EFFICIENT

TO GO GREEN OR NOT TO GO GREEN: IS THAT THE QUESTION?

WRITER: ELLEN B. WILCOX, GEPC

Ioffer my humble apologies to The Bard of Avon for paraphrasing his well-known words, but “to go green or not to go green” is a question being asked by many these days. It is not just the serious environmentalists, tree-huggers, or Sierra Club enthusiasts, but also our own friends and neighbors who are talking about and in some cases, already in the process of “going green.” If you are considering greening up, please read on. With multiple ways to “go green,” I researched the cost, the anticipated savings, and the payback time frame for some of the more popular residential and vehicle changes. Here is a bit of what I learned.

A Good Beginning — The Energy Audit: Before opting for any greening of the home, it may be wise to do an energy audit. Generally, this necessitates hiring an expert to review all energy consumed in the home. Some power companies offer this as a free service to encourage a reduction in peak-time energy consumption by its constituents. A good energy audit will give the homeowner detailed information as to the amount of energy used by each appliance, water heater, HVAC system, and sprinkler system. Audit cost, if any, will generally be under $300. Included in the audit will be suggestions for energy reduction and cost savings. If, and when, the suggested energy reductions are practiced, the audit cost is often recovered in less than one year.

One Inexpensive D.I.Y., and Very Cost-effective Change: Switch to compact fluorescent light bulbs (CFLB) may be the single, doit-yourself, quickest, easiest, and most cost-effective energy saving item we can all embrace… and it can be phased in over a relatively short time period, which also makes it easier on today’s tight budgets. Each time an incandescent bulb flickers and dies, just replace it with a CFLB in a comparable wattage. Estimated cost to replace all bulbs in an average household is under $150. Energy savings should be around $200 a year, so cost recovery time is less than one year. (Author’s cautionary note: Be sure to check your lamps and shades before buying the squiggly new bulbs. I have at least three lamps/ shades in my home that will accommodate only a traditionally shaped incandescent bulb!)

Small Changes Can Add Up: Simple changes such as turning off lights in an unoccupied room and lowering the thermostat in winter (or raising it in summer) by one or two degrees can have a significant effect on overall energy consumed. Utility bills will quickly show the savings. A low-flow toilet costs about $300 and can save about $90 a year on the water bill. Caulking cracks ($5-$250), sealing ducts (about $1,300 if done professionally), adding insulation (plan on $2,000$5,000), and adding or replacing drafty windows (around $3,000$12,000) are changes that will prevent exterior climate changes from affecting energy usage and will lower energy cost. Each of these changes can produce savings ranging from $250-$900 per year. Cost recovery time will vary from five to 15 years.

A Bigger Item — Solar Power: At the top of the list for going green is converting to solar power. Life in Florida means lots of air conditioning for five to eight months of each year, so using solar energy would seem to be a good way to go green and save some green in the wallet, as well. The average cost of installing solar power on a modest size three-bedroom, two-bath home is $24,000, and more if the cost is financed or added to the mortgage on a new home. The homeowner can anticipate savings of about $200 per month on the utility bill, which means the initial cash outlay is recoverable in about 10 years, but…

Hidden Costs: My favorite Realtor told me that the average homeowner moves about every seven years, so my math says that the next homeowner may reap much of the savings, not the homeowner paying for the costly installation. Oh yes, there is a bit more, too. One homeowner I talked to learned that his local power company would charge him an annual fee of $240 “to stay connected to the local power grid” despite his total dependence on his newly installed solar panels. On top of that, another hidden cost crept in when his homeowner’s insurance provider upped the value of his home a whopping $60,000 due to the solar panels’ potential replacement co His insurance increased more than $300 per year. Another hidden cost is the care and maintenance of the solar panels. At the very leas routine cleansing is a necessity, and in a cold climate, antifreeze may also be needed regularly. Consider, too, the cost of repairing, or even replacing, the roof beneath the solar panels every ten to fifteen year To repair the roof will necessitate removal and re-installation of the panels, which could be quite expensive. One last thought: Solar panels have been around a long time but are still evolving, so ther is not a lot of a “track record” to precede an informed decision. Bottom line: Be sure to consider all costs before signing the contrac to install solar power. Remember that the sales representative is pa to sell the product!

The opinions voiced in this material are for general information only and are not intended to provide specifi c advice or recomm endations for any individual. Ellen B Wilcox is a Graduate Estate Planning Consultant and a Registered Principal with, and offers securities through, LPL Financial, Member FINRA/SIPC. Ms Wilcox is President and CEO of Wilcox Wealth Management, in La dy Lake, FL, which is not affi liated with LPL. She may be reached at Ellen@EllenWilcox.com or www.ellenwilcox.com .

The BIG DADDY — The “Green” Auto: With volatile gasoline prices, and as I write this now in the vicinity of $4 a gallon, it is likely that some of you reading this article right now have already chosen to own a non-traditional vehicle. There is no doubt that the initial co of a hybrid vehicle is substantial. Current prices range from $19,000 to nearly $60,000. These prices are $1,700 to $11,000 higher than the cost of a comparable gasoline-only automobile. Manufacturers’ claim show “lifespans” of around eight years or as much as 180,000 miles battery life. Most manufacturers warrant 150,000 miles. Replacemen batteries are expensive and often hard to find except through the original dealer, and finding a recharging station when traveling can sometimes be challenging, too. Hybrid vehicles require ordinary maintenance of the gasoline engine, as well, so factor in the routine change, etc. As with solar panels, there isn’t a lot of a “track record” on which to base an informed decision about long-term care and maintenance costs.

The Good News — Tax Benefits and maybe more: The U.S. Federal Government offers a tax credit — that is a dollar-for-dollar reduction in your tax bill — to those purchasing a green auto. The n maximum tax credit is currently $3,000. Some states offer cash rebates, as well. Some insurance companies also offer lowered premiums because their statistics indicate that the owners of nontraditional vehicles tend to be safer drivers. Using tax credits, cash rebates, and possibly lowered insurance premiums could add up to substantial savings in addition to the obvious savings on everescalating gas prices. If you’re leaning toward a hybrid for your next vehicle, be sure to factor in the area of the country where you live, your state’s policy on cash rebates, your own insurer’s policies, and, of course, your personal driving needs, habits, and history.

Financial Advice — Weigh Your Options: How do I advise my : own clients on going green? Obviously, there is no one answer for everyone. With more than 30 years as a financial adviser, I know that individual circumstances, available assets, specific needs, and personal preferences must all be considered. Many years ago, my business was located in Silicon Valley, Calif., where there is a high level of net worth, a well-educated population, and a strong concern

SOURCE: http:// www.goinggreentoday.com/blog/10-greenfacts-that-will-make-your-head-spin/ for environmental issues. A recent visit to that area showed me that “green” items are flying off the shelves of supermarkets, especially home-cleaning products and food products using biodegradable packaging. However, I also noticed that the parking lots of those same supermarkets were still filled with the requisite full-size BMWs. There is no doubt that going green is likely to become a more prominent n part of our lives, either by choice or by mandate. Research carefully, make informed decisions, and be aware that “old habits die hard!”