Lots of speculation has been made about Freedom Checks. Financial publisher @moneymorning's investment analysts stepped in for a closer look.#FreedomChecks #MoneyMorning #BanyanHill #MasterLimitedPartnershipshttps://t.co/PzgNatM9RU
— Matt Badiali (@Matt_B_Guru) March 9, 2018
If you’re well-versed in the world of investments, you’re probably already familiar with dividends and capital gains, but there is a new way to make your money work for you, especially when it comes to natural resources. If you’re not familiar with “freedom checks” they are part and parcel of an investment model predicated on statute 26-F, enacted by Congress in 1987. Freedom checks are issued by companies who meet government eligibility requirements necessary to make these payouts. Who are these companies? Well, they are companies operating primarily in the oil and gas industry and who, collectively, make up the Master Limited Partnerships program, which currently encompasses more than 560 different companies.
How do freedom checks work? Well, unlike traditional dividend checks, which are defined as payments made to shareholders from corporations, freedom checks are taxed differently. These checks are taxed as capital as opposed to income; as a result, investors do not pay income tax normally associated with dividend checks. The primary requirement for companies that issue freedom checks is that they pay out a minimum of 90% of their generated income to their investors. The rate of return for those who opt to invest in Master Limited Partnership companies far exceeds that of traditional investment products like CDs, money market accounts, and corporate junk bonds. For example, an investor who chooses to invest $1,000-dollars in an MLP company can, in 20 years, make almost $150,000-dollars.
A huge proponent of freedom checks is Matt Badiali, an investment expert and the Founder of Real Wealth Strategist, a Bayan Hill Publishing financial newsletter. According to an article in dailyreckoning.com, an online resource for insights on the economy and global market analysis, Matt Badiali discovered this unique investment tool while looking for ways to generate capital that could be used to fund the exploration of new oil and gas pipelines. MLPs, as well as statue 26-F, represented a win-win for the corporations and the investors alike.
If you’re not familiar with Matt Badiali’s background, he is a Penn State University alumnus, who earned a B.S. in Geological and Earth Sciences, in 1992. From there, Badiali went on to attend Florida Atlantic University, where he earned his Masters degree in Geology and Earth Science. In an effort to broaden his knowledge in these fields, he enrolled in the University of North Carolina at Chapel Hill, with the intentions of earning a Ph.D. in Sedimentary Geology. Unfortunately, he was unable to complete his education at the University due to family reasons. Ultimately, Matt Badiali became a Geology professor at the University of Carolina, where he remained until he hired by a financial expert who needed his expertise in the geology. This opportunity completely changed the trajectory of Matt Badiali’s career, making him a natural resource investment expert, and later, the Founder of a financial newsletter, Real Wealth Strategist. You can learn more about Matt Badiali by visiting: https://mattbadialiguru.com/