The Republicans were successful in getting their tax proposal passed. The tax plan will greatly benefit corporations because they will keep more of their profits and enjoy fantastic tax breaks that may enable them to be even more profitable. The average American is likely to get a larger tax refund or pay substantially less in taxes. Individuals may wish to take advantage of “Freedom Checks” with the money they saved and start earning a tax-free income. Many investors will say that there is no such thing as a tax-free investment and believe that “Freedom Checks” are a scam. There are many financial experts who had never heard of this investment opportunity and have questioned whether it is legit or not.
Geologist and financial advisor Matt Badiali is the man who introduced “Freedom Checks” to the masses. The truth is that this investment opportunity has been around for decades and is part of the American strategy to reach energy independence. Until now, only savvy investors knew how to take advantage of this investment strategy. “Master Limited Partnerships” are the companies that issue these checks. The majority of MLPs are related to the oil and gas industry and must generate ninety percent of their revenue from operations related to domestic natural resources.
MLPs can be extremely profitable investments because the tax code allows these companies to operate without paying federal income taxes. These companies must distribute ninety percent of their revenues to their shareholders to retain the status of being an MLP. This means these companies distribute more to their shareholders than regular dividend-paying companies. Not only do shareholders receive high distributions, but they don’t have to pay taxes on the “Freedom Checks” they receive. They only must pay a capital gains tax when they sell the shares of the MLP.
Investors worried about an income stream in retirement may wish to consider investing in MLPs. All an investor needs are a brokerage account and they can purchase shares in one of over five hundred companies that meet the criteria. Depending on the initial investment, an investor may receive more than they could through social security and these payments are either quarterly or monthly. An individual can only receive so much through social security, so “Freedom Checks” may be a great way to supplement a retirement income.