When it comes to investing, millennials are a study in contradictions. Mainstream media often paints people from the millennial generation in a negative light, however trends show they are more financially savvy and responsible than stereotypes suggest. Compared to the boomer generation, they save more (71%) and start younger (at 24 years of age). And, one in six of them have already saved more than $100,000 (Forbes).
At the same time, however, two-thirds of them do not trust the stock market, and many choose to hoard their cash rather than put it into retirement accounts. Scared by the stock market crash in 2008, they want to avoid an investment vehicle that they perceive as being unreliable.
The good news is that millennials have options when it comes to building wealth securely outside of traditional stock market endeavors. In fact, through vehicles such as U.S. mineral investments, millennials have the opportunity to enjoy a rapid growth of wealth in a low to moderate risk environment.
U.S. mineral investments are relatively low risk.
U.S. mineral investments offer a relatively secure environment for millennials' money to grow. This form of investment involves purchasing the rights to minerals that are under the surface of the ground, in most cases oil and gas. Those rights are then leased to oil or gas companies that wish to drill for and produce those natural resources. These leases provide investors with cash before a well is ever drilled in the form of upfront lease bonuses.
In addition, these leases guarantee mineral rights owners a certain percentage of revenue from every barrel the well produces. This monthly royalty, which can range from 12 to 25 percent, is paid before any expenses are deducted from the well's income, and is paid regardless of how oil or gas performs on the market. Making it even more beneficial, the mineral owner pays taxes on only 85% of the revenue received.
The mineral owner benefits from two sources of revenue; the upfront lease bonus and the royalty checks once the minerals are in production. In addition, this type of investment possesses a significant chance of success without the subsequent liability for the well, responsibility for any expenses associated with the well, and very little chance of losing money even if a well ends up dry or under producing.
Interesting Fact: According to U.S. Trust, studies show that people from the millennial generation even collect more art valuables, about 43% more than baby boomers.
US mineral investments provide rapid growth of wealth.
U.S. mineral investments also offer millennials the opportunity to rapidly build wealth. For example, here at Redhawk, with more than two decades of experience and a team of experts enhancing the viability of every investment, we can confidently forecast that the purchases we make will return strong ROIs for our investors within a 5-year period. This turnaround period allows our investors to reap significant profits from their investments very quickly.
U.S. mineral investments are not the stock market.
For millennials, it can be doubly appealing to embrace an investment channel that is free from the stock market. This generation is known to be wary of the stock market (CNBC). Our mineral rights investments do not historically mirror the ups and downs of the stock market. In fact, thanks to upfront lease bonuses and royalties, oil prices would have to approach $0 a barrel in order for mineral rights investors to lose their money.
Investing is definitely not out of reach for millennials. Instead, younger generations can achieve a strong growth of wealth, within a short period of time, and with relatively low risk with U.S. mineral investments. And through Redhawk's Minerals Fund II LP, accredited investors can begin their journey with initial investments as small as $25,000. Do not hesitate to reach out to Redhawk Investment Group, LLC to learn more about this exciting investment opportunity.
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.