LIQUIDITY
Holding on to mineral interests limits your options to waiting on monthly checks that are ever decreasing. Selling can give you endless options. Many choose to set aside their lump sum as inheritance for family, or college tuition. Having cash on hand can allow you to pay off debt, retire comfortably or travel the world.
MARKET VOLATILITY
Monthly income from royalty payouts is dependent upon the notoriously volatile energy markets. Many owners prefer a lump sum cash payout to monthly financial uncertainty. In many cases, the overall picture of your financial security becomes clearer when you know exactly how much money you have to work with.
UNEXPECTED LIFE EVENTS
At times people need an influx of cash quickly to make unexpected home/auto repairs, pay increasing medical bills, supplement a loss of income, or any number of unforeseen circumstances.
DIVERSIFICATION
Over time royalty payouts and lease production generally decrease. Many mineral owners choose to sell some, or all, of their interests in order to shift that portion of their investment capital to another type of asset, such as real estate. Diversifying your investments is a way to lessen your reliance on a single asset class.
ESTATE SIMPLIFICATION
The sale of your royalty interests can greatly reduce the costs and paperwork associated with estate planning and liquidation.