Courtney Moeller explains why oil investments don't work for people who need a fixed monthly income. Distributions fluctuate with well production and market prices, but investors may get tax benefits that reduce taxes to zero and strong cash flow if they can handle the volatility.
If you need a steady monthly income, and you need it to be $5,000 a month, every month for this time, oil might not be the right space for you to be in because those numbers are going to fluctuate based on how the wells produce and what the price is going to be. But if you can withstand some turbulence and some higher prices and lower prices, higher distributions and lower distributions, this is a fantastic asset class to get involved in, to reduce your taxes potentially down to zero depending on what your investment is, and to get really good CA flow.
