What does the perfect retirement look like to you? Are you excited to travel? Spend more time with family? Create new memories through interesting experiences? Enjoy your home? Bask in the financial freedom that comes with a well-padded Superannuation?
Retirement looks different for everyone, but one fact remains the same. Despite no longer working, you still need an income to keep up your preferred quality of life.
When we think of retirement investments, we think of our government-mandated superannuation funds, any assets we have (including our home that we hope to have paid off), savings, and sometimes, stocks and bonds. It’s rare that someone thinks of a solar system as an investment strategy. After all, how can energy from the sun turn into income for retirement?
What happens when you invest your money in a savings account or stock portfolio?
One of the most common and universal ways to store money is by using a savings account at your preferred bank. This strategy doesn’t promise beneficial returns, though. Given a generous 1.35% interest rate and $10000 to invest, within 40 years, you can save nearly $9000. In 20 years, you can save a bit over $3000.
Most financial advisors look for a 7% ROI on stock-heavy retirement plans for their clients. The chances that your account gains that return are dependent on luck and how long your money sits in that investment. Sixty years of compound growth can make a healthy sum if you’ve got the time for it. The less time you have, the more likely you could suffer a significant loss, especially if your stock portfolio is also your retirement plan.
What can you do when you invest in solar?
Solar is the gift that keeps on giving. A solar investment has both an up-front and long-term payoff so that you can feel the benefits now and when you retire. One of the more stable investments, solar energy won’t fluctuate with the market and won’t go down in demand. People will always need power!
- Save Thousands of Dollars
Save thousands a year by dramatically reducing your electric bill over the entire life of the system. That’s money you can put towards something you enjoy doing, such as holidaying with your family, finding a new hobby, or saving up for something big! As a bonus, the return from your solar investment isn’t taxable, so all that money is always yours!
By making use of the energy you generate every day with your solar system, you don’t have to rely on the grid and its rising prices for power! See up to an 80% reduction in electricity bills and significant savings every year!
- Increase the Value of Your Home
Solar power isn’t going away any time soon. With renewable energy sources on the rise and people and big businesses investing in green energy, adding solar panels and hot water systems to your home means adding value and sought-after products. With solar power becoming more and more popular by the day, this affordable investment is something you want to get ahead of the curve on.
- Pay Down Your Home Loan
By combining your mortgage with the investment of solar panels, an offset account will produce a 2.8% average return on mortgage interest. Although investing in solar energy may mean a more costly upfront payment, the money you save in the long run will make a more significant dent in your mortgage repayments than using that money to pay off large energy bills.
If you’re interested in learning more about how solar can be used as an investment strategy, contact us today!