Insurance - A very important point to remember when considering investment in Alpacas is that they can be insured against loss. This adds peace of mind not offered by other investments. Tax Deferred Wealth Building - As your herd grows and increases in value, you are able to postpone paying income tax until such time as you begin selling offspring. This is quite an advantage over other investments. Alpaca Compounding - Another major benefit of Alpaca ownership is based on the concept of compounding.
Alpacas reproduce almost every year and about half of their babies are female.
When you retain offspring and allow them to reproduce, this is Alpaca Compounding. This graph, produced from AOBA data, illustrates typical herd growth over a 10 year period. The assumption is that you begin with 5 pregnant females and two males. This growth of 126 animals from the original 7, is Alpaca Compounding at work. Not many investments appreciate at such a rate.