All information is provided for informational purposes only and considered “as is,” — not intended for trading purposes or advice — lexstarenergy.com or any representatives are not liable for any informational errors,incompleteness, or delays, or information contained herein. To obtain further information, you must complete our questionnaire and meet the suitability standards required by law. The interest may be sold only to accredited investors, which for natural persons, are investors who meet certain minimum annual income or net worth thresholds. The securities are being offered in reliance on an exemption from the registration requirements of the Securities Act and are not required to comply with specific disclosure requirements that apply to registration under the Securities Act. The Commission has not passed upon the merits of or given its approval to the interest, the terms of the offering, or the accuracy or completeness of any offering materials. The interest are subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell their interest. Investing in oil and gas involves risk, and investors should be able to bear the loss of their investment.
Oil is big business once again in Texas. Investors are taking notice. Image: Flickr
Investing in Oil and Gas Utilizing a Self Directed IRA or 401K
You probably already have plans in place for your retirement.
But in today’s economic landscape it’s important to know the options for diversification.
The more you can spread out your sources of income the better protected you’ll be if something happens to one of your accounts or revenues streams.
An option currently being utilized by savvy investors is a Self Directed IRA. Many of these investors are using this investment tool to take advantage of one of the hottest industries in the United States: Oil.
The State of Oil In the US
The US is currently experiencing an oil renaissance.
For decades, industry experts knew there was oil buried under the ground throughout the country. The trouble was that these deposits were located in shale formations making it impossible to actually bring the oil to the surface.
Advancements in technology now make it possible for oil companies to drill into shale formations. Efficiencies are being added as the technology and experience improve.
As a result, the US is expected to become the world’s leading source of oil within the next ten years. This is a great achievement for the US economy.
Energy demand is growing throughout the world. Emerging nations such as China and India have an increasing demand for oil and the US has plenty to supply itself and other countries around the world.
It’s a bright future for oil and gas in the US.
Self-Directed IRA Basics
The traditional retirement path involves giving your money to a fund manager and letting them handle all the investment decisions.
While this investment method is good for some it can be limiting for others.
For example, it’s quite possible that you have extensive knowledge of certain industries. Whether through your profession or other interests you likely know the ins and outs of certain industries such as real estate, banks, private companies and other business areas.
With a traditional IRA it’s not possible to invest in these areas or it is limited to what your investment advisor or fund manage does.
Self directed IRAs provide you with the choice of how to make your investments while still benefiting from the tax-free and tax-deferred value of the IRA retirement option.
Investing in Oil and Gas with a Self Directed IRA
You have an opportunity to align your retirement with the projected success of the oil and gas industry.
With a self directed IRA you can invest in the oil and gas industry in a variety of different ways including:
- Commodities
- Refiners
- Drilling companies
- Land where the drilling occurs
- Other assets and associated industries
Your self directed IRA investment in the oil and gas industry operates as a shareholder in whatever area you choose.
If you choose to be a shareholder in an oil drilling company you would purchase shares with your IRA. The IRA would be the entity paying expenses and benefiting from the revenue and profits.
This is just an introduction to how you can invest in the oil and gas industry for retirement.
There are more details including options for Traditional and Roth IRAs along with 401k options.
If you have more questions about investing in oil please continue reading the site or contact us today to learn more.
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