If you’re considering investing in solar panels — especially as you near retirement — you may be wondering whether it’s worth it. Should you stick to the types of investments you’re familiar with, like the stock market? Can solar panels really provide a return on your investment?
It turns out that solar panels are actually one of the safest types of investments you can make, whether you’re retiring soon or not. Learn why solar could be better than the stock market.
Why Do We Invest?
Whether it’s a 401(k), IRA, or some other type of retirement plan, many of us contribute to these types of accounts in preparation for retirement. And even when we’re years away from retirement, we may choose to invest some of our money in the stock market.
Why do we invest? For most of us, the reason is likely something like this: we want our money to go to work for us. Of course, it’s easy to park it in a savings account, but even years’ worth of savings may only accumulate a couple of dollars in interest per year.
That can lead us to look toward more speculative investments such as the stock market. Of course, with the stock market, there’s never any guarantee our money will be safe through it all. But that’s the reason why there’s the potential to get such big returns. When it comes to investing in a volatile market, we’re generally told that with no risk, there’s no reward.
Look back on the investments you’ve made over the years. Especially if you started investing many years ago. Your money may have grown substantially since you made your first investment. Maybe a startup made it big, or maybe your employer’s stock price has skyrocketed since you made your initial purchase.
Changing Financial Goals in Retirement
As you move toward retirement, it makes sense that your financial goals begin to change. You become less concerned about getting big returns and more concerned about having a steady source of income you can depend on when you’re no longer working.
Stock market wisdom tells us that “time in the market beats timing the market.” This essentially means that putting your money in stocks and parking it there for a longer period of time will yield better returns than a day trading strategy, or trying to capitalize off quick price variations.
But when you’re inching toward retirement, you likely don’t have the same benefit of time that you had before. And you may not have the risk tolerance to continue investing in the stock market.
Of course, you want your investments to last you as long as possible. And we at KC Solar want to challenge you to look at investing in a variety of ways — it doesn’t only mean the stock market.
Making an Investment in Solar
We challenge you to look at solar panels as an investment. Hear us out. When you make the decision to go solar, you’re absolutely making an investment. Consider this definition of “investment” by Investopedia:
“An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in value at some point in the future.”
Going solar does not necessarily guarantee you immediate financial benefits, but the goal is that you’ll see them in the future through reduced (or obsolete) energy bills and increased home value. And you will! But an immediate payoff isn’t what investing is about, anyway. It’s about looking toward the future to see those benefits come full circle.
Not only do solar panels meet the definition of an investment, but they’re also one of the safest investments you can possibly make. And this is especially true the closer you get to retirement and your investment risk tolerance decreases.
Solar panels can never lose you money — they can only continue producing you energy. This will save you money throughout the length of your retired life. It doesn’t matter whether there’s another recession or global pandemic. No matter what the markets are doing, your solar panels will be unaffected.
Other Benefits of Investing in Solar Panels
When you make an investment in the stock market, you’re putting your hard-earned money in the hands of some company and hoping that they make good decisions with it. If they do, your money grows; if they don’t, your money diminishes. And, of course, there are external market factors that can lead to your money shrinking as well.
With solar panels, not only do you become energy-independent, but you’re also investment-independent. There’s no turning your money over to someone else and hoping it grows. Solar panels provide you a guaranteed return on investment, and you’re in full control of that investment, as well.
Plus, those solar panels can do a lot more than a stock investment can. Solar panels can increase your home’s value, earning you more money in the future. Solar power can contribute to a more sustainable lifestyle and positively impact your community. Solar panels can protect you from paying exorbitant electricity bills when the regional power grid fails, like it did in February 2021.
And, for many people, they just like the ability to see where their money is going. It’s not going to a faceless CEO of some far-off company. The solar panels are right where you can touch them, see them, and take care of them.
You Have Questions, KC Solar Has Answers
At KC Solar, our job is to help you decide whether a home solar system is right for you. Our team of experts will be there from beginning to end to help you through the process.
We’re happy to chat about any questions or concerns you have about going solar. Reach out to us today and we’ll be in touch!