Retirement income investments can help you expand your nest egg and enjoy a more comfortable retirement. Because you want to be sure those investments succeed, it is important to find investment channels that are low risk, high yield, and generally easy to understand.
To that end, individuals often choose to invest in real estate. Its perceived stability and relatively high return on investment make it appear to be a strong candidate for retirement income investments. What many people may not realize is that mineral rights ownership can provide significant cash flows at lower risk and can be a smart way to maximize your ROI (Return on Investment).
Mineral rights carry a low level of risk that allows for more confident investing.
Because you will be relying on your retirement income to sustain a comfortable and rewarding lifestyle, you may want to avoid investing it in high risk environments. You want instead to establish a healthy monthly revenue and earn a strong ROI within a low to moderate risk environment.
Despite the reputation that oil and gas investments have for volatility and risk, mineral rights are actually relatively secure investments. Owning mineral rights, especially through minerals funds projects such as those offered by Redhawk, gives you a great deal of security.
When purchased in the right location at competitive prices, mineral rights are virtually always in demand, can provide upfront lease bonuses that are completely separate from anything the land actually produces, and guarantee you regular income over the lifespan of wells that are producing from your mineral rights lease.
In addition, you are never responsible for the actual capital costs of the well, nor do you take on any liability for the expenses to create or operate the well. That means that you enjoy profits that are not diluted by expenses that other types of oil and gas investments must account for.
With the security of an investment that will continue to deliver profits to you over the long term, you can invest your retirement income with more confidence. You can enjoy a steadier and therefore more rewarding return on investment over the course of many years, and a ROI that can help to fund the comfortable retirement you desire and deserve.
Mineral rights provide high yields.
Traditionally, the lower the risk of your investment, the lower the ROI will be as well. That is why investors, especially those using their retirement income, must try to balance risk with reward. The best investments are those that maximize the ROI while minimizing the overall risk. Mineral rights make an appealing choice for retirement income investments because, while presenting a low to moderate risk, as discussed above, they also deliver an impressive ROI.
There are two ways to evaluate an investment’s profitability. One is the ROI itself. Redhawk’s current minerals fund offering within the Oklahoma STACK Play is estimated to provide an ROI of 2.7 to 3.5 times the initial investment over a 5-year period. This is a very strong return for an initial investment with an entry level as low as $12,500 (there are limited openings for the $12,500 slots). That combination of low initial investment and high returns makes these mineral funds a smart choice for retirement income investments.
The second way to evaluate an investment’s profitability is the internal rate of return, or IRR. The higher the IRR, the more profitable the investment will be. Redhawk’s current minerals fund project has an estimated IRR of 25 percent or more, making it a very profitable pursuit for accredited investors looking for high yield projects.
With the potential to make two to three times, or more, from your investment in mineral funds, with a 25 percent or greater IRR, a mineral rights investment looks like a strong choice for maximizing your retirement income investments. Not only does this project offer a low to moderate risk environment, it also provides strong returns that can help you to quickly grow your retirement nest egg and enjoy high yields over the long term.
Mineral rights ownership can provide long-term cash flow.
Finally, mineral rights can maximize the ROI of your retirement income investments by providing a steady income over the course of many years. You can choose to lease your mineral rights or sell them. The production company to whom you lease the rights will agree to pay an upfront lease bonus and a certain percentage as a royalty for every barrel of oil or natural gas they remove. A company buying them can pay you a handsome multiple based on production and reserves. These royalties can be very lucrative, usually between 12 and 25 percent of gross revenues before any deductions for expenses or operations.
This means that as long as the well(s) drilled as a result of the lease continue to produce, you will continue to enjoy a return on your investment. And, since mineral rights can be passed down to others, you can even provide your loved ones with a legacy by passing down your mineral rights, and the royalties you earn from them.
The result can be decades of royalties, which means decades of ROI, from your mineral rights. This type of steady income, paired with a strong ROI and low risk environment, can make mineral rights a wise choice for retirement income investments. They can provide you with the comfortable environment you desire for the length of your retirement.
Mineral rights ownership can be a smart choice for retirement income investments. Upfront cash lease bonuses and royalty payments of up to 25 percent on every barrel produced means you can earn significant income that can result in ROIs of three times or more what you put in. With little to no liability for capital expenses reducing the amount of money you receive also increases your ROI. The low to moderate risk environment of mineral rights can ensure that your retirement income will be there when you need it.
The material herein does not constitute an offer to see nor is it a solicitation of an offer to purchase any security. Offers will only be made through a private placement memorandum to accredited investors and where permitted by law. Investments in security are not suitable for all investors who can withstand the loss of their investment. Investors should perform their own investigations before considering any investments and consult with their own legal and tax advisors. Past performance does not guarantee future results. This presentation is copyrighted material and only for the use by Redhawk Investment Group and its affiliates.