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Finances & Profit
The Investment Approach
The alpaca has provided a great investment opportunity for those individuals wanting a change to a more relaxed lifestyle and still maintain a good income. Alpacas have become a way for many to separates themselves from the "corporate grind", increase their level of income and provide for themselves in their retirement years.
There are essentially two different options of alpaca investment. As an investor, each option offers benefits that have been tailored to meet different types of individual desire for involvement.
The first avenue is considered the "Active Option". This allows the investor to become actively involved in their investment and enjoy the lifestyle, tax benefits and the full financial rewards that are part of raising alpacas (the most profitable and financially secure investment available).
In this approach, the investor purchases the alpacas and begins their own business. The time and the annual maintenance cost for a small herd of alpacas are minimal and can be aligned with the desires of each individual and with the goals they have for their herd. As an active investor, this involvement requires a small parcel of fenced land with a shelter and that the investor supplies the daily care. The financial returns with this option of investing can be phenomenal and can typically yield over a 50% return.
The second avenue is the "Agistment Option". Agistment is a term used when the investor purchases alpacas
and contracts with an alpaca ranch to provide the proper management care, which alleviates the investor
of the required daily involvement. In other countries, as Australia, where livestock such as the alpacas
are sought after because of their superior financial returns, agistment is quite common. For either the
investor that does not have the environment to keep alpacas or does not have the desire to be involved in
their daily care, this option has worked out very well. Many times this option is utilized by those that
desire to be involved at the "active option" level and are interested in building investment but currently
do not have the proper environment manage the alpacas. This is a good intermediate step to make the
transition to the active level. With this level of investment the investor still enjoys the tax benefits
and the financial rewards with a minimum daily charge for full service of about $4.00 per day per alpaca.
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| (c) 2006, Alpacas of America, 1-360-264-7585
16641 Old Highway 99 SE, Tenino, WA 98589 |
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