How can you know which is the best retirement planning tool in the market? When the stakes are high, there is little room for error. Find out Dr. Wade Pfau's favorite retirement planning tools and strategies. He's the Professor of Retirement Income at American College and a CFA©. Wade and Doug debate the wisdom of using reverse mortgages in order to use your home as a way to generate retirement income. They also discuss the benefits of using a "time segmentation strategy" or a "bucket strategy" for retirement planning.

It's okay to use some of your portfolio's principal

Are you afraid to touch your investment principal, and only withdraw the interest? In today's low-interest rate environment, living off of interest alone is nearly impossible. So how do you know how much principal is safe to withdraw? Doug encourages investors to create Monte Carlo simulations to find the right amount of principal to withdraw from your portfolio. He explains what these simulations are and how to schedule withdrawals throughout your retirement. Watch a short animated video that explains how using Monte Carlo simulations can help you fine-tune your financial plan. To learn more about Dr. Wade Pfau visit his website retirementresearcher.com or read his book, Reverse Mortgages: How to Use Reverse Mortgages to Secure Your Retirement. You can also find him on Twitter @WadePfau. If you're not already receiving updates on new episodes, sign up now, and as a special bonus, receive Doug's free ebook The Retirement Planning Book.