This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Retire With Income: Boomers Need a Lesson From Dr. Seuss

NEW YORK (TheStreet) -- I have five kids. The oldest is 14, the youngest is 4, with the rest in between. I get all the reading time I want between 7:00 p.m. and 9:00 p.m., as long as I stick to children's books.

Dr. Seuss's famous work, "The Foot Book," is now burned in my brain, traveling so easily down my synapses, that I often find myself saying, during odd moments during the day, such as waiting for an elevator, "Left foot, left foot . . . "

Call me loopy, or sleep deprived, but I think there's something very important for investors in this book.

Specifically, I think the brokerage industry has gotten investors thinking too much about the left-hand side of their statements, which shows the growth of the portfolio and its total value, and not enough about the right-hand side, which details the income.

I was fine with this kind of thinking for younger investors with many years to retirement. But for Baby Boomers it's time to shift the mindset and learn a new investment language of retirement investing: Income, income, cash flow, cash flow.

To the consternation of many, Bill Gross recently said equities are dead. I don't think they're dead, but I do believe robust growth is dead for a few years. In its stead, investors need to think about the income they are realizing from their investments, with much less focus on the volatility of their investments.

Remember: Income, income, cash flow, cash flow -- especially the high levels of income that can be earned from stable companies around the world, producing real products and real cash flow. This should be the new mantra for Baby Boomers looking to maintain their standard of living in retirement.

As a result, I firmly believe Boomer investors need to go back to the kind of investing past generations did before the engineering of modern investment packaging and sophisticated investment technology. That is, they need to select individual stocks that will deliver income, maintain the kind of balance sheet that provides some measure of protection against market downdrafts and, finally, offer some prospect for growth, perhaps 2% to 3% annually above the income, or approximately equal to the rate of inflation.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,086.63 -26.91 -0.16%
S&P 500 1,987.01 +3.48 0.18%
NASDAQ 4,473.6970 +17.6810 0.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs