[Posted on June 2, 2014 by Michael L. F. Slavin]
Between the broken Internet stock bubble of 2000, the following recessions in 2001 and 2007, and the housing market collapse in 2008, millennials have witnessed a lot of economic turmoil in their lifetimes. Consequentially, the millennial generation tends to be much more conservative about their investments than their parents and grandparents. Many consider a five year investment to be long term, and many more avoid investment altogether. Unfortunately, few realize how dire of a mistake that may be. In many ways, the millennial generation, those in the 18-3 age group, are in the prime of their investment lives. And like any other aspect of life, choosing to wait for a later time may result in squandering some of your best opportunities for investing in oil and gas.
Young adults face several substantial financial obstacles. They may endure years of repaying student loans while staffing low-paying junior positions, and inexperienced in matters of budgeting, they may also poorly manage what little money they do earn. While our golden years always seem a long ways off in our 20’s, especially compared to the alternative of a new iPad you can have tomorrow, beginning in your youth without a doubt the best way to enter into the world of investing with oil and gas.
Young adults have an immense time advantage on their side. Millennials have the opportunity to take advantage of compounding their investments by reinvesting their earnings, which is a recipe for financial success that only requires time. An investment of $10,000 at age 20 can grow to $80,000 by the time you’re 60 with a modest 5% interest rate. But the same $10,000 investment made only 10 years later only yields about half the return, and even less when you invest at age 40 or later. The more time your money has to work, the more it can do you for.
Age also influences how well you can endure the investment risk. People who are approaching retirement need to rely on low risk investments like bonds or certificates of deposit. More capable of rebounding from a risky investment, young adults are capable of investing in things that might produce much larger returns. Young investors are also better positioned to learn from their investments, and starting young gives ample time to study the market and become a wise investor.
Millennials Should Invest in Oil
Oil and gas are a billion dollar industry. The central importance of the energy sector also means that those who invest in oil and gas are often the beneficiaries of special tax incentives, many of which can be taken advantage of in the first year of investment. This includes the enormous benefit of 15% of your investment income being tax free, and 100% tax deductible. Millennials looking to mitigate risk and invest in oil can do so with the help of U.S. Emerald Energy, one of the world’s leading experts in exploitation of known reserves. By allowing investors to individually and directly take part in energy investments, U.S. Emerald Energy can help you invest in some of the safest oil investments available today.
Oil and gas makes sense for millennials because of the relative low risk of the investment. Reserves have the benefit of near physical invulnerability; they can’t be burned by accident, they can’t be bombed, and they’re buried so deep in the earth that they’re safe from every variety of natural disaster. Investments in oil and gas can continue to pay off for two or three decades into the future, providing a reliable stream of income largely independent of the fickleness of stock trends.
Oil and gas also provide long-term investment value. While it’s true that oil and gas wells deplete with time, many oil properties only become more valuable with age. As productive zones are redeveloped, and new production techniques are developed, production is increased. Alongside the fact that oil and gas prices steadily rise with time, and the world’s persistent and steady reliance on oil and gas, there may be no investment more certain than investments in energy. With so many advantages, it’s no wonder why nearly every position at the top of the Fortune 500 is occupied by oil companies.