5 Ways To Acquire a Monthly Income With a One-Time Investment
5 Ways To Acquire a Monthly Income With a One-Time Investment
Monthly income investments have the potential to offer immediate, practical benefits to wealth generation portfolios. Whether fixed annuities or the scalable earning potential of oil and natural gas production, the investment goal is to bring liquidity or stability, or both, to a financial position.
Beauty is in the eye of the beholder, though, when it comes to investing in an income stream, as each of the major avenues for investment includes unique pros and cons. As with any opportunity, the more ways to benefit from a particular investment strategy, the better.
Most investors will consider one of the following types of investments, depending on their financial goals, age, and ambition:
- Certificate of Deposit
- Bond Funds
- Real Estate
- Oil and Gas Investment
The potential monthly income earners listed above each bring something unique to a wealth generation portfolio. In some cases, the monthly income itself is the chief reason for investment. For investments like oil and natural gas, monthly income is only one of several ways to potentially profit.
Let’s take a closer look at the different types of monthly income investments.
1. Certificate of Deposit (CD)
A Certificate of Deposit (CD) is an agreement between you and your financial institution wherein the institution will pay you interest on a lump sum deposit if, in return, you promise not to touch the funds for a specified amount of time. It’s a straightforward way of generating interest with little risk.
The best CDs offer better-than-savings interest and predictable returns at the cost of reduced liquidity, but they are a conservative option.
2. Bond Funds
Bond funds, like managed funds, offer smaller sum investors access to professionally managed portfolios of diversified holdings. Such funds are among the most reliable available to investors, with U.S. Government Bonds considered to be of the highest credit quality.
The duration of Bond Funds varies, but as they act in direct opposition to interest rates, shorter-term investments are often more reliable.
3. Real Estate
Real estate, one of the most common forms of monthly income investments, generates ongoing revenue through rent. However, the most significant wealth accumulation may occur after a property has appreciated and its full value is realized in the final sale. Still, worthwhile revenue may be generated on an ongoing basis—although mortgage payments and maintenance costs can reduce this income.
An annuity turns a lump sum payment into a fixed monthly income stream. Retirees commonly pursue annuities to introduce revenue reliability in place of a steady paycheck, and it generally pays out until death. As such, a superannuation sum is effectively converted to a living wage. Annuities are entered into with insurance companies and can be structured to return a profit at the end of a fixed term.
5. Oil and Gas Investment
Unlike the options outlined above, investment in oil and natural gas has the potential to generate monthly income through the generation of a saleable product. Investors purchase a percentage of a well, an oilfield, or an energy fund and may receive monthly revenue from production. After a Fund receives subscribed capital as presented in the offering memorandum and deploys this capital for oilfield development, consistent monthly distributions of net production income from the oil and gas sold in the prior month may be distributed to the investors.
As is the case with real estate investment, which can be similar to oil and gas, the more substantial portion of ROI derived from oil and natural gas investment may result from the sale of an asset that has accumulated value.
And there are additional ways to benefit from oil and natural gas investment, especially with an emerging strategy that prioritizes an investor-first model of operation.
Oil Wells Have the Potential To Produce Monthly Income and More
Oil wells produce oil and natural gas. There are, however, revenue-generating opportunities that surround the production of natural commodities, and they begin before a single barrel is ever produced.
Tax Breaks – Direct investment in oil and natural gas production may entitle investors to an enviable range of tax benefits. The most immediate of these are deductions for intangible drilling costs (IDCs) and bonus depreciation allowances. Investors may claim first deductions of up to 90% invested capital against their adjusted gross income.
Rapid ROI – Successful oil wells may lead to a partial sell-off to a public company from an increase in the value of oil and gas mineral acres and the oilfield being developed. The benefits from this partial sale may be used to cover an initial investment cost in 1 to 3 years.
A Scalable Asset – Direct ownership in an oil and gas energy fund includes the potential to pursue multiple drilling locations and allows investors to potentially profit from each drilling location either developed or to be developed at a future date.
This advantage stems from an innovative new approach to oil and gas investment that prioritizes investor returns by the development of an oilfield in comparison to the development of a single well or group of wells..The clear end goal is the possible divestiture of the oilfield yielding a possible multiple return on invested capital and as a source of monthly revenue during the oilfield development period.
Monthly Income Investments With a Clear Goal
King Operating Corporation’s innovative approach to investment is guided by a wealth of experience in oil and gas. Depth of experience coupled with knowledge of the latest horizontal drilling techniques has enabled King Operating Corporation to increase the value of oil and gas mineral acres. By targeting sites of proven production, King Operating Corporation offers investors the potential of consistent monthly revenue distributions and the ultimate ROI of a planned sale to an external company.
A single investment opportunity that brings the potential of both monthly income and a clear divestment is well worth considering for future wealth accretion.
Investments in oil and natural gas partnerships are speculative and involve a high degree of risk. Oil and natural gas wells are naturally depleting assets. Cash flows and returns may vary and are not guaranteed. Past performance is no indication of future performance. Nothing herein shall be construed as tax or accounting advice. Investors may lose money. Some of the risks other than those described herein associated with investment in Larimer County Energy Fund are described in the Risk Factors section of the Confidential Private Placement Memorandum concerning the Larimer County Energy Fund accompanying, preceding, or following this Executive Summary. Prospective investors are urged to read and consider carefully the risks described in that section. Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of the investment opportunity described in this Executive Summary. Neither the Securities and Exchange Commission nor any state securities commission has determined the accuracy or completeness of the information contained within this Executive Summary or in the Confidential Private Placement Memorandum concerning the offering of limited partnership interests. The offering of limited partnership interests is made only by the Confidential Private Placement Memorandum, which must accompany, precede, or follow this Executive Summary, and an investment decision can only be made by the execution of definitive investment documents. Investors in Larimer County Energy Fund are required to be “Accredited Investors,” as defined in Rule 501(a) of Regulation D under the Securities Act of 1933.