Need a Good Investment?
With interest rates as ridiculously low as they are, and the markets unpredictable at best, where do you put your money? Traditionally, equity mutual funds return 10% over time. If you own them, I don’t have to tell you about how they perform in a down market. Not to mention, if you do make money, then comes the tax man for his cut.
When you have to, (or want to) put more money in your pocket there are two ways to do it. One is to earn more, either by labor or investment. This option, though a good one, involves income tax. The other option is to save money on the things that you absolutely need. The bare necessities in this country are: Rent or mortgage, food, and utilities. When the first of the month rolls around, you have to pay these bills. Doing without electric and heat is not an option. So, if you can eliminate one of those bills, and still get the service you need, that is a solid decision.
OK, you know we are in the solar power business so let’s get down to it. If you can eliminate or reduce your LIPA bill, for let’s say, $250 per month, that is the same as earning $250 per month ($3000 per year) with one exception, no income tax due. You don’t get a 1099 for saving money. However the money is just as real, you can spend is as you see fit. You can even invest it in an IRA if you want, and get a tax deduction in the process. The next logical question would be; how much would you have to invest in a similar investment to get $3000 per year? Well, let see, in order to net $3000 per year after taxes, you would need to earn $4167 per year (28% tax bracket). To receive that number per year with no market risk, you can use a CD. The best rate I could find today is 3.05% on a 5 year CD. To earn $4167 per year, at 3.05%, you would have to invest $136,650. Then you would pay your taxes every year and net $3000.
To net $3000 per year with an investment in solar power, you would need to invest $16,168 (after LIPA rebate and tax credits). That is an 18.56% rate of return with no taxes or market risk. Of course, if you don’t want to use your own money, financing is available. Admittedly, all homes are different and the numbers will change with conditions like shading, and orientation but regardless, it beats 3.05% every day of the week. As an added bonus, solar will increase your home’s resale value and not increase your property taxes.
The only downside I could see is you can only do so much. There is only so much space on your roof and your LIPA bill is what it is. If you could invest $136,168 in solar, you would perceivably receive $25,362 per year, all things being equal. The only other thing is that it does take some effort. You will have to sit with me and go over the numbers, but everything else, permits, installation, and maintenance, will be taken care of by Long Island Power Solutions.
So what is stopping you? All you need to do is call L.I.P.S. at (631) 256-6022 or go online for your free estimate www.LongIslandPowerSolutions.com .
