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How to Stay Fully-Retired

How to Stay Fully-Retired

It’s one thing to be fully-retired, it’s quite another to stay fully-retired.

Successful retirees have a low burn rate relative to their assets and income. Traditionally, a burn rate is the amount of cash you burn through, or spend, in a given month. If your retirement income (pensions, social security, and investment distributions) is $7,000/mo, and you only spend $4,000, you have a relatively low burn rate. Spending just over half of what you earn, and saving the rest for a rainy day. But if you spend all $7,000, then you have a high burn rate.

Having a high burn rate means that, unless your income keeps pace with inflation, you will likely watch your standard of living decay over time. Nobody wants this.

Most people mistakenly focus on trying to make as much money as possible, to save even more, so that they don’t have to thoughtfully address their burn rates. This is incredibly shortsighted because it chains them to a lifelong pattern of waste. The bottom line is that burn rates and budgets are highly emotional topics. But they don’t need to be.

Through thoughtful financial planning, and pragmatic investment management, we can show you how to align your financial needs with your personal aspirations. In other words, we can teach you how to ensure that your retirement really means being able to live the life you love.

St. Croix, U.S. Virgin Islands