, etc.

Intangible inheritance, on the other hand, cannot convert into financial worth (at least not directly). Experiences, memories, character, reputation, etc.

Money is not the only thing I want to leave behind. I want to leave behind memories and good characters. I want to have interesting experiences. And I want to minimise regrets.

"I've never heard anyone on their deathbed say, 'I wish I had spent more time with my business.'" (Lee Iaccoca)

The future is unknown. But instead of leaving “tons of fishes”, I would rather leave “memories of fishing, good skill for fishing, and fishing rods”.

Illustration

Let's say I work long and hard to accumulate 1000 🐟 when I die. I will not bring any of it with me. I will leave all this tangible inheritance behind.

Alternatively, I can lead a balanced work and life. Have lots of wonderful experiences and memories with family and friends.

In the end, I accumulate only 100 🐟 when I die. But I also leave a few “fishing rods” 🎣, knowledge, memories, and good character.

It makes zero difference to me when I am dead. But it will make a difference to the people I leave behind.

Which would my family rather have?

If I were them, I would rather get the second option. Less money, but not without. To live an interesting life, gain rewarding experiences, and make memories.

And I want to give this to them. It is also much more rewarding to me.

It is this pursuit that makes me look forward to growing older.

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Disclaimer: Anything I share is not intended as financial advice; I am merely sharing personal opinions and experiences. The information is of general nature and you should only use it as a place to start your own research and you certainly should do your own due diligence. You ought to seek professional financial advice before making any decisions.