Comment

Comment by michael j belaj on June 22, 2011 at 8:43am

Dan this would not apply to stocks only to working interest investors. thanks Michael J Belaj

Comment by daniel cohen on June 20, 2011 at 10:08am

Dear MIchael,

A most interesting perspective. Would that also apply to the stocks of the O & G company, or only to the drilling practice in general or to a specific well? You sound technically hep- may I ask how you came to this particular info/approach?

Many thanks for the thought and direction.

Dan

Comment by michael j belaj on June 20, 2011 at 5:09am

Dan Reinvest your money in what made you the money in the first place Oil and Gas. If you invested in a drilling program or a single well you could write off 75 cents on a dollar the first year intangable and 25 cents on a dollar over the next 7 years tangable. I would take the risk of investing over giving my money to the federal and state goverment. Keep your money here at home and invest in the future of America. thanks Michael J Belaj Cambridge Ohio

Comment by daniel cohen on June 16, 2011 at 4:23pm

Dear Todd,

You advice is right on target, and I appreciate the response. Since my property is in Penn., and I live in N.Y., I'll need someone familiar with N.Y. & Penn. law. Does your friends outfit have that expertise, or would they be able to suggest others who might? I  can be contacted directly at cohendaniel64@yahoo.com should you/they prefer to respond off-board.

Thanks again,

Dan

Comment by Todd Charles on June 16, 2011 at 3:06pm

Hi, Daniel,

Yes, I am familiar with, and utilize all of the "protocals" listed in my reply to you. I know about them through the financial consulting firm that is owned and managed by a trusted family friend of long standing. I live in WV and am leased with a company that is just starting to drill.  We contacted this firm shortly after signing so that we could have things in place before the money started coming. If you don't have the benefit of a long standing association with anyone in money management, it's critically important that you find one.  Contact, communicate and consult with as many knowledgeable "money people" as you can; your bank's trust and finance dept., your lawyer should be able to refer you to either other finance lawyers or money management firms, H&R Block, etc. etc.  - until you find the people/firm to whom you feel most comfortable with entrusting your financial guidance and footing.  I, personally, have no real idea of the logistics of money management - except to know that I need help to manage it - and the firm we use is doing a good job.

Please do seek knowledgeable "money people" to help you secure, insure and make the most of your royalty income. Good luck in your endeavors.

Comment by daniel cohen on June 16, 2011 at 1:48pm

Dear Todd,

You are exactly right. The problem here is that although I've looked into that approach, the professionals who should be informed about such matters are giving me conflicting advice. I've taken the blog route to try to get a better handle on it myself. You seem informed, may I ask if you have any expertise in this, or are in touch with folks who might have?

Thanks,

Dan

Comment by Todd Charles on June 16, 2011 at 1:20pm

Get yourself to credible financial consultants that will help advise you about such things as : living trusts (with total dispersal amoung beneficiaries and/or trustees), Roth IRA's, uniform gifts to minors (up to $11,000 per year), family LLC's, and all other ways you can dispense your royalties among your loved ones - rather than giving it to the government. 

Comment by brian kulp on June 16, 2011 at 12:05pm

hehe i know

 

Comment by daniel cohen on June 16, 2011 at 10:49am

Dear Brian,

Understood-but I prefer to leave any estate to my real heirs, and prefer not to have the government become my principal/main/only heir!

Dan

Comment by brian kulp on June 16, 2011 at 10:04am

live free pay taxes then crocke it the american way.