First of all, they offer a cash flow (business model) investment. After investing a sum of money (minimum US$10000) to buy assets, you wait for six months before you recover your capital over a span of 3-4 years. You will be paid monthly, and every three months, they will pay you another sum of money.

After the breakeven point in a few years, you get to generate a cash flow which may fluctuate depending on how the business is doing or how the oil prices are. This is being compared to a capital gain investment, where you get a one-time profit when you sell and not get any more money.

Once you get your money back, you can choose to invest in subsequent projects, and repeat the process. Then you will have multiple streams of passive income. According to the sales rep, the oil fields in US are estimated to last another 12 years after you have recovered your capital. Based on a conservative estimate by them, you will get 10-14 percent Internal Rate of Return p.a. The oil and gas fields that are chosen are known to be producing. That means these fields are not at the exploratory stage or at the final stage.

You get to own part of the lease. It will be registered at the U.S. State’s County Office.  This is known as Working Interest. This is supposed to work as a hedge against inflation. What Oilpods does is to market the shares of projects to people. Currently, they are at the 8th project, and they started since 2002. The company collaborates with Powder River Petroleum International Inc, which is involved in the production, acquisition and marketing of crude oil development of crude oil and natural gas properties in US.

With oil and gas prices remaining high, the demand should be there. Unlike stocks which require constant monitoring, you will get a sum of money monthly. The cash flow is derived from daily production.

It sounds rather exciting to have such a high return scheme. Of course, any investment carries risk. I’ll discuss some of the risks in my next posting. In addition, some forum goers have expressed concern regarding the company’s operations, so you can find out more before jumping onto this bandwagon. Since I’m doing research on this company, please let me know if you have heard of the company or invested with it.

Sarah Tan

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Taking this year as a great start, why not work out your financial goals for the year, and the next 3 or 5 years. Someone mentioned that with the fast paced society, 5 years were too long.

When you make your resolution, be very specific.
For example, don’t say, “I want to make a lot of money this year.”
Say, “I want to make $8000 a month.”

Be even more specific with how you make that $8000. For example, say “I want to make $2000 from the stock market every month and another $1000 from my passive income.”
Or you could say, “I want to increase my monthly salary from $5000 to $6000 by April.”

Apart from income, you should look at savings.
Do you want to save 10% of your income or increase it to 30%? It may be a vague number, so you may want to be more specific by saying you want to save $1100 every month.

Some of the resolutions I have seen include I want to have $50000 in my bank account by the end of the year. Yes, the money is absolute, but for this to work, the target should be broken down into something more specific. Assuming this person currently has $20000 in his bank account, that means he needs to have $30000 in a year. That works out to be about $2400 a month. This means this person has to ensure that his expenses on entertainment have to be cut down, and he has to increase his savings and other sources of income to that amount. Assuming he can save $1500 a month, that means he has to think of how to get that $900. Should he get $900 from investments, or from a second job? Is this achievable? Or is it just some wild fantasy? It should be achievable.

Having said that, sometimes setting higher standards forces you to totally rethink how money should be earned. A bag that costs $2400 has to be different from a $24 bag. The marketing and promotion strategies will be totally different. The workmanship costs have to be different. The material has to be different as well. The dream the brand can conjure has to be different too. The market audience has to be different as well.

It goes the same for financial goals. Once you know what exactly your goal is, then your resolution will be more successful.

Spend 10 minutes today to work out what you want for your money. If you have time, you can work on other goals, such as health, relationship, work and habits.

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I have friends who run online businesses. They sell clothes and jewellery online, and I think this is a great stream of passive income, since the internet store can be online 24/7. However, using paypal alone may not be enough, since people can be quite lazy to sign up for an account.

To ensure the business owner is able to reach out to all the potential customers, a proper merchant account is needed. Visa, Mastercard, Amex and Diners are some of the major credit card companies and so it is important to have such accounts. Due to the high risk of internet business, merchants tend to charge the Internet businesses at a higher rate, so it is wise to shop around for the lowest rates, so that such charges would not eat into profits.
Sarah Tan- SingaporeProfit.com

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