The 7% Solution

Hits the Nail On the Head! April 1, 2012 By Grady Harp HALL OF FAMETOP 50 REVIEWERVINETM VOICE John H. Graves has brought to us a serious but very reader-friendly book about those items we are afraid to admit we don't understand and are uncomfortable seeking professional guidance for answers: the terms, definitions, differences, and significances of the various forms of investing money in order to have a secure retirement. Right off the bat he offers the following definition and purpose of this terrific little book: 'The book is called 'The 7 % Solution' because it will show you how your investment portfolio may generate as much as 7% distribution rate for your retirement income. You'll also learn how to determine your retirement needs, how to identify your resources of income in retirement, how to evaluate, select, monitor, and manage a variety of investments, from simple to complex.' Now, if that doesn't make the reader feel comfortable in what is to follow then read on.

In very easy to understand terms Graves gives ideas and explanations, follows these with worksheets to immediately relate to the information given thus far, and then slowly takes us step by step through chapters including: Bringing YOUR retirement into Focus; First Things First - Capturing Your Data; A Brief Word on Investment (really terrific chapter!); Stepping into Stocks; Embracing Bonds; Exploring Low Maintenance Investments - Mutual Funds, EFTs and CEFs; The Case for Annuities; Other Income Resources - Real Estate, REITs, Business Buyouts; Designing the 7% Portfolio; Maintaining and Monitoring your Portfolio; The Taxman Cometh; Getting the Most Out of Your Retirement Years. If the reader doesn't know the meaning of some of these abbreviations just mentioned, by the end of this book you will!

John Graves is aware that the Baby Boomer Generation is at the point of retirement and his advice is directed to those AT retirement age (and how to manage that if you haven't been fortunate enough to prepare) and for those who are now considering retirement age. His advice is grounded in reality, he doesn't make promises that his data can't support, and in general he comes across as a man who truly cares about giving us all a hand on living the retired life in an economy that is wholly undependable. This is a very handy guide to keep by your checkbook and your estate planning file. Graves' information is solid and applicable to everyone.

Key Boomer Questions Answered: Can I Retire? What Will I Need? How Long Will Portfolio Last? Can I Do This on My Own? April 2, 2012 By Thomas M. Loarie TOP 1000 REVIEWERVINETM VOICE Format:Paperback World traveler, independent financial advisor, and author, John Graves, gives-back in his "The 7% Solution" with a proven, step-by-step program for retirees (or those soon to be) that will provide for an affordable and comfortable retirement. The program is rooted in the author's 26 years of experience advising others how to become better stewards of their resources.

Better stewards means we need to fully understand some ideas that run counter to the common wisdom found in the generally agreed upon principles of financial planning and portfolio management. They include:

* When you retire, you will need less capital than what you have been told you need.
* Your annual income needs will fluctuate.
* You may live longer than you (and planners) think.
* Financial models used to design portfolios are cartoons. Follow them at your peril.
* The key assumption of most retirement planning tools - a 4% return - is too low a target. It almost certainly assures failure.
* Portfolio challenges we face are different from what a portfolio manager thinks we face.

The book's title, "The 7% Solution," implies that the reader will learn how to generate as much as 7% in annual income distributions. This will be useful for both investors who want to go it alone as well as those preferring financial advisors. For the latter group, the book's value will be in fulfilling his/her responsibilities on being aware and informed of investment strategies, income personal needs, and income vehicles (stocks, bonds, low maintenance investments like mutual funds, annuities, MLPs, BDCs, and other income sources like real estate and REITs).

Author Graves emphasizes our uniqueness throughout the book and urges us to avoid cookie-cutter investment strategies - simple diversification, asset allocation, investment theory du Jour - so often recommended by advisors. He also stresses the importance ofa sound financial education. Good financial decisions can be made when people have the information they need and when they understand what it takes to achieve their financial goals. Once people understand their options, they will know "how to choose what's right for them."

Graves believes most financial planners do not know how to do what he offers. Most are "simply asset gatherers who turn your hard earned savings over to a mutual fund or other financial construct"...and follow conventional wisdom. Those who hire a financial planner "are paying a king's ransom for fool's gold."

The "7% Solution" will answer the key questions we all face when challenged with retirement

* When can I retire?
* How much will I need?
* How long can I expect my portfolio to last?
* How should I respond to changes in economic climate?
* Can I really do this on my own?

Graves shows us that in managing our retirement well how we can be "in our power" and aligned with our calling. Good things tend to happen when we are in touch with and aligned with our calling.