Episode 19: Exploring Alternative Investments – Green Backer Renewable Energy Company

Introduction:

  • Hosted by Bill Holiday
  • Brought to you by AIO Financial, a fee-only financial planning firm at AIOFinancial.com
  • Focus on providing personal financial knowledge for self-management

Why Consider Alternative Investments:

  • Alternative investments offer diversification, not directly tied to stock or bond markets
  • Typically recommended to comprise 5-10% of your portfolio
  • Generate income even in market downturns
  • Various forms of alternative investments, including commodities, preferred shares, different strategies

Green Backer Renewable Energy Company:

  • Alternative investment option with unique characteristics
  • Long-term investment in renewable energy projects
  • Typically 30-year energy contracts with cities and corporations
  • Focus on generating income through these contracts

Investment Criteria and Minimums:

  • Accredited investor criteria (net worth or income)
  • Minimum investment of $2,000
  • Longer investment duration than traditional securities
  • Tax implications with a simplified K-1

Investment Details:

  • Capital used for acquiring renewable energy power plants and other sustainable projects
  • Income generated through long-term contractual agreements
  • Monthly distributions to investors
  • Dependability of income based on agreements with creditworthy entities
  • Management team with over 100 years of experience in energy-related investments

Investment Holding:

  • Can be held at brokerage firms, such as Schwab
  • Potential fees for holding alternative investments
  • Green Backer reimburses some fees for the first two years
  • This particular fund is set to close in August 2016, with a new fund expected to open

Returns and Risks:

  • Current return is 6.3%, with an inception yield of around 11%
  • Targeted return of 15-20%, but not guaranteed
  • Risks include energy price fluctuations and tax considerations
  • State and federal taxes do not apply due to the investment type

Conclusion:

  • Alternative investments can be a part of a diversified portfolio
  • Seek advice from a financial advisor and read the prospectus
  • Not suitable for everyone, so evaluate carefully
  • Feedback and questions are encouraged

Contact Information:

  • Reach out to Bill Holiday through Facebook, email (bill@aiofinancial.com), or phone (520-325-0769)
  • Contact AIO Financial for a free financial planning meeting at AIOFinancial.com

This blog post summarizes Episode 19 of the “Fee-Only Financial Planner” podcast, where Bill Holiday discusses the alternative investment option, Green Backer Renewable Energy Company, and its potential benefits and risks. The episode is brought to you by AIO Financial, an independent fee-only financial planning firm.