Investing in a 401k is Dumb, Investing in 4.01kW of Solar is Smart

Back in the 90's when I first entered into the professional world I was strongly urged by investment “experts” to invest as much of my salary into a 401k retirement plan as possible, as I should be able to reasonably expect a 5-20% return on my investment. Fifteen years later I still have not seen these hyped up returns on my investment. And, all this time later, with my 401k now rolled over to a SEP IRA, my effective interest rate is less than 1%. I suppose I should consider myself fortunate in having what I put into it, considering how so many folks now at the retirement age lost money in the 401k and SEP IRA/stock market over-hype. Perhaps if I was interested in monitoring stocks, mutual funds and foreign currencies I'd been able to play the “game” better and could have generated a better return. But that interests me about as much as playing backgammon. I don't want to worry about having to play the stock market “game.…8221; After all, isn't that why the retirement fund managers get their annual fees and million dollar bonuses?

I just want to invest a part of my salary periodically and feel that when the day comes, I can retire and live a simple life comfortably. I, frankly, no longer believe my private retirement plan is going to be anymore than a poor investment that will be able to carry me financially for more than just a few years at best. Enter solar…8230;Now, let's compare this to investing in a solar energy system instead. With the various renewable energy state rebates and federal taxes incentives in the US, you can reasonably expect to get an effective ROI of 8 to 14% for the next two to three decades, if not more. And, unlike the stock market retirement fund racket, this is a sure investment.

How? Well, the common grid-tie solar panel (solar electric) system pays for itself after rebates in 6 to 12 years and then it just continues to pay down your electric bill for the decades to come. Most solar panels can be expected to continue producing power beyond 25 years. After all, most solar panel manufacturers warranty their power output to 80% for up to 25 years. And, if solar panels in 1970's serve as a predictor of the reliability of ones produced today, you should be able to expect at least another one to two decades of serious power production out of them.

So, if your plans are to live in the home you have for the next few decades, it seems far smarter to invest first in a sure thing for your retirement (your need for electricity and the bills that would otherwise come with it) than the casino game that is the stock market. The only downside is you can't keep investing more in a solar electric system and get more out of it – once you've bought one that meets your needs, that's it. Investment nugget secured. Fortunately, there's something even smarter than a solar electric system for your retirement, but that's for next time…8230;