Oil and Gas Sudden Wealth

Enormous Passive Income = Massive Income Taxes

The first thing oil and gas sudden wealth does is create an enormous passive income, which in turn creates massive income taxes. With our team of accountants and attorneys, we create a strategy that can lower this burden up to hundreds of thousands of dollars every year.

Texas Eagle Ford Shale

When the Eagle Ford shale was discovered in South Texas, the fracking that followed drastically changed thousands of lives almost overnight. South Texas farmers and ranchers now have completely different worries and problems with the onset of sudden wealth. The dream of acquired wealth and comfortable living soon shows its true disposition. Huge taxes, stress, greed, family problems, spiritual issues, and charitable issues are a few of the life-changing problems that go hand in hand with newfound or sudden wealth. This phenomenon, called “Sudden Wealth Syndrome” or “SWS,” creates new challenges and obstacles for families that are almost always unprepared for it.

Sources of Stress

There are many sources of stress that come with the onset of sudden wealth from the Eagle Ford shale. All of this newly gained wealth is soon scrutinized, and nearly half of the royalties from the Eagle Ford shale are being claimed by the government.

The family land that once provided sustenance in the form of a pasture or a crop has been forever changed by the drilling. The dozens of family members who need financial help can begin to cause feelings of guilt or isolation. The new responsibilities that come with having wealth, the expectations, the sleepless nights, the huge income taxes, trying to decide how and where to help others, and deciding how the children will be affected all eventually come to a head. A working-class farmer or rancher is thrust into these things very quickly and without preparation.

Lasting Peace

Many people are still inclined to the illusion that all problems can be treated with more wealth. These Eagle Ford families, though grateful and blessed, have seen that lasting peace and success do not come with wealth alone, but only with God’s will carried out in one’s life. Sudden Wealth Syndrome is a byproduct of God’s blessing that must be handled with grace and wisdom.

Christian Financial Advisors believes that wealth is a gift that God bestows. Managing newfound wealth should be carried out with discernment, wisdom, and care. We help families understand all of these wealth management issues by collaborating with a team of autonomous professionals.

Call (830) 609-6986 to set up an appointment with a representative at Christian Financial Advisors.