“Freedom Checks” were the big phenomena this year on the investing websites and other media outlets. Upon their dramatic introduction, they were first met with skepticism from average investors and financial pundits. The ads for “Freedom Checks” were extremely sensational and seemed too good to be true. Financial advisor and renowned geologist Matt Badiali is featured in one of these ads holding a check that looks like a government check and it is worth over one=hundred grand. Although the ads did make it appears this was a sort of get rich quick hoax, this is a truly legitimate investment opportunity that is just misunderstood by even seasoned investors.
“Freedom Checks” are the payouts from “Master Limited Partnerships” to their stakeholders. One of the criteria to be labeled an MLP is that the company must pay ninety percent of their profits to people who invest in their company. This may seem like a disadvantage, but they are not required to pay federal income taxes, which means the company has higher profits anyway. An investor in an Master Limited Partnership has a unique advantage in that he does not have to pay any income taxes on his distributions he is paid from the MLP. This is different than regular dividend-paying stocks, where investors pay taxes on dividends. The only taxes the investor pays are the capital gains tax for selling the shares when they decide to liquidate their position This all adds up to a higher rate of return for an investor.
It an individual is dying to get in on the action and start getting their fair share of “Freedom Checks”, they simply need to have a brokerage account and a small starting capital. Some of these companies sell on the major exchanges for as little as ten dollars. An investor can buy shares in an MLP like the way they would purchase shares in any other company. There are currently over five-hundred companies that fit the criteria to be labeled a “Master Limited Partnership”. Once an investor chooses an investment, they will start to receive “Freedom Checks” like the way they would receive a dividend payment.