The resolutions we make for the new year generally are related to losing weight, quitting a bad habit or even going to church more. In these times of economic volatility, securing your finances should at least get honorable mention as a 2013 endeavor. Young families tend to dismiss investing as something for middle-age people or out of their financial reach. The following are some great investment ideas which don’t require you to know anything about the Dow Jones Industrial Average or the S&P 500 Index.
It’s common knowledge that if you own a comic book which only 500 copies exist in the entire world, it is going to be worth quite a bit of money due to its rarity. Contrarily, something that is abundant and easily accessible has little to no value. This concept can be applied when assessing the value of the U.S. dollar. The Federal Reserve continues to print billions of dollars which it says helps stimulate the economy. But the more dollars that are circulating, the less they are worth, which subsequently raises the price of everything (inflation).
The wild, unabated printing by the Fed over the past decade has caused commodity prices, such as food, to soar. But non-consumables, such as precious metals, have likewise spiked. The value of gold has multiplied six-fold in the past decade, while silver exploded 12-fold. And the great thing about gold and silver is that coins and bars can easily be purchased through online dealers such as US Money Reserve. Many economists predict that the price of gold and silver will continue on the upward path. The time to buy is now before prices reach a level too steep for most Americans to afford.
The average American household spent about $1,420 on electric bills in 2010, according to USA Today. A small, grid-connected solar system could easily slash this expense by 40 percent or more. A solar water heater alone could cut your energy bills by 15 percent. There are several prevailing misconceptions about solar energy. One is that solar panels are only useful in states with year-round sunshine and mild temperatures. Solar energy is produced by the sun’s light, not the sun’s heat, thus can work in any weather conditions (just brush the snow off of them). The other most common fallacy is what solar is very expensive. Five years ago, this may have been the case. But federal and state tax breaks, along with more companies making the panels, have dropped the price significantly. Most solar systems come with 20-25 warranties, making them an intelligent investment that will save you money.
There are several new taxes slated to take effect in 2013. An increase in capital gains tax, such as income earned on interest and dividends, will discourage many investors from buying stocks. Buying municipal bonds will not only help your local community, but are generally exempt from federal taxes. You are basically investing in the community you reside, and placing your money in a relatively stable place. The yields on “munis” tend to be fairly low, but they are still a far better and potentially more lucrative option than a typical savings account at a bank.
Looking for help with your investments in 2013?
Give Jay a call at 866-594-9919