How To Save For Retirement While Saving the Planet
Updated: May 27
Climate change has altered the way we map out our future.
Its impact on human health, ecosystems, and the global economy is very real. From the extreme heat in Siberia, to the fires across North America, and hurricane seasons . . . the ripple effect of climate change is intertwined with the way we invest. With each event comes the potential to alter the retirement life you hope to lead.
As renewable energy leaders and operators work towards innovative and alternative solutions to the climate problem, the financial industry has found a way for investors to help push the progress towards more sustainable energy faster.
How to invest for retirement in renewable energy.
As the global economy continues to move away from greenhouse-gas-emitting fossil fuels toward cleaner and greener alternatives, the demand for renewable energy will continue to grow exponentially.
In its outlook for 2021, JP Morgan Asset Management expects a “flood of green infrastructure projects in the next few years to the tune of several trillion dollars,” opening up more opportunities for investors.
There are several ways to get your foot in the door and start investing in the renewable energy sector:
Direct investment in clean energy projects;
Buying shares in green companies;
Investing in renewable exchanged-traded funds (ETFs);
Royalty financing or financing where the business gets money based on future revenue.
With so many ways to opt into the expanding renewable energy sector, choosing one can feel overwhelming, but it doesn’t have to be.
At RE Royalties, we are the first company to take the royalty financing model, well-proven in other industries, and apply it to the renewable energy sector. We facilitate the growth of companies that provide positive environmental impacts while providing shareholders with dividends.
Your investment will help fund sustainable and renewable energy projects to reduce greenhouse gases and mitigate climate change impacts.
What are the advantages of investing in green bonds for retirement planning?
If 2020 has taught us anything, it’s that predicting what will come next can be a challenge. What is certain is our growing need to develop tangible actions to combat climate change, even in the financial industry.
While not the most liquid form of investments, green bonds present an alternative way to invest in the renewable energy sector by offering a more predictable fixed-income style return.
At RE Royalties, we’ve positioned our green bonds to provide investors with a robust, dependable income using senior-secured investments made in renewable and sustainable energy projects. Our Green Bonds earn 6% interest annually, paid quarterly into your account. For example, on a $5,000 investment, you will receive $300 annually, or $75 quarterly, for the next five years after your investment. After five years, you will receive the full $5,000 back. The best part is your money was used to help forge a greener world for us all.
Moreover, RE Royalties Green Bonds are eligible for registered savings accounts such as Registered Retirement Savings Plan (RRSP), Tax-Free Savings Account (TFSA), Registered Retirement Income Fund (RRIF), and Registered Education Savings Plan (RESP).
With a diversified portfolio of renewable energy investments, we direct portions of the capital raised through green bonds to projects related to clean water, renewable energy, energy efficiency, river and habitat restoration, or mitigation of climate change impacts.
What are the advantages of investing in dividend stocks for retirement planning?
If the goal during retirement is to have a steady and reliable stream of income, then dividend stocks are a great way to climate-proof your retirement.
Dividend stocks are unique in that they pay you to own them. When companies have leftover earnings at the end of the year, they may choose to pay back a portion of that money to shareholders in the form of a dividend. As the investor, you can then take the dividends and reinvest them to buy more shares or cash out. This type of investment creates an excellent opportunity to continue growing your retirement fund.
Additionally, with life expectancy increasing, it’s becoming even more essential to plan and prepare for more retirement years. Investment in dividend stocks can help you fight off inflation while living on a dependable income by providing inflation protection not available to bonds.
At RE Royalties, we know it takes courage to be a first mover, especially when what’s at risk is the tomorrow you hope for yourself and your family. When you invest with RE Royalties, you can get in early with a growing company in a secure sector that already saw $280 billion in investment in 2017— a number that has grown exponentially since.
Since 2010, a total of $2.2 trillion has been invested in renewable energy generation capacity. Our diversified royalty portfolio continues to remain resilient and performs reliably as expected, and we look forward to making additional investments to grow this portfolio.
How can you protect future generations by investing green?
Investing in wind, solar, and renewable energy investments puts funding in the hands of companies actively working to build a more sustainable planet.
It’s important to note that the best solutions don’t always come from the biggest and well-established companies.
For example, Scotian WindFields is a community-owned developer of renewable energy projects, specifically wind and solar. With the help of RE Royalties, Scotian WindFields continued its work on 12 wind energy projects located across Nova Scotia.
Another project that wouldn’t have been possible without investment in green energy is Solar Panda, a company providing home solar systems to customers in Kenya. RE Royalties bought the existing royalty from Fresh Air for $1.87 million. The company could then take the capital we provided to Fresh Air and put it into Solar Panda, thereby allowing them to achieve a lower cost of capital compared to alternatives they were considering.
With the help of green investment, Solar Panda was able to fund its growth and change the lives of so many living without the benefit of electricity.
At RE Royalties, many of our clients are renewable energy leaders who have significant project opportunities, but are too small to secure traditional financing to fund their growth plans. Typically, our clients need $1M - $20M in funding and want to maintain ownership of their assets. Currently, our royalty portfolio includes 69 solar parks, 14 wind farms, and three hydro plants.
We vet potential clients to ensure every project we finance can help reduce emissions and fight global warming. By partnering with clients, we are able to help them realize our shared vision of creating a renewable energy future faster. As a green investor, you’ll be part of that important work. You’ll be contributing to a better tomorrow for the planet while also building your retirement.
Climate change will shape the lives we live today and in the future. When you invest with RE Royalties, you will help to create a better future for you and the planet.
Contact us today and learn more about RE Royalties Green Bonds and how your investment can support sustainable and renewable energy efforts.