Link adaptation, in particular adaptive coded modulation (ACM), is a promising tool for bandwidth-efficient transmission in a fading environment. The main motivation behind employing ACM schemes is to improve the spectral efficiency of wireless communication systems. In this paper, using a finite number of capacity achieving component codes, we propose new transmission schemes employing constant power transmission, as well as discrete and continuous power adaptation, for slowly varying flat-fading channels. We show that the proposed transmission schemes can achieve throughputs close to the Shannon limits of flat-fading channels using only a small number of codes. Specifically, using a fully discrete scheme with just four codes, each associated with four power levels, we achieve a spectral efficiency within 1 dB of the continuous-rate continuous-power Shannon capacity. Furthermore, when restricted to a fixed number of codes, the introduction of power adaptation has significant gains with respect to ASE and probability of no transmission compared to a constant power scheme.