Renewable Energy in 401(k)

Would you like your company to add Renewable Energy Mutual Funds to your 401(K)?

I would. My 401K is probably so depleted by now that renewable energy funds might just be the thing to enable me to retire to Aruba. Just make sure that Madoff-type investors will be hands-off on this one.

The South Denver Chamber of Commerce is proposing to President-elect Obama to include in the upcoming economic stimulus package a federal tax credit ranging from $40 to $400 per employee to businesses that add a renewable energy fund to their employee 401(k) plans. The plan is for small businesses to receive higher per employee tax credit while corporations will receive a smaller amount per employee but a larger overall tax credit.

They said the proposal will generate $30 to $100 billion renewable energy investment and more than 500,000 clean energy jobs.

“Following the initial technology investment, such as putting up a wind farm or a concentrating solar plant, renewable energy has zero fuel costs. That’s an attractive business model. Renewable energy assets are a solid investment in a sector that is well positioned to experience rapid growth,” says John Brackney, President South Metro Denver Chamber of Commerce.

The South Denver Chamber of Commerce will hold a press conference about the proposal on Wednesday, January 14 at 11:30a.

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3 Responses to Renewable Energy in 401(k)

  1. Pradeep 15 January, 2009 at 3:53 am #

    Doris,
    I think that adding renewable energy mutual funds to one’s 401(K) portfolio is a good long-term play. However, I do not get the direct connection between investing in renewable energy mutual funds and creating additional clean energy jobs.

  2. Doris 15 January, 2009 at 6:24 pm #

    I guess more funds means more potential projects, and more projects means more people could be involved to run them.

  3. Sujata Virdhe 30 January, 2009 at 4:40 am #

    Its good initiative by new president of USA adding renewable energy mutual funds to one’s 401(K) portfolio. I am the solar photovoltaic expert and wish the same initiative is taken by Indian Govt.

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