The Seven Percent Solution-:You Can Afford a Comfortable Retirement by John H. Graves ChFC, CLU is a wonderful book which explains the retirement funding process in considerable detail.
The author very quickly concentrates on family retirement funding mechanisms like fixed pensions, fixed annuities, master limited partnerships and a whole host of investments that can supplement retirement cash flow until the end of life.
Each investment vehicle is explained extensively with financial schedules and data projections. The benefits, costs and downsides of each investment vehicle are set forth in plain language.
The good news is that the baby boomers have saved $12 trillion in equities and $8 trillion in bank deposits and inheritance. This money has been accumulated from a lifetime of earnings and the estates of their parents who were the World War I and II generations.
The author shows how to assemble an investment portfolio that can yield a seven percent return from such cash.
A retirement financial picture can change based upon health status, inflation or deflation, an increase or decrease in living expenses, inheritance and the need for less income in advanced age. A 65-year-old now has more than a 50% chance that at least one partner lives to age 90 or more - it is important to be prepared.
The use of Master Limited Partnerships is on the rise due to the popularity of oil and gas investments and the steady return on the original investment. For instance, Kinder Morgan Energy Partners (KMP) has produced a significant return on a sustained basis.
The author points to an MLP's ability to respond to economic conditions and financial discipline as important rules in making investment decisions. The MLP can have risk since the retained earnings are minimized by paying out more to investors.
Even the best investments can have risks, quite apart from the financial decisions made by the owners and management. Certain nuclear power stocks were operating predictably until the Daiichi Nuclear Facility debacle occasioned by the recent earthquakes in Japan.