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September 3, 2013

Save $7,500 on Energy and Taxes Every Year (Equaling 7.5% ROI on $100,000 Investment).

by Natalie Pace.

The average American can save more than $7,500 every year with the below six changes, which equates to a 7.5% annualized return on investment on $100,000. Most of us donít realize just how much we are paying to the taxman and the bill collector, and that a lot of that dough can be kept, instead of making everyone else rich. For those of you worried about your nest egg, the Bond Exodus, the Wall Street Rollercoaster, the Debt Ceiling, et al., investing in some of these safe, hard assets could pay for themselves in just a few short years, and offer returns for decades (if not for the rest of your life). That equates to the best ROI available in the world today Ė without any shift in lifestyle, and a style upgrade to boot.

  1. Residential Solar Panels.
  2. Health Savings Account (if youíre healthy and paying an arm and a leg in insurance).
  3. Electric Vehicles.
  4. Energy Efficiency Upgrades.
  5. Individual Retirement Accounts.
  6. Unplug and Turn it Off!

And here the detailsÖ

  1. Residential Solar Panels. Going solar equates to $1300/year savings in utility bills for the average American (with a utility bill averaging $108/month). If yours is higher, the savings will be even more. Plus, in most states, the power company pays you if you generate more than you use. Thatís equivalent to a 6.5% ROI on $20,000 investment Ė with very low risk. The payback on solar panels is down to 4-7 years in sunny states, according to Bloomberg New Energy Finance CEO Michael Liebreich, meaning youíll keep generating returns for life Ė long after youíve made back your investment. Others will be complaining or in trouble, as energy prices rise.

  2. Health Savings Account (if youíre healthy and paying an arm and a leg in insurance). Save $3,250 in your HSA every year, instead of making the health insurance company rich. If you need the money to cover a high deductible and coinsurance for a medical emergency, itís there. If you donít, the HSA acts like a retirement plan that can be invested and compounded for additional gains. The HSA offers a tax credit, too, creating a win-win-win scenario.

  3. Electric Vehicles. Going electric equates to savings of $1,951-$2,912 every year in gasoline. The average American spends $2,912 per year on gas, which could be reduced by 2/3rds or even altogether with an EV. Many cities and companies offer free charging stations. If you charge with your own solar panels, thatís free, too. Plus EVs and hybrids have been holding their value better than gas-guzzlers. And you could qualify for a tax credit of up to $7,500 if you buy a new, qualifying EV.

  4. Energy Efficiency Upgrades. Save up to $1170 every year (90% of your heating), by insulating your home. Energy efficiency upgrades can also qualify for a tax credit of up to $500 on the materials and labor. Check out a super-insulated, upstate New York home that only turned on the heat twice in the winter of 2012, at the blue-highlighted link above and on my HuffingtonPost blog.

  5. Individual Retirement Accounts. Wonder how Mitt Romney pays 15% taxes? Because wealthy people know three very important facts. Capital gains in your IRAs arenít taxed. You can potentially receive a tax credit for contributing to your IRA. If you deposit 10% of your income and that earns 10% annualized gains, youíll have more money than you earn within 7 years and within 25 years, your money makes more than you do. Think 10% gains are impossible? Thatís what stocks and bonds have done over a 30-year period. In fact, the NASDAQ Composite Index has posted 31% annualized gains over the last four years Ė three times what is necessary to achieve that magic formula!

    FYI: Capital gains are taxed at 15% (much lower than earned income) for most people, when the assets are not in a tax-protected account.

  6. Unplug and Turn it Off! If you want to cut 90% off of your utility bill, stop heating (or cooling) water and rooms when youíre at work. Install a timer on your water heater and a thermostat that shuts the heating/cooling system down during the 8+ hours you are out of the house. Turn off lights and unplug computers, cell phones and home entertainment systems when not in use. Wash clothes and dishes during off-peak hours. These simple, smart choices could amount to savings of over $1000 annually. Timers, power strips and thermostat settings put all this on autopilot!

For more creative, life-transforming ways on how to adopt a Thrive Budget and make a great return on investment on these safe, hard, energy saving assets -- instead of making the utility company, the insurance company and the taxman rich -- be sure to read the Thrive Budget and Hard Assets sections of my book, The ABCs of Money.


About Natalie Pace:
Natalie Pace is the author of the Amazon bestsellers, The ABCs of Money and You Vs. Wall Street. Natalie has been adding a splash of green to Wall Street and transforming lives on Main Street for 14 years, while at the same time earning the ranking of No. 1 stock picker. Natalie Pace is a blogger on and a repeat guest on national television and radio shows such as Good Morning America, Fox News, CNBC, ABC-TV,, NPR and more. As a strong believer in giving back, she has been instrumental in raising tens of millions for public schools, financial literacy, the arts and underserved women and girls worldwide. Follow her on and For more information please visit

Please note: does not act or operate like a broker. We report on financial news, and are one of the most trusted independently owned and operated financial news corporations in North America. This article is intended to educate and inform individual investors, and, thus, to give investors a competitive edge in their personal decision-making. Any publicly traded companies or funds mentioned in this article are not intended to be buy or sell recommendations.

ALWAYS do your research and consult an experienced, reputable financial professional before buying or selling any security, and consider your long-term goals and strategies. Investors should NOT be all in on any asset class or individual stocks. Your retirement plan should reflect a diversified strategy, which has been designed with the assistance of a financial professional who is familiar with your goals, risk tolerance, tax needs and more. The "trading" portion of your portfolio should be a very small part of your investment strategy, and the amount of money you invest into individual companies should never be greater than your experience, wisdom, knowledge and patience.  

Information has been obtained from sources believed to be reliable however does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors. -- a global financial news, education and literacy network


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