What are Freedom Checks? Plenty of people have been asking this question over the last couple of months. Ever since Matt Badiali came out in that — now famous — viral video spouting off about Freedom Checks, the question has come up quite a few times. Well today, we are going to try to answer that question. The answer may surprise you.
First of all, let’s get rid of the name Freedom Checks for a second. Freedom Checks are simply Master Limited Partnerships coined under a fancy name. MLPs are companies that are set up under statute 26-F that are tax-free companies. How are they able to operate tax-free? Well, MLPs must pay back 90% of their profits to investors. This means that MLPs pay out massive checks in the mail every month, similar to stocks. Of course, the difference isn’t only for companies, individuals also get tax-breaks on MLPs. MLPs are capital driven not income driven so they are a lower tax bracket than the latter. Read more at Agora News about Freedom Checks.
How do you purchase an MLP? Pretty much the same way you purchase a stock. It operates almost identically other than the differences in taxation. You can use your online brokerage to purchase MLPs, same as stock.
So why is Matt Badiali wanting us to purchase MLPs? Well, first of all, MLPs aren’t a commonly known stock option. In Wall Street firms, sure, but to the individual, not so much. MLPs offer far better return than CDs and typically beat out 401(k) and Roth IRA benefits as well.
The reason that Badiali is calling them Freedom Checks is because of his prediction on the oil industry. Badiali thinks that reliance on foreign oil is decreasing and with advanced fracking methods, the domestic oil industry is going to explode. Whether or not this is true is up to you to decide.
In the past, however, Badiali has gotten a ton of calls correct. There is a reason that over 100,000 people subscribe to his Profits Unlimited Newsletter, and it’s not the $97/year fee. Investors who are picking Badiali’s picks are walking out with gains. As far as this specific investment goes, it may be a goldmine it may not. If I had to put my money on anyone though, it would be Badiali. View: http://www.metropolismag.com/uncategorized/freedom-check/