Oil, often referred to as “black gold,” is the natural resource behind a significant portion of the globe’s energy usage. Because oil is needed and utilized all over the world, it makes sense that investors may view it as a viable investment product.
There are many different ways to invest in oil, either directly or indirectly, and prices are regularly quoted in almost all major financial media publications. In terms of investment vehicles, investors have a wide range of products to choose from based on their investment objectives and risk tolerance.
One of the ways to invest in oil is through an oil well. These investments are often set up as limited partnerships or similar structures. An oil well investment requires investors to put up capital for the exploration and/or drilling of an oil well. If the well produces oil profitability, investors may be entitled to a portion of the profits.
Another way to invest in oil is through oil stocks. These stocks can include oil producing companies, as well as refiners, transporters, explorers and more. An oil stock, such as Exxonmobil, may potentially rise in value through higher oil prices or profitability in its operations. In addition, stocks may also pay investors a dividend.
For speculators willing to take on significant risk, oil futures contracts traded on an exchange may be another way to bet on oil prices. These contracts allow speculators to potentially profit from both rising and falling oil prices, depending on which way the investor bets. Options contracts are also available on such contracts, and can be used to speculate on both higher or lower prices as well.
As one of the largest markets on the globe, oil investments are extremely popular. The oil market can be affected by numerous issues on both a global as well as local scale. Supply shortages, new finds, transportation issues and geopolitics can all fuel movement in the oil market. Due to the many potential inputs on oil prices, the market can see extreme levels of volatility with wild swings in price. Such wild swings, however, can potentially present viable investment and trading opportunities. Such investments also carry significant risks.
Before getting involved in the oil market, potential investors should carefully consider their objectives, financial situation and risk tolerance before putting any capital at risk.
*This post originally appeared on www.adamkuettel.net.
Although there is great interest in investing in stocks, bonds, and other funds, many individuals are hesitant to do so due to the fear of market instability or even downturn. However, with the stock market on the rise, now is as good a time as ever to dive into the realm of investing.
Here is some advice all first-time investors should adhere to:
Do your research
One of the best ways to overcome the common fear of investing is doing ample research. The financial realm is filled with jargon and acronyms that can be extremely confusing to first-time investors. So, it would be wise to improve your financial literacy by researching the basics of stocks, bonds, mutual funds, and even commodities like gold and silver. Try reading the works of seasoned financial experts as well, as these publications will likely offer a great deal of insight.
Save before you invest
Although there are plenty of inexpensive stocks on the market, it is imperative to establish a sizable emergency fund just in case something goes awry. Many experts suggest that first-time investors save at least 6 to 12 months’ living expenses before even looking at stocks. Following this advice ensures you will have enough money to safely avoid a financial crisis and time to get yourself back on your feet.
Determine what you are investing in
Once you have become familiar with the market, as well as saved the recommended amount of money, you can begin searching for the right assets for your budget. One option to consider is an exchange-traded fund (ETF) like SPY. This particular investment seeks to provide results that correspond to the price and yield performance of the S&P 500 Index. Although this means you will be investing in small stocks from 500 separate companies, this method is one of the most secure, seeing as it is highly unlikely that all 500 companies would bottom out at the same time.
Establish your long-term goals
It is important to remember that investing is not a surefire scheme one can employ to get rich overnight. Investing requires not only research, but time and patience as well. Therefore, it is important to set realistic goals and refrain from expecting a large return within even your first five years. By establishing this mindset early on, you will be less likely to venture from your original plan or pull out of the market all together.
Control your emotions
It is easy to be perturbed by the constant fluctuation of the stock market. However, it is important that you remain consistent during both booms and busts. Do not let your emotions rule your investing decisions — otherwise, you may end up losing the portfolio you worked so hard to establish.
*This post originally appeared on Adam Kuettel | Financial Planning.
Keeping your finances well organized is absolutely imperative if you want to be responsible with your income. To pay penalties for the late payment of bills is not desirable in the least, nor is it optimal to have a lot of debt and not much savings.
When your finances are not organized well enough, it can lead to a lot of stress and strain. If you want to learn how to keep your finances organized, the above steps will help you stay on track.
Create a Monthly Budget for your Expenses
The first thing that you need to do is create a budget for expenses every month. You should create the budget in the beginning of the month, and make sure that you follow this budget to a tee. If you stick to your budget, you’ll be sure to not spend excessively, and you’ll increase your savings.
Pay Bills on Time
This tip might be a no-brainer, but it’s still worth mentioning. You should always try to pay your bills on time even if it means missing out on purchasing “fun” things. When you pay your bills on the date that they are due, you avoid paying a late fee and consequently feel less stressed.
File Taxes on Time
Filing your taxes on time is also extremely important if you want to keep your finances organized. You should always keep some money in savings so that you’ll be able to pay any fees associated with filing taxes.
Use Internet and Mobile Banking Services
You should opt for the use of mobile banking or internet banking in order to make your payments so that these get processed in a smooth and hassle free manner. By using either mobile banking or web banking you get to make instant payments and avoid any delays. You can also easily check your balance as often as you want.
Use the Services of Finance Professionals
Hiring the services of a tax accountant or a chartered accountant can prove to be beneficial for you if you are looking to keep your finances organized. There are many different kinds of finance professionals out there who can help you become more organized with your money. If you’re not sure where to start with managing your income, you should definitely reach out to a professional for some guidance.
If you keep the above points in mind you’ll be able to easily keep your finances in order.
Adam Kuettel is a successful Financial Advisor who is currently serving as a Managing Partner at NWA Financial Partners and Partner at Argo Capital Partners.
Adam has always been fascinated with financial markets. Combine this with his passion for helping others, his career as an advisor was a natural fit. He has the skill set and knowledge to help guide his clients make sense of their financial lives, whether it is saving for retirement, putting kids through college, estate planning or tax planning, among other services.
A graduate of the University of Central Arkansas, Adam Kuettel has a Bachelor’s of Business Administration in Finance and Marketing.
Following his educational endeavors, Adam has played pivotal roles at numerous financial firms. Adam began as a Financial Advisor at Beall Barclay & Company, PLC where he was part of a five member wealth management team. Located in Northwest Arkansas and the River Valley, Adam worked directly on Northwest Arkansas Accounts. He was tasked with designing and presenting investing, tax, insurance and benefit strategies for clients. In addition, Adam maintained the current firm client book, while actively growing assets.
Adam Kuettel transitioned to a wholesaler position at Dividend Capital, located in Denver, in 2010. During his first year with the company, Adam increased the capital inflow of his region by 781% and led education efforts for clients and advisors on alternative assets. Furthermore, he led capital raises internally for the Southeast region for Industrial Income Trust, a $4 billion REIT.
In 2011, Adam made another shift over to Preadium Consulting. Working as a Principle, he helped develop a sales platform for 1031 exchanges and led research endeavors on national 1031 market for clients. Adam also successfully facilitated institutional transactions between institutions and clients.
Argo Venture Capital is based in Bentonville, Arkansas. The company focuses on making investments in seed, early and formative stages to companies centered around consumer packaged goods and retail. There are four partners in Adam’s firm, three specializing in retail and Adam specializing in Finance.
Argo Venture Capital stands out because of their level of understanding, connectivity and past success in and around the consumer package goods and retail space. They are able to build brands and commercialize them because of their deep level of understanding of how to work with consumers and retailers. The company has a broad network inside of the world’s largest retailer as well as CPG companies that they can draw on. They have has many past successes and plan on having many more in the future.
- Certified Financial Planner
- Accredited Portfolio Management Advisor