If someone told you that you could invest your money in a special company and not have to pay taxes on the dividends, you would assume the person is either crazy or trying to lure you into a scam. This was the impression that most individuals had when they viewed the ad of Matt Badiali introducing Freedom Checks to average Americans. After much skepticism, the investment strategy has been proven to be a legitimate option for the Checks investors. The companies that issue these “checks” are called “Master Limited Partnerships” and Freedom Checks is the nickname that Matt Badiali gave to the distributions these companies pay to their shareholders.
In 1987 Congress passed laws to allow MLPs to operate as tax free companies if they paid substantial dividends to company shareholders and earned most of their revenues from producing, transporting or processing domestic natural resources.The government was trying to increase economic activity and set the stage for the US to eventually become energy independent.Individuals who invest in Freedom Checks tend to earn much higher dividends than traditional dividend-paying companies. MLPs also pass along their tax privileges to their shareholders in that the distributions they pay to their shareholders are not taxed. Tax savings and a higher dividend yield are the reasons that MLP investing can be one of the most profitable investment ways for investors to compound their wealth over time.
Freedom Check investing may also be a great residual income source for a retiree, in addition to a social security payment or a 401 (k).Matt Badiali feels that there is also the potential for many MLPs to have their share prices soar in the years to come. This is because most MLPs are involved in the oil and gas industry and he is bullish on oil prices. Higher oil prices are going to cause the shares of most MLPs to soar. This is also going to increase the profits greatly of these companies and the shareholders of these companies are going to see a drastic rise in their Freedom Checks if higher oil prices do occur. Any investment carries some risk and MLPs are no different. It is important for investors to perform their own research to determine if Freedom Checks are an appropriate investment option.