What are Freedom Checks? That term has probably been Googled nearly a million times in the last few months. Ever since Matt Badiali came out with the viral Freedom Checks video, people have been confused and skeptical. This article should clarify what Matt Badiali means by Freedom Checks and how anyone, including you, can start investing in them. Read more about Freedom Checks at banyanhill.com.
Freedom Checks are a fancy word for Master Limited Partnerships. Let’s get that out in the air. Master Limited Partnerships or MLPs are simply a form of investment. MLPs are similar to, but work differently than, stocks. To become an MLP, a company has to give its shareholders a massive 90% — or more -– of their profits. In return, of course, the company does have to pay the aggressive federal taxes that companies are typically subjected to. Almost all MLPs operate in the oil and gas industry. MLPs came about back in 1987 under statute 26-F. MLPs are also taxed completely differently for the investor which has led them to be called “units” or “dividends” to differentiate them from traditional stock. MLPs are taxed only on capital not on income which makes them fantastic, nearly tax-free, investments.
Why does Matt Badiali want you to invest in MLPs? Why is he called MLPs Freedom Checks? Well, first of all, Badiali wants you to invest in MLPs because, especially as of late, MLPs have been paying out, big. MLPs are great for retirement because they typically pay out higher than CDs, Social Security, and Roth/401(k).
Matt’s main point is that oil and gas in America is booming. Oil exports are up and imports are down. Since most MLPs operate in oil and gas, Matt sees MLP investment as a great strategy moving forward and a great addition to any portfolio. Sure, he is getting a little carried away, but that’s what Matt is known for. Badiali is anything but a bad investor. He has lunches with T. Boone Pickens and has over 100,000 subscribers to his newsletter. The man eats, breathes, and lives natural resources.
Exactly what MLPs does Matt want you to invest in? Well, you would have to be a member of his newsletter to know that. The $49 a month newsletter aptly named the Real Wealth Strategist should have all of the potential investments. He did leave us with some hints about various companies he thinks would be great investments. We don’t do speculation here, so you will have to go check out Matt’s newsletter or watch the video again and piece together the companies yourself. Read this article at Money Morning.
MLPs may make a great addition to any portfolio.