Here is How You Can Supplement Social Security


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There is a growing worry among Americans that Social Security won't be there when they retire. Even if it's there many more worry that it still won't be enough to make ends meet. That's why you need to start thinking of ways to supplement your social security, with Master Limited Partnerships, or MLPs, being a real solid option to consider.

Investing in MLPs like BreitBurn Energy Partners (NASDAQ: BBEP), Enterprise Products Partners (NYSE: EPD) or Kinder Morgan Energy Partners (NYSE: KMP) would make a solid supplement to Social Security. Each owns stable, boring assets. BreitBurn Energy Partners, for example, owns thousands of mature oil and gas wells across the U.S. Meanwhile, Enterprise Products Partners and Kinder Morgan Energy Partners own tens of thousands of miles of energy pipelines as well as processing plants and storage facilities.

These boring assets, however, produce a lot of excess cash flow. A majority of that cash flow is yours to keep thanks to a special tax advantage these companies have been given by the IRS. It's that advantage that allows these companies to pay large distributions to their investors, which can go a long way in supplementing Social Security.

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  • Here is How You Can Supplement Social Security

    1. 1. Here is How You Can Supplement Your Social Security Photo credit:
    2. 2. Worried about Social Security? You are not alone! A 2011 Washington Post-ABC News poll found 81% of Americans were worried that Social Security was veering severely off-course.
    3. 3. Worried about Social Security? Another poll found that 27% of Americans were “not at all confident” they’ll have enough money when they retire.
    4. 4. Worried about Social Security? The government has done little to stop these fears. Photo credit: Flickr/Jason Ippolito
    5. 5. Worried about Social Security? That’s why it’s time to take matters into your own hands and start supplementing Social Security. NOW!
    6. 6. Worried about Social Security? One important option to consider – Investing in Master Limited Partnerships.
    7. 7. Worried about Social Security? What is a Master Limited Partnership? -It’s a tax advantaged entity that passes all of its income to YOU.
    8. 8. Worried about Social Security? Investing in a Master Limited Partnership only costs you an extra 9 minutes a year…
    9. 9. Worried about Social Security? …but those 9 minutes will put your retirement worries to rest.
    10. 10. Worried about Social Security? It will free up your golden years for what matters most to you.
    11. 11. Spend more time at the beach…
    12. 12. …or with family. Photo credit: Flickr/Chris Harrison
    13. 13. Instead of working to make ends meet. Photo credit: Brenda Gottsabend
    14. 14. Here’s where you start. Three Master Limited Partnership ideas that can start supplementing your social security today.
    15. 15. BreitBurn Energy Partners, L.P. • BreitBurn owns an interest in more than 5,000 stable oil and gas wells across the U.S. NASDAQ: BBEP Photo credit: Flickr/ Jonathan Wheeler
    16. 16. BreitBurn Energy Partners, L.P. • Current oil and gas properties expected to produce for at least 15 years. • Future acquisitions will keep production flowing and growing in the years ahead. • More than 70% of its income is locked in for the next two years due to oil and gas hedges. • Currently yields: 9.78% • Distributions are paid monthly and have grown 33% since 2010. Key Characteristics Photo credit: Flickr/ Jonathan Wheeler
    17. 17. Enterprise Products Partners L.P. • Enterprise owns more than 50,000 miles of oil and gas pipelines across the U.S. NYSE: EPD Photo credit: Flickr/Ray Bodden
    18. 18. Enterprise Products Partners L.P. • Around 80% of its income is locked in by fee- based contracts. • Visible growth pipeline of $6.8 billion in assets under construction. • Yields: 3.91% • Distribution paid quarterly and has grown for 39 consecutive quarters. Key Characteristics
    19. 19. Kinder Morgan Energy Partners L.P. • Owns 46,000 miles of oil and gas pipelines in North America. • Also produces oil in Texas using carbon dioxide. NYSE: KMP Photo credit: Kinder Morgan
    20. 20. Kinder Morgan Energy Partners L.P. • Cash flow diversified across five segments and secured by contracts and hedges. • Growth secured by a 5-year construction backlog of $6.5 billion. • Yields: 7.36% • Distributions paid quarterly and have grown by a 13% compound annual rate since 2006. Key characteristics Photo credit: Kinder Morgan
    21. 21. Key Takeaways • All three MLPs have secured cash flows due to long-term contracts or commodity price hedges. • Each has a history of growth by acquiring assets or by building internally. • This has yielded strong distribution growth to unit holders over the long-term. Photo credit: Kinder Morgan
    22. 22. Don’t worry about Social Security... …supplement it with MLPs. It just takes an extra nine minutes a year. Click the link below to get started.