Alternative Investments: General Overview
A financial asset that does not fit into conventional investment categories is referred to as an alternative investment.1 Stocks, bonds, and cash are considered conventional categories.
Alternative investment opportunities, on the contrary, fall outside of these more traditional categories. For instance, investing in the Oil and Gas industry can be classified as an alternative investment.
Why Accredited Investors Choose Oil and Gas as an Alternative Investment Opportunity?
Accredited investors may turn to the Oil and Gas sector for several reasons:
- Significant Tax Benefits: The Oil and Gas industry is renowned for its valuable tax incentives. These benefits can be especially advantageous for high-net-worth individuals who are self-employed, have received high W-2 wages, recently sold a business or property, received a bonus, paid required minimum distributions, or exercised stock options. Oil and gas tax deductions can provide substantial relief during tax season.
- Potential Monthly Income: Investing in Oil and Gas can generate monthly income, particularly during periods of high commodity prices. As global energy demand increases, these investments can potentially yield significant long-term financial rewards. Commodities like Oil and Gas have historically acted as a hedge against inflation, benefiting investors as the prices of goods and services rise.
- Portfolio Diversification: Investing in the Oil and Gas industry not only offers tax advantages and potential income but also provides a means to diversify your investment portfolio. Diversification can help balance risk and reward, protecting your portfolio from market volatility while tapping into new growth opportunities.
Alternative investment opportunities outside of the stock market, such as directly investing in the Oil and Gas industry, can help Accredited Investors reduce their tax burden, diversify their portfolios, and earn potential monthly income.
Learn more about alternative investment opportunities in the Oil and Gas sector by speaking to a representative from Crown Exploration’s exclusive FINRA-Registered Broker-Dealer. Get in touch today!
Sources:
1: Chen, J. What are Alternative Investments? Definition and Examples. Investopedia. https://www.investopedia.com/terms/a/alternative_investment.asp