Oil Investments for Retirement

I feel most people looking for investments are trying to create income for retirement or maintain their retirement funds. There are many types of investments you can put your funds toward to create income. The common types of investments are stocks, bonds, mutual funds, and CDs; but there are many alternative types as well. One type of alternative investment is in oil. 

You may be thinking, oil? What exactly does it mean to invest in oil? What type of oil investments can I do? Well, I can help you find these answers. There are a few different types of oil investments you can do outside of simply investing in oil stocks. There is exploration & drilling, services, and technology. 

  • Investing in exploration and drilling is when you invest in a company that buys or leases land near areas with proven reserves and then drilling there hoping to find oil. When oil is found it is extracted and sold to refineries. You will only see a return on your investment if oil is found.
  • Oil services are an essential part of oil exploration. They are the companies that provide direct support to the exploration and production (E&P) of oil. Most E & P companies do not own their own drilling equipment so they would hire a services company to do the extraction and maintain the well.

The last type of oil investment I will discuss is in oil technology. So, what are oil technology investments? Oil technology investments would include the remediation and clean up of oil. 

  • Oil spills are a huge problem in the oil and gas industry because they cause catastrophic environmental damage as well as the loss of crude oil. New technology is being used to clean up these spills such as the use of a bacteria that can “eat” the oil to clean it up. However, this method doesn’t recover the oil, it destroys it.
  • Another technology is able to recover oil from tar sands through a remediation process that extracts the oil from the sand, creating both usable crude oil and clean sand. The company doing this is VIvakor.
  • The advantages to investing in a company such as Vivakor is that they are a qualified opportunity zone so you will have all the opportunity zone tax benefits such as deferring capital gains, a potential tax reduction of those gains, and if held for over 10 years you don’t have to pay gains on any growth of the initial capital. To better understand the specifics of this opportunity, please contact our associates.
  • Investments in Vivakor’s VivaOpportunity Fund’s Remediation Processing Center will be eligible to receive potential royalties and since it does fall under an oil and gas investment you will qualify to receive those additional tax benefits as well, including a K1 tax deduction.

After going over the types of oil investments we need to get back to our main point, how do I use these investments for my retirement? One option is to direct your retirement funds to be used in stocks. Another way is you can transfer your money, IRA or 401K into a self-directed IRA and use it to invest in alternative investments.

  • You can roll over from your IRA or 401K into a self-directed IRA without any taxes or penalties.
  • A self-directed IRA works the same as a traditional IRA and includes the same tax benefits but you have the additional option of investing in more diverse areas such as precious metals, real estate or alternative investments.
  • As we went over above, investing into an opportunity zone investment such as Vivakor could bring in passive income as royalties for your retirement.
  • Investments in other areas of oil could be in the form of dividends which could help grow your retirement as well.

After detailing oil investments, you should have a better understanding of what these investments are and how they can benefit your retirement. If you are someone who is curious or have any questions about investing in oil or alternative investments, please reach out to us at info@blackstonecommodity.net or (949)401-6897 and one of our representatives will contact you or visit this link at www.blackstonecommodity.net/vivakor.