MY FAMILY PROJECT........OILWELL MONEY

[MacLawn]

Sorry salt, but I have a hard time understanding what you wrote. Is this it?

You worked hard all ye life, inherited 100 acres from Father and grandfather, the land has oil, black gold, TEXAS tea on it, and you want advice as to what to do with all ye newfound wealth? From us? :licking: heheheeee.

1. Get debt free
2. Stay debt free
3. Don't owe anybody anything
4. I'll send ye my info - I need a new tractor!

Heheheheheheeee, well man, I am serious about the first three. That's about all the financial wisdom I know. And, I know how to keep a good strong grip an a cow's tail.

 

[brin]

Now I do have a piece of land in Georgia you might like...I also know of a Bridge ...a big one...you might like it too....Just let me know...

 

[MacLawn]

Now I do have a piece of land in Georgia you might like...I also know of a Bridge ...a big one...you might like it too....Just let me know...

Salt, don't listen to him. The old boy ain't right.

 

[MikeA57]

invest in more land. real estate.

What he siad...

Several years ago "Mom" (my MIL) sold 1 farm and bought another. Her brother had recently died and she didn't want to carry the whole tax burden of all the money from the sale so she took her half and passed the other half to my wife and her brother. We went debt free and are really glad we did. BIL didn't and invested his. Now he says he wishes he would have gone the debt free route. This all happened in '07/'08 so it was right at the start of the slide. We still had a substantial amount to invest and we were in the same boat. After paying off the house and renovating it, I bought the empty lot right behind us and invested the rest in mutual funds. I wish now that I had taken at least some of that money and invested in another piece of property that we could escape to on the weekends.

If I could do it again I'd invest in land. It's not bringing what is was at one time but it will, and they still haven't started making any more of it...

 

[robbyr]

I used to enjoy watching Dave Ramsey when he was on Fox business channel. Always had sage advice. Not sure but I think his website lists some good choices in this area.

Barring that, you could move in with us.

 

[Alan L.]

My advice is, stay away from individual stocks if you choose the stock market. I have never seen anyone even with the "best" advice do better with individual stocks than the S & P index in the long run, and most much worse. This means mutual funds and/or index funds.

I certainly like real estate - especially multifamily residential. Commercial has a higher ceiling but is more volatile and risky.

And don't count on the oil runs lasting forever. Next time the oil prices dip down you will find not only less $$ per barrel but also you will find the spigots being tightened down waiting for the price to go back up, and you'll have no control over that. However right now the prospects are great if you have some good reserves.

In terms of individual stocks, if you do consider them, I have seen good luck with units in publicly traded partnerships in the energy business. Kinder Morgan Energy rings a bell. I have some good returns on those. These are not really stocks - you get distributions that are not treated as dividends but reduce your basis in the units. They usually throw off losses each year (reported to you on schedule K-1) that you can't deduct. Those losses carry over and at the end when you get out you can then take those losses against income on the deal.

 

[milkman636]

Productive farmland is what I would invest in. The land will always have value that you can recoup. It can also produce revenue while you own it, even if you hire someone to farm it for you or lease it out. I think it is the safest investment out there. All the paper investments can evaporate quickly and not be worth squat.

 

[smalltown]

salt the first thing I would do is visit some investment houses such as Fidelity. I would not buy stocks/bonds on my own. You can opt for having them professionally manage your account they way you want for a small fee. Fidelity for example will sit down with you several times for free to suggest things before you commit.

 

[Illini22]

Rich dad/poor dad is a sham. Nothing wrong with in investing in real estate, but not "rich dads" way. He is bankrupted now anyway. Dave Ramsey is another loser that wants you to buy all his crap. Of course you should pay things off ASAP, but you don't need to go to his counseling program. He tells people to save there money, eat beans and rice and then on commercials, tries to sell you his term life, books, counseling and whatever else he is peddling.
Charles Schwab, fidelity and vanguard are 3 company's that offer the best bang for your money. Low, low maintenance fees and a broad range of products. But even they will try to upsell you and talk you out of index funds, so beware. If you act like a sheep they will pounce on your money. Many financial planners will invest your money in 10 or so funds (6 to many) and confuse you. Get 4-5 index funds, sp 500 index,Total stock market index, emerging market index, foreign company index and maybe a bond index. Your all set!
Nothing wrong with real estate, I own 7 homes, a 3/4 acre lot on a ski lake, 6 acres on another larger private lake and a 300 acre farm with 3 sibling. Be careful thou. You have to know what your buying. If your looking at rental housing, you have to believe your stealing it to buy it. Otherwise you could be upside down like many people I know. And whatever you do, don't but something across the country (like rich dad recommends).

 

[Illini22]

Rich dad/poor dad is a sham. Nothing wrong with in investing in real estate, but not "rich dads" way. He is bankrupted now anyway. Dave Ramsey is another loser that wants you to buy all his crap. Of course you should pay things off ASAP, but you don't need to go to his counseling program. He tells people to save there money, eat beans and rice and then on commercials, tries to sell you his term life, books, counseling and whatever else he is peddling.
Charles Schwab, fidelity and vanguard are 3 company's that offer the best bang for your money. Low, low maintenance fees and a broad range of products. But even they will try to upsell you and talk you out of index funds, so beware. If you act like a sheep they will pounce on your money. Many financial planners will invest your money in 10 or so funds (6 to many) and confuse you. Get 4-5 index funds, sp 500 index,Total stock market index, emerging market index, foreign company index and maybe a bond index. Your all set!
Nothing wrong with real estate, I own 7 homes, a 3/4 acre lot on a ski lake, 6 acres on another larger private lake and a 300 acre farm with 3 sibling. Be careful thou. You have to know what your buying. If your looking at rental housing, you have to believe your stealing it to buy it. Otherwise you could be upside down like many people I know. And whatever you do, don't but something across the country (like rich dad recommends).