All politics aside, you cannot discredit the fact that oil and gas are essential resources in our modern world. It powers our homes, fuels our cars, and propels industries and nations forward. What you probably didn’t know is that natural resources like oil and gas are also an alternative asset that investors can harness to fuel their retirement portfolios.
Power Your IRA with Energy Resources
With a Self-Directed IRA, you can participate in renewable or non-renewable energy through various means, such as funding a privately owned business, investing in private placement offerings of mineral rights, or purchasing real estate with associated mineral rights.
Not sure how to get started? Watch this quick video to learn more about the fundamental characteristics that you should consider when investing in private placement offerings of oil and gas mineral rights.
Oil and Gas Investment Companies
The companies currently listed below are options that our clients have worked with to participate in passive oil and gas investments to diversify their portfolio. Click on the company icons below to perform your due diligence and research.
Phoenix Capital Group was founded by a team of experienced professionals with expertise in software development, engineering, and finance. Phoenix Capital is actively expanding their proprietary architecture to ensure they continue providing market leading services to clients, both investors and land owners alike.
Roles and Responsibilities to Having Oil and Gas Investments
Oil and gas investments in private funds typically provide a lower capital barrier to invest which makes it easier for investors to participate with a Self-Directed IRA. See the chart below to review the investment process for this type of investment.
With a Self-Directed IRA, you are solely responsible for performing due diligence and research on any investment or investment sponsor. There are a few important aspects of these types of investments you should take into consideration.
- Have minimal regulatory requirements and standards – they are not required to be registered with the SEC, provide a prospectus, undergo financial audits, or disclose detailed financial information.
- Are often comprised of ZERO collateral, which means you have the potential to lose your entire investment.
- Are often illiquid. Unless the offering provides a means for you to liquidate your interest, you may be required to retain the investment for an indefinite period of time.
Based on the factors listed above, you can see that investors are subject to the expertise, financial integrity, and good faith of the company. You are investing in the people of the company. This means that thorough research and due diligence should never be taken lightly; especially when you choose to invest the money that is supposed to last you through your golden years.
If you have never engaged in this type of investment, you may not know what steps you should take to perform in depth research and due diligence on a company. Take a look at our blog, “Private Placements: Not the Time or Place for Careless Due Diligence“, to learn more.
As a self-directed custodian, Preferred Trust Company does not endorse, offer, or sell any investments. Preferred Trust Company does not provide any tax or legal advice. Resources are provided for general information. We strongly recommend that the investor seek professional advice from the appropriate legal, accounting, and/or tax professionals prior to making any investment decisions. Selection of the investments and the performance of those investments are the sole responsibility of the investor and not Preferred Trust Company.