“Technological advances in drilling have opened up future oil and gas reserves"
(PRWEB) November 12, 2014
The IRS permits self-directed IRA holders the option to invest in non-traditional assets such as oil and gas. AdvantaIRA Trust is holding a national webinar on November 13 to further educate investors on how their IRAs can invest in oil and gas projects.
A self-directed IRA is a plan that allows investors to invest in many alternative assets such as real estate, promissory notes, private stock, private mortgages, and oil and gas. Investors should be aware of two types of ownership when investing in oil and gas with a self-directed retirement account, working interests versus royalty interests. Working interest investors own participating, or lessee interests in land and pay capital expenses, operating costs, and royalties to the mineral title owner. Investors in oil and gas working interests incur all of the costs and liabilities, but share in only part of the revenue. If the drilling project results in a successful oil or gas well, the lessor receives a share of the revenue based on the wells production. If the drilling is not successful, the working interest owners will not receive any revenues. In addition, the working interest owners are responsible for 100 percent of the drilling costs and plugging the abandoned well.
A royalty oil and gas interest owner has the benefit of sharing in production revenue, without having to be responsible for capital costs, operating expenses and environmental liabilities. When compared to working interests in oil and gas production, royalty interests have much less risk and significantly higher netbacks. Oil and gas royalty investments have several attractive qualities including potential returns, lack of maintenance and an unwavering demand for these products.
“Technological advances in drilling have opened up future oil and gas reserves,” says Dave Owens, managing partner of AdvantaIRA Trust, “As a result, the United States oil and gas industry is experiencing unprecedented production growth.” Like all investments there are certain risks that need to be considered so it is important to do due diligence before making any investment and to always consult with a tax advisor or CPA for advice. Self-directed retirement plans that can hold oil and gas projects include traditional IRAs, Roth IRAs, SIMPLE plans, SEP plans, and 401(k)s.
Join AdvantaIRA Trust and Royale Energy for this live webinar and learn about an alternative investment that can be made in a self-directed IRA.
Event: Webinar- Invest in Oil and Gas Using a Self-Directed IRA
Date: November 13, 2014
Time: 2:00-3:00 pm EST
Cost: No cost
Register: To register email Brenda Whetsell at Brenda(at)AdvantaTrust(dot)com
About AdvantaIRA Trust
AdvantaIRA Trust is a self-directed IRA administrator that provides tax-deferred and tax-free investment opportunities, superior customer service, and educational tools to assist investors in realizing the maximum benefits possible within IRAs. AdvantaIRA makes it easy to use self-directed retirement plans to invest in assets that the individual investor knows, understands, and can control. To learn more visit www(dot)AdvantaIRA(dot)com.
About Dave Owens
Dave Owens is the managing partner at AdvantaIRA Trust in Fort Myers, Miami, Gainesville, New England, and the Florida Panhandle. Owens opened the AdvantaIRA Trust headquarters in Fort Myers, FL in 2003. His background as a certified public accountant, combined with a long history of personal retirement self-direction, provides his audiences and clients with solid advice and practical solutions to their IRA investment questions. Dave holds a BS in accounting from Purdue University. He also earned the prestigious Certified Exchange Specialist designation through the Federation of Exchange Accommodators.