Die Broke, Annuities, and Tax-Free Retirement Income

In this episode of the Divorce the IRS Podcast, Jimmy Miller discusses a retirement philosophy that has become increasingly popular: die broke, also known as die with zero.

The idea behind this strategy is to maximize retirement income and enjoy more of your money during your lifetime, especially when leaving a financial legacy is not a major goal. Jimmy explains why the concept can make sense in theory, but why trying to personally spend your portfolio down to zero without guarantees can create serious risks.

Jimmy also explains how the die broke philosophy can work together with the Divorce the IRS framework when lifetime income annuities are used properly, especially inside Roth IRA accounts.

In this episode, Jimmy discusses:

What the die broke or die with zero philosophy means
Why the concept appeals to many retirees and future retirees
The danger of becoming too frugal and never enjoying your money
Why aiming for exactly zero can be risky without the right structure
How lifetime income annuities can support a die broke strategy
Why guaranteed income may help reduce retirement stress
The risk of running out of money before running out of life
How annuities can allow retirees to spend both growth and principal
Why Roth IRA annuities can create tax-free lifetime income
The importance of understanding annuity rules before purchasing one
How fixed index annuities may help address inflation concerns

Jimmy also shares why dying broke can be a reasonable goal for some people, but only when the plan is built carefully and includes the right guarantees. When structured correctly, the goal is not simply to spend everything. It is to create a retirement income strategy that allows you to enjoy your money with confidence while reducing the risk of outliving it.

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