When you were approached about access to the fossil fuel resource on your property, it was a dream come true. You thought back to the days of poor people becoming millionaires because they struck “black gold.” Times have changed, as has many people’s opinion of the fuel industry. Consequently, what was once considered a gold mine is now considered an environmental demon. This does not mean, however, that you cannot continue to reap the benefits of your royalty investment. You can. You just need a little help from some friends.
The Ever-Changing Global Landscape
For nearly the last decade, those who hold mineral investment as part of their portfolio have been hit hard. Not only has the fuel industry been under intense scrutiny for its negative effect on the environment, the gem industry has also been under fire for its inhumane and brutal treatment of its workers. In the gas and oil industry alone, those holding royalties have seen decreases of up to 80 percent in their earnings, and even if the reduction in earnings wasn’t quite that high, many received only half of what they had in previous decades.
This could or could not change with the administration voted into office in 2016. Despite evidence to the contrary, the new administration has loosened regulations over the fuel and oil industries, which bodes well for investors, even though it’s a disaster for the environment. This isn’t your concern, however. Your concern is receiving the highest returns on your royalty investment, and it will take time before the new regulations improve the fossil fuel industry. In addition, a majority of the rest of the world remains dedicated to protecting the environment.
You Need Some Investment Advice
In this unstable investment landscape, it’s wise to re-evaluate your property and its potential return on investment. Your interests have taken a hard hit as people have become more environmentally conscious, and this isn’t likely to change any time soon. At least one would hope not with global warming so evident in scientific studies. Nonetheless, it’s always wise to review your portfolio every couple of years, and this includes the royalties you receive on your properties.
When you enlist the help of a professional investment company that specializes in royalty and mineral investing, you enlist the expertise you need to determine if it would be in your best interest to divest your interests now, divest only a portion of your interests, or to keep things as they are. The bottom line is you want to receive as much money from your royalties as you can, and it might behoove you to divest everything for a lump sum now.
If things look as if they will remain at a standstill, you might want to receive cash now that you can invest into other options. This way you maintain the stability of your portfolio by moving your risk to a higher-paying security. A professional advisor can offer you cash for your royalties, and you can use that money for other things, such as paying off debt or retiring early. It’s up to you. The bottom line is to make your royalty investment work to your benefit.