The Basics of Freedom Checks Covered
Matt Badiali’s Freedom Checks are still available to savvy investors, but if you have questions you are not alone. Despite offering higher than normal returns, Badiali never really explained how Freedom Checks work. The main thing to know is that it is a legitimate investment opportunity.
Freedom Checks are Investments in Master Limited Partnerships
A Master Limited Partnership is a business venture that operates like a publicly traded entity. The only difference is it remains a privately-held business. MLPs sell two different types of stakes: limited partnership stakes and general partnership stakes. Stakes function exactly like stocks. They garner investors a percentage of the company. In the case of limited partnerships, however, these stakes carry no controlling interest. The controlling interest is only available in general partnership stakes, but these stakes are never sold to the public. Investors who purchase stakes supply the company with capital, and in turn, the company returns their investment with a percentage of profits. MLP investments are known for generating higher investment return than normal returns. A freedom Check is simply a return of capital payment.
Why They Are Important?
The U.S. Government uses MLPs to bolster its energy independence. It does this by creating an incentive in the form of a generous tax benefit. Under Statute F, MLP companies that deal 90% of their business in natural resources qualify for a significant tax break. All they have to do is payout most of their profits to stakeholders before taxes, and the government will tax them on the measly amount left over. As the companies retain general partnerships the money funnels back into the natural resource business. Limited partnerships get the rest, and because the companies have to dispense around 90% of their revenue, those returns are sizable.
How Freedom Checks Work
Signing up for Freedom Checks is an investment in Badiali financial newsletter. He tells investors what MLP companies to purchase stakes from. Once the stakes are purchased investors can sit back and rake in the returns. Stakes can be bought as low as ten dollars and are available to any age group. They payout in monthly to quarterly installments.