Texas is known for oil. Often referred to as “black gold,” oil is one of the most lucrative products to come out of Texas. As such, many Texans have rights to oil shares.
These oil shares can turn a nice profit if used correctly. Many people have gotten rich off of oil, and many more will continue to profit off of it. However, some people may not be sure if keeping their shares is even worth the hassle. If you’re not sure whether or not you should keep your share of oil, minerals, or gas, here are some things you should consider.
- #1 Do you need money now?
While oil can be worth a pretty penny, it often takes time to accrue that value. If you’re incredibly crunched for time, you may not have the ability to wait for the paychecks to start coming in. Liquidating your share of oil can help give you immediate cash, something that’s attractive to anyone in need of a little help.
If you’re getting ready to retire, you might notice your retirement fund is looking a little bit scarce. A small retirement fund is what leads to many senior citizens either working well past the retirement age or struggling to pay the bills. A large sum of money from an oil liquidation can add some padding to any retirement fund and allow you to finally relax after your years of hard work.
- #2 Diversifying your portfolio
Oil is a great thing to have a share in, but it’s not the only thing. Potential investors like seeing a well-rounded portfolio, even if the shares aren’t particularly large in and of themselves. Liquidating part of your oil, mineral, or gas shares can give you the quick money you need to invest in other prospects. In turn, you may end up making more money than you ever could by just focusing on oil!
- #3 So you want to liquidate; what comes next?
After you sift through all of the available information, you decide that liquidation is the best path for you. From there, you should find an investor interested in increasing their shares of the oil, mineral, and gas industry.
In addition to a private investor, a mineral auction might be an option worth considering — and The Mineral Auction can walk you through one if you’re unfamiliar. A mineral auction pairs those selling oil shares with those looking to buy- it’s a match made in Heaven. In addition, going to an auction can help settle any questions you may have about liquidation.
Liquidation can be a long process that has long effects on your finances. On top of finding a buyer, you want to make sure that you have the best buyer available. Auctions ensure that you’re getting the highest bidder for your oil share. Furthermore, a mineral broker can help you with any questions about taxes you have. Since liquidating your shares in oil has a massive impact on your taxes, it’s worth meeting with a broker to discuss your options.