At the most basic level, investing is about making your money work for you. So why do so many of us settle for investment opportunities that don’t actually get us closer to our goals?
Maybe you’ve invested heavily in mutual funds, or maybe you’ve contributed significant amounts of money to a qualified funds like a 401(k) or IRA. These strategies may have worked for your parents, your neighbor, or your boss, but that doesn’t mean they’re the most efficient vehicle for reaching your unique goals.
And if you’re an Accredited Investor, there are so many more opportunities available to you. Why limit yourself?
If you’re hoping to invest your income in a way that allows you to work less hours, travel more, or retire sooner, then you should look for opportunities that are tax efficient, completely passive, and fit within your level of risk tolerance.
Earn More While Paying Less Tax
If you’re not investing your W-2 income in a way that keeps you from having to give back 35% or more in income taxes each year, then your money is not working hard enough! It’s time to get smart about the way you invest, so that you aren’t only generating returns, but also paying less income tax in the process.
At First Generation Capital Partners, we’ve identified carbon capture technology as a powerful vehicle for generating consistent income while also gaining significant income tax advantages.
When you invest alongside us to purchase this innovative technology, the current U.S. Tax Code allows you to deduct 100% of your investment for the first year against your earned income. And with leverage, your depreciation will be calculated as much as 200% of the investment amount.
This specific investment vehicle is the only one that provides this benefit, so the opportunity for Accredited Investors is enormous. Other passive investment opportunities like real estate may be eligible for certain tax deductions, but those deductions generally only apply to the income you generate through that investment, not to your W-2 income.
To learn more about the tax benefits and see some specific examples of just how much money you can save by investing in carbon capture technology, download our free guide:
“Passive Income” Does Not Always Mean Investing Passively
Many investment opportunities are advertised as “passive income generating,” but that doesn’t always mean those opportunities don’t require work from you. The IRS has a specific definition of passive income for tax purposes that’s much broader than what you might think.
For example, rental income from real estate is taxed as passive income, but directly managing a small, single-family rental property will require you to spend time on management, marketing to prospective tenants, and more.
Similarly, certain investments in private companies are taxed as passive income, even if you spend time working on or for that business (less than 500 hours per year).
This doesn’t mean that real estate and investing in private companies are not valuable opportunities for some people, depending on the stage of life you’re in. But it does mean that you should think carefully about your goals before investing in them.
If you’re trying to generate more income so you can leave your job or cut back on hours, then you should keep an especially close eye out for opportunities that are advertised as passive income, but will still require you to work more.
When you invest in carbon capture technology, your investment is 100% passive. After making your initial investment, your funds will be used to purchase and operate equipment that is managed by a team of experts. There’s no time commitment on your part; all you have to do is wait to start seeing returns deposited in your bank account.
Seek Out Consistent, Predictable Income
One of the key benefits of investing in alternative assets is that they are often less closely correlated with the stock and real estate markets. CO2, in particular, is consistently in high demand in a wide variety of industries. This compound is used in everything from cosmetics to carbonated beverages to power plants to plastic. So even in an economic downturn, we can expect that demand for CO2 will continue.
Additionally, working with seasoned operators allows us to mitigate operational risk and give us confidence in this particular vehicle.
If you’re interested in learning more about the benefits of investing in carbon capture technology, and the specific ways our team at FGCP can help you achieve your goals, fill out this brief form to get in touch.