Monday, May 21, 2012

The 7% Solution by John Graves

The 7% Solution
by John H. Graves
isbn 978-0983573128
Pub. date 4/1/12

From the author: Our parents taught us to live within our means during the fifties. We carry this lesson through life: wise habits of saving, debt management, tithing and frugality. These are our foundation for a comfortable retirement lifestyle. We can manage our retirement portfolio, on our own, with these precepts in mind. Look for companies with strong ‘free cash flow, low debt, capital commitments to their future and in support of their suppliers, customers and communities. These firms also pay good dividends. As shareholders, we want to enjoy these dividends. We also look to own bonds from firms with good debt management. A wise combination of income from these sources, as well as others, can earn us as much as 7% during retirement. You manage the portfolio to your income needs. You CAN do this yourself, or working with an advisor who listens to you. The good steward of his resources plants and harvests in tune with his season.

My Thoughts/Review:
Managing money can be overwhelming and sometimes a professional is needed. Don’t be nervous about your future, this book contains practical advice and gives compelling reasons for the importance of planning for a comfortable future. Throughout the book, different investment options are explained in ways that non-professionals will understand. You’ll learn how to start a financial plan and how to maintain and monitor the plan once it’s in place. We all want less stress in the financial area of our lives and Graves will give you the confidence you need to gain a handle on your personal finances. The interesting approach the author takes is in his following of his own advice for years, sort of being his own guinea pig. 

Graves assures the reader that no matter what the economy looks like, it is up to us to take control of our finances. The reality is that no one will care for your financial needs and know what you will need in your latter years more than you do. He shows you how to get a clear picture of what you will need in your retirement years by explaining clearly, concisely and coherently what to do.

He helps you to develop a worksheet that will lay out the reality of your current financial situation and where that will take you. You will then be able to realize whether or not you are heading in the right direction towards the “7% solution” in your retirement years. You can then determine where the strengths and weaknesses in your portfolio lie and what adjustments can be made to get the desired results.

Although, I’d never heard of John H. Graves before reading this book, I will be highly recommending this book to my friends and colleagues that are in the process of retiring. It is a great book for understanding strategic portfolio depth, sources of income, decreasing debt, and alleviating the stress of retirement, by being responsible, strategic, and intentionally proactive in developing a plan that works for you and providing for your family in your latter years. This book is helpful for young people who are just starting out and older folks who are nearing retirement.
Disclosure:  I received a copy of The 7% Solution gratis. Any opinions expressed are my honest opinions and were not impacted by my receipt of the free book. I received no monetary compensation for this post.

WHERE TO BUY - The book is available at a discount on Amazon.