Energy Efficient Business: Energy Investments Essay

887 words - 4 pages

Most investors find sector-specific investments risky. However, with the surge in oil prices, it is advisable to explore energy investments to balance your self-directed IRA. Renewable energy sector has immense potential to develop. Recent government policies to boost renewable energy provide lucrative investment options in the sector.

Energy investments were practically unknown to the investor looking to protect his retirement portfolio, until recently. Even the passive investor is waking up to the volatile consequences of a series of disappointing economic events over the past few years. Investors need to have a complete understanding of the benefits of investing in energy assets through their self-directed IRAs.

Though a self-directed IRA provides you the freedom to select, invest and manage your portfolio, choosing a combination of direct and indirect energy investments makes your IRA portfolio powerful and balanced. Such a portfolio benefits from reduced taxes and asset protection. For example, you can avail tax benefits provided by the government, if you invest in renewable energy through your self-directed IRA.

Energy investments include investing in oil, natural gas, coal and renewable energy sources like solar energy, wind, or biomass etc. Investing in energy can take both the indirect and direct route. Energy investments through stocks and mutual funds form the indirect route whereas investments through limited partnerships or lease agreements take the direct route.

How to invest in energy?

In the current economic environment where oil prices reach higher levels everyday, investment options vary from picking the right oil stocks to investing in long-term master limited partnerships. Energy stocks that benefit directly from oil price rise are far and few in between. Oil companies that benefit from increase in oil prices are those that involve in oil transport and large and supporting players which can weather sudden drops in crude prices. If you are not one of those prudent stock pickers, ETFs and mutual funds are the next best options. They are long-term investments and provide diversified exposure to energy.

However, if you want to invest in profitable companies that are not affected by volatile oil prices, you can invest in master limited partnerships (MLP) with energy pipeline operators. They generate revenues through the volume of petroleum products transported through their pipelines. Thus, independent of oil price rise, they provide stable profits. MLPs are traded publicly on the SEC (Securities Exchange Commissions). They provide dividend income and act as an inflation hedge mechanism.

How do energy investments protect your portfolio?

The key attributes of the benefits of adding energy investments to your self-directed IRA include strong returns, risk diversification and inflation protection.

Strong returns: Due to the unprecedented rise in oil prices in the past few years, private energy annualized...

Find Another Essay On Energy Efficient Business: Energy Investments

American Universities becoming Energy Efficient Essay

1507 words - 6 pages amenities like air conditioning, high-speed Internet connections, and voice mail.The Good News?Many universities are realizing they can reduce operating costs and improve the campus environment by making energy-efficient building improvements. The greatest potential for energy savings comes from improvements in building controls. Some buildings burn the midnight oil, but most don't. Central monitoring controls can regulate off-hour lighting, heating

Energy Efficient Mobile Ad Hoc Network (MANET)

2553 words - 10 pages clear that the Genetic Algorithm works equally better for nodes without mobility Fig.6. Graph showing No. of nodes Vs Delay without mobile node Fig.7. Graph showing No. of nodes Vs Cost without mobile nodes Fig.8. Graph showing Generation Vs Delay without mobile nodes Fig.9. Graph showing Generation Vs Cost without mobile nodes 5. CONCLUSION An energy-efficient Genetic Algorithm

Buffers of an Energy-Efficient Uzbekistan

740 words - 3 pages While there are several reasons why America should aid Uzbekistan in becoming an energy efficient country, there are also equivalent reasons why America should avoid supporting this Uzbek transition. One of the reasons that the EPA is hesitating in sending American money as a loan to Uzbekistan is due to the fact that Uzbekistan is being asked to reunite under Putin’s recreation of the Soviet Union in attempt to revive communism. America for

Case Study: Application of Real Options to Energy Investments

2180 words - 9 pages Introduction Energy investments have been evaluated using diverse methods. Santos et. al. (2014) argue that conventional approaches such as Net Present Value (NPV) or Internal Rate of Return (IRR) do not consider relevant project characteristics like irreversibility, uncertainty and management flexibility. They propose that the Real Options Approach (ROA) has an advantage over conventional methods. The aim of this essay is to apply real options

The Awareness of Residents of Islamabad about Energy-Efficient Buildings

1504 words - 7 pages This paper is aimed to find out the awareness level among the residents of Islamabad about energy-efficient buildings. Also, how other important variables such as income level, age, education background, status, price of such buildings, etc affect this awareness level. Awareness is defined as the level of alertness. For this purpose, different countries have been studied. A brief overview of the similar studies is given below. A study conducted

Energy-Efficient Routing Protocols for Wireless Sensor Network

1850 words - 8 pages Introduction: In the third semester I have completed the course work of Research Methodology and Computational Techniques with ‘A+’ Grade. In the previous semester I had proposed the following to be carried out. Implementation of LEACH protocol Simulation of proposed approach More exploration of energy efficient routing protocols. The above mentioned objectives have been achieved in this semester except the simulation is proposed

An Approach of Energy Efficient and Secure Data Transfer Using Multicast Routing Protocol in Ad Hoc Networks

585 words - 3 pages itself. Hence, in core based multicast tree, shortest path from the source node to the destination node cannot be guaranteed, but only one tree would be needed to connect the set of the source nodes to a set of the receiver nodes. And many MANET has limited energy resources (battery), and each node operates in unattended manner. So energy efficient is an import design consideration for these networks. So we proposed energy efficient paper using

An approach of Energy Efficient and secure data transfer using multicast routing protocol in Ad Hoc Networks

946 words - 4 pages place to another place and it forms the own topology themself. And each nodes are powered by batteries with a limited energy, wherein each node stops functioning when batteries get sanitations. For energy efficient and maximize lifetime of nodes we introduce techniques aimed to minimize power consumption of all nodes by using multicast routing protocol. Multicast routing protocol is independent of unicast routing protocol. Multicast source node

Energy Drink Is A Promising Business Niche

857 words - 4 pages behind this business was to offer vital energy complements to today’s lively existing persons, with expectations of pouring today’s great energy marketplace. The future of niches for energy drinks is very progressive. Energy drink market is currently segmenting into a series of niches. Energy drinks opening consists of new niches which are selling with purposeful and nourishing foods on a niche base include:  The message affiliated with naturally

Strategic business recommendations for balanced international development of state owned oil and gas or power and energy companies

1383 words - 6 pages Strategic business recommendations for balanced international development of state owned oil and gas or power and energy companies. From business perspective “Let’s go global!” or “Now it is a time for international development” might be announced by many companies. Such statements in strategic declarations are often used without real understanding of its meaning. Often it is easier to say than done and first hurray optimism and quick decisions

Renewable Energy Systems

1521 words - 6 pages their business viability, across time, context, and varying degrees of industrial maturity, has become vital for sound policymaking and investment decisions. Policymakers need to meld efficient policies for an uncertain future with changing technologies; investors need to decipher where opportunities lay among the array of available energy sources and regions; scholars need tools to provide important insights as to the social and environmental

Similar Essays

Energy Efficient Homes Essay

3964 words - 16 pages our environment. Practicing energy-efficiency at home is certainly an economic solution to our environmental problems, contrary to popular belief that it will cost more to implement. Opponents of the transition to an energy-efficient lifestyle claim that it will cost more and will stifle business. However, energy-efficiency will create new jobs in technology research and development. When developing energy-efficient electric motors to be

Our Energy Efficient House Essay

1059 words - 5 pages priced appliances. “Whether it’s scented candles, household cleaning products or paint, many products commonly found under sinks and in cabinets contain chemicals that can be harmful to your health and the environment.” (Fox Business). Almost anything can be made to be energy, and cost efficient. I learned from this project that you can always make anything cost and energy efficient. I also learned some equations that I never would of probably used

Efficient Home Energy Management Essay

964 words - 4 pages EFFICIENCY Summary of the energy performance related features The table sets out the result of the NILM based survey which lists the present energy related features of the home. Each element is analyzed by the national calculation methodology ; 1 star=Very poor (Least Efficient),2 stars =Poor ,3 stars=Average ,4 stars =Good ,5 stars=Very Good(Most Efficient) ELEMENT DESCRIPTION AVERAGE POWER KW AVERAGE RUNTIME Hrs ENERGY EFFICIENCY

Energy Efficient Effulgence Essay

1544 words - 6 pages The concept of a light bulb dates back to the early 19th century, but it has evolved into more advanced machine than the first simple one. Today companies are trying to produce bulbs that are more effective and last longer. The three most common types of bulbs in used today are LED, CFL, and incandescent. (Hamm, 2010) LEDs or light emitting diodes recombine electrons with holes in the bulb. This releases energy in the form of photons. Photons