Couple Invest Self-Directed IRAs in Natural Gas Wells to Fuel a Better Retirement

Bob and Joyce Giddens live life guided by their faith, people of integrity and their own instincts. These common threads led them to each other, to the right decisions and ultimately, to a better retirement lifestyle.

The couple met through a bit of matchmaking from their aunts – two people they admired and respected. Both trusted their guts when it came to choosing career paths. Bob followed his into the electronics industry. And Joyce heard the call to be a teacher for children with learning disabilities. She finally retired after 25 years.

Most recently, the New Jersey couple invested in ownership of natural gas wells, based on the recommendation of trusted friends. “In 2008, we were invited to the home of a church pastor by dear friends,” remembers Joyce. “A natural gas well-drilling company was there presenting to a select group of people.”

Giddens Steer Clear of Market While Earning 10%

The Giddens saw the integrity of the limited partnership group, the well-drilling company, and the general partner, Keystone Energy, a New York-based energy firm, as they received e-mails and spreadsheets on what wells were opening and what they were producing. The couple decided to jump in.

At the meeting, they also heard a client of Equity Trust Company explain the advantages of using a Self-Directed IRA as the vehicle to invest in natural gas. They discovered Self-Directed IRAs allow people to invest in assets beyond just stocks and bonds while receiving tax advantages. Joyce rolled over a tax sheltered annuity to a Roth IRA. Bob converted one as well.

In 14 months of production, the Giddens have earned a 10% return on their initial investment. But, according to Keystone Energy President and CEO, Dan Vogel, the reserves in the ground are where the real money is since the wells are currently only producing about 25 to 30% of their true potential.

“Investing in ownership of natural gas wells is a better option than watching our money going up and down in the stock market, and not really gaining anything,” notes Bob. “We needed a more aggressive but safe chance. We also watched our good friends making money in gas wells.”

The Giddens credit Bob’s Aunt Mary for their interest and openness to better investment options. “My aunt was wise with investments,” says Bob. “She was a widow, a war bride who bought her first home in 1960. Her investments in treasury notes and CDs helped fund the purchase.”

Handing Down Wealth and Wisdom

With four grown children and nine grandchildren, the Giddens feel they’ve made the right move by investing in ownership of natural gas wells with their Equity Trust Self-Directed Roth IRAs. “Another great advantage for us is that we can pass on the earnings of our IRAs to our children and grandchildren,” states Joyce.

The willingness to trust instincts and take a chance has benefitted the couple before. Back when Bob was in the U.S. Air Force working as a ground radio electronics engineer, his intuition and a fellow engineer urged him to learn the latest equipment on the base. This knowledge kept him out of the fray in Vietnam – not once but on three different occasions. Every time Bob’s orders came in his commanding officer ripped them up, said he was irreplaceable and told him to get back to work.

“That’s how faith, listening to the people you trust and following your own instincts combine to bring great results,” says Joyce.

She makes a convincing argument.

Disclaimer: Equity Trust is a passive custodian and does not provide tax, legal, or investment advice. It does not endorse or recommend any contributor, company, or specific investments. Any information communicated by Equity Trust Company is for educational purposes only and should not be construed as tax, legal, or investment advice. Whenever making an investment decision, please consult with your legal, tax, and accounting professionals.