YOLO vs. YOAMLAW
You’ve heard it by now: “YOLO!” - You Only Live Once. It’s catchy, it’s fun, and it’s hard not to get behind that carpe diem energy. I would like to propose an addendum: YOAMLAW.
I’ll admit, it doesn’t roll off the tongue quite as well, but it’s just as important
“You Only Live Once…but…Your Old Age May Last A While”
Those who conduct demographic research consider a “generation” to be about 25 years. This year, the oldest Gen Xers are turning 60. At birth, our average life expectancy was between 70 and 74 years. By comparison, our grandparents, who shaped our childhood picture of what retirement looked like, often had life expectancies between 47 and 59. No wonder their retirement seemed short and simple. Today, a Gen X retiree can expect 15–20 more years in retirement than their grandparents. That’s a long time to fund, and a long time to enjoy.
Which brings us back to YOLO. I understand the appeal of “squeezing all the juice out of life,” and nobody has ever gone broke selling people a message that they already wanted to hear. More and more, I’m seeing content aimed at retirees saying the same thing: spend more, worry less, don’t die with too much in the bank. It is an even easier story to tell after recent strong markets and the notoriously short memory of the average investor.
There is truth in YOLO. Nobody wants to underspend and miss opportunities, but here’s the catch: The risks aren’t equal.
Dying with a year’s worth of expenses left over? Your heirs get a pleasant surprise.
Running out of money with a year left to live? That’s a disaster.
The downside of overspending is far more severe than the downside of underspending. The two risks are not at all symmetrical.
Of course, everyone’s situation is different. That’s why planning matters. Doing the math and building a plan doesn’t just give you numbers; it gives you confidence in your spending decisions, whether you’re in your 40s or your 70s. That way, you can embrace the best parts of YOLO and respect the reality of YOAMLAW.
If you enjoy this type of content, you might enjoy my new book Waypoints: Tools and Tactics for Life’s Toughest Choices. It discusses concepts like risk symmetry and recency bias, while offering practical techniques for making better decisions and having more confidence in the ones you make.
You can learn more at www.waypointsthebook.com or purchase the ebook or paperback on Amazon by following THIS LINK.