Money isn’t everything, but it is important. It is a tool that we use in our lives to function in society. Making money is essential to life. Investing is the way to multiply our own individual efforts to make more money. Solar is the best investment available to the New Mexican resident with guaranteed returns of 10% or higher and the added appraisal value to your home. It can’t be beat.

There are a lot of ways to invest out there, so let’s go over them.

CDs, savings accounts, and money markets have traditional been safe investments and a great place for your money. With such a low interest rate environment today, that money is actually losing buying power. Which makes it a terrible investment, even if it is safe. Inflation is eating up any return that money is promising to give back. Out of interest rate frustration, many investors have had to take on more risk through the stock market, real estate, or starting businesses for your returns. Of course, diversification in your portfolio is essential. With the federal tax credit, no sales tax, and the price of solar coming down considerably, I would like to recommend solar to be a part of every homeowner’s investment portfolio.

Stock market- We all know the stock market is crazy. With tons of different way to invest, it can be confusing. Stock, options, ETFs, mutual funds, annuities . . . and it goes on. Returns in the market often claim 8-12% but that is adding in all the people who get insider information, hedge funds, institutional investors, and IPOs that provide preferential treatment. I believe that the average return for the average clients after expenses is much closer to 3-5%.

Bonds- Municipal bonds, corporate bonds, and government bonds are all based off of the current interest rate and are doing very poorly. With rates at the floor, they can only go up, which will cause currently purchased bonds to be less valuable.

Real Estate- It’s always good to have some real estate in the portfolio, especially if it is providing income. Tax benefits from real estate such as mortgage interest and depreciation are great as well. New Mexico real estate prices aren’t nearly as volatile as other markets, so the strategy here is mostly to buy and hold. Returns take a long time to develop in most cases and come with a lot of headache and risks. Real estate, if done properly can be a great investment. However, it takes a lot of time and a lot of expertise. We would suggest coupling solar with your real estate.

You are already paying a bill. Solar will automatically be less than that current bill. The price of solar installation has dropped drastically. There is a 30% federal tax credit available, and there is no state tax that is paid on solar (Gross receipts tax). Adding in all of those factors we will typically save you 10-15% on your current bill, but it depends on how much your current bill is and which utility company you have. With solar, you are basically buying the next 25-40 years of electricity. As we know, utility rates are on the rise, which only makes this investment better and better each year. Lastly, the system is owned by you so you will get the added appraisal value to your home as well.