re: Valdosta St U thread : Locals keep us posted

But of course, you aren't giving tax advice. You are just saying.

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merely illustrated an example of a mechanism or tactic possible in the world of investing. Nothing I stated can't also be found on the Internet.

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Are the returns from the energy consortium annuitized?

Questions for these fellas:

-What flag is flown by those who plot daily/nightly/yearly to take your guns away?
-What flag is flown by those who have hijacked your healthcare system?
-What flag is flown by those that have squandered this country's fortune and ENSLAVED you and your kids and grandkids and infinity into unpayable debt?
-What flag was flown by the terrorists that marched through Georgia 150 years ago raping, burning, and looting your state until it was forced to have a star on that rag???
-What flag is flown over the concrete buildings where they listen to your phone calls and read every text and email you write?
-How many of babies are murdered in the womb under that flag every day?
-Etc, infinity..........................


Stockholm SYndrome - It's the only explanation.





s.i.y.g.'e.

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What's your partnership worth if the company's financial success is based on break even oil prices at $80 or higher per barrel?

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That's the risk in this type of investment.

Every investment, where you can't purchase guarantees (like a GMIB/GMWB annuity), of course has risk. There are no sure things.

With oil and gas partnerships, you got the immediate tax writeoff, so day one you're already up 20-40% depending on what income tax bracket you're in.

The likelihood of it going belly-up and you losing your 60-80% remaining outlay is very low. The drilling may be forced to stop, but the company still has assets to sell too. You'll recover some more of it. But a loss is a loss. You take that risk in every investment.

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I was reading where over 50% of the US oil shale producers could go belly up over the next year at current pricing levels.

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It's possible. But make sure you understand the difference between "oil" and "gas" in those discussions/predictions. It makes all the difference in the world.

And like everything else that involves money, corruption and 1%'ers are somewhere behind the scenes manipulating the whole thing to their ultimate benefit.

There's over 10,000 private companies drilling and producing oil and gas in this country. The big oil companies like BP, Conoco-Phillips, Chevron, Exxon, etc., don't typically do these smaller 20-100 well projects that require private equity investors (like you and me) to make the project happen. These small private companies do them, and in many cases once production is proven to be steady, longterm, and hits certain profit margin levels, the big oil companies will swoop in and buy the project, and the small company will take the big pay day, cash-out their investors (you and me) with the appropriate percentage of the profits according to our amount of interest in the project, and then the small company will take their cut that's left over, which is typically substantial, and they go start their next drilling project.

Some of what's happening right now with oil prices being so low, is A. Someone is trying really hard to put a hurting on Putin/Russia, and B. Big Oil wants as many of the small private oil drilling/production companies to become super cheap to buy or simply kill the competition so when they cause demand to go back up, it's them that's satisfying more of the supply.

Now all that said, "OIL" is what's in play here and where all the danger is. "GAS" is not. Gas is on a totally separate supply and demand and pricing scale from Oil. And the companies that are in danger of going belly-up to Big Oil are the ones who are virtually 100% Oil exploration/production only.

If you avoid those companies and invest in ones who do both oil and gas, mostly gas, or nearly all gas, you have WAY lower risk and are much safer.

In addition, if our a-hole politicians ever release restrictions on building new refineries in this country, along with a pipeline stretching from Alaska->Dakota's->Gulf, essentially stretching thousands of miles and going straight down the middle of our country, our entire way of life would change.

We'd have a surplus of jobs. The only unemployed in this country would be the disabled, the old/sick, children, and the lazy. Wages would go up significantly. Our GDP would likely double. The US would become the worlds leading energy supplier (natural gas). Government revenues would double or triple. Our debt would get paid off. And our unfunded liabilities would slowly get back to the black.

We have 300+ years of natural gas just sitting under our soil waiting for a-hole 1%'ers of the world to quit fricking around with Oil in the Middle East and Mexico and manipulating the market to maximize their Petro-Dollar. And one day it will happen. As a result, I and my clients are getting in early.

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Are there any other similar investments that don't require being a qualified investor?

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Yes. Non-traded BDC's (business development companies). Franklin Square Energy and Power Fund, for example. You only need $5,000 minimum investment and you just have to qualify to participate in Alternative Investments. Which is only $70k combined family annual income. You can even buy these inside an IRA or ROTH.

The only difference is, you are not a general partner, so you do not get the tax writeoff. But, you do get to participate in private equity oil and gas. AND, your distributions/dividends aren't fully taxed. For example, if the Fund is paying an 8% distribution, which let's just say happens to be $1,000 to you, your 1099-D at the end of the year won't say $1,000, it'll be something less, like $700 or even $600. So instead of paying tax on the $1,000 you received, you only pay tax on the smaller amount shown on your 1099-D.

Also understand that all these things are pretty illiquid investments. Once you purchase them, you either can't request your principle back or you have to jump through a million hoops to get some of it back. Also, I'm using a lot of generic hypothetical numbers just to illustrate. I'm not giving advice or making recommendations, just explaining how things work and what I may be doing.

Beefdawg...You come across as someone I need to talk to soon. Getting ready to transition out of the USAF soon and need to look into some investing opportunities. Been out of the market a while, long story, with no advisors to speak of at the moment (another story). How do I contact you without compromising your rant anonymity?