It's not your father and mother's retirement!
These days when you retire you don't just sit at home. Nope, instead you might be traveling to a far away destination like Ireland. We all live longer and our lives are so much more productive. So, that means we need to think differently about how we plan for the next twenty or thirty years of retirement.
- Income Investing. Anthony Davidow of Scwaab Center for Financial Research says, " I think it starts with a plan, but I do think maybe we need to revisit the plan. In the old days, you and I are veterans of this industry, but in the old days we used to have this magic formula and as you approached retirement, you automatically lived off the income that you were getting from your fixed income in your portfolios.
- Cash Flow Control. Robert Norton of Wealth Advisory Group says, "It's a cashflow game, money in, money out, and there are two levers to that. You may not be able to control as much as you'd like what you're getting from an income standpoint. You can control what you're spending, and to plan. We work with our clients and we do a detailed cashflow going out 20 years. We revisit that each year. It's done on an ongoing basis as opposed to a snapshot, and I think that's the most important thing is to monitor that cashflow on an ongoing basis, what's coming in and what's going out."
- The Value of ETF's. Robert Dannhauser from CFA Institute gives some advice. "I'm a fan of ETFs generally but of course know what you own. So they're cheap, they're diversified all good news, but there are also some potentially nasty surprised in some flavors in the marketplace. So, you need to do a bit of research before you commit to that."
Watch the full interview above. And learn more about Jim Cramer's Boot Camp: How to Invest Like a Pro by clicking here for TheStreet's special section here.