While we all envy the person on television like Jud Clampett that receives some great news on a royalty interest, (or misses a rabbit only to hit oil) …in real life frequently this can be more trouble than gift.
Living in Texas a state that produces oil and natural gas royalty rights are very popular and frequently handed down from one generation to the next.
Continued Disposition Problems
We are continuing to run into an ever increasing number of need to dispose of seemingly small mineral right properties that maybe had an offer at one time or another that actually cost more to dispose of them the offer.
Please don’t run out and dump that long ago relative’s income producing oil or gas property that has been in the family for years producing a nice monthly check … but the hundred dollar or seemingly worthless offer for that very small parcel of land that has a very small mineral right may be a good offer not only from a small tax reporting over the years that you may have to do but also from an organization standpoint in your estate.
While there are exceptions and of course when oil prices were in the mid 100s there were extreme cases of payments, it is very likely if you are receiving a very nominal amount of money from your mineral interest over the past decade that that mineral interest likely has very little value and maybe more of a burden to you from a tax standpoint and especially to your heirs from an estate cleaning standpoint than it’s worth.
No Need to Be Reckless – Do some Research
This is once again not an endorsement to go recklessly sell the mass form of income property but rather a recommendation to maybe think twice and do a little research when receiving a seemingly low offer by a professional mineral person who wants to consolidate his portfolio and take that interest off of your hands!
Have a Great “Cleaner Estate” Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
$treet-¢ents 
Thoughts and Forecasts From Kyle Bass … Oil $100/Barrel By Year End 2021 ?
The summer garnered a new found passion towards Podcasts…. While we do our Monthly reviews and Newsletters in an Audio, Video, Podcast like format…. Most podcasts are an hour or longer, making for interesting deep dives into the discussion, especially if the person(s) talking are very intelligent in the specific material….
Hat tip JP for the shove in sharing your favorites…. I have taken the ball and run with it!
In another crossing with this interesting investor, Kyle Bass, on a paid podcast platform, specifically for professional investors…. we highlight Mr. Bass’ current thoughts…
Six years ago, we highlighted his thoughts here in our post and in reviewing his comments, his bets were very correct!
Forecasts and Future Expectations from Kyle Bass
Once again, like we did six years ago, in our public Diary of sorts, we outline Kyle’s thoughts for future reference …. so here we go:
These were actually done in order of the Podcast (basically taking notes while listening) but the most interesting in our opinion are the last three points…
Marked as Forecast, which we have had a lot of lately…will review for accuracy in the future!
Have a Great “Kyle Bass” Forecasting Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents
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Posted in Economy, FOMC, Forecast, Interest Rates, Investing/Financial Planning, Market Comments
Tagged Bass, FOMC, Interest Rates, Kyle Bass, Oil