How the Freedom Checks Really Work
There has been a lot of confusion lately about the so called freedom checks that were being promoted by Matt Badiali of Banyan Hill Publishing. The main reason for the confusion is that people just do not understand how they work, what they are really about, and so on. So, here is a little introduction to the checks so that you can understand them thoroughly.
The freedom checks are being put out by companies that are called MLPs, which is short for Master Limited Partnerships. These are companies that must get ninety percent of their revenue from natural gas or fuel sources. They are involved in the production, processing, mining, and other parts of the natural gas industry. Read this article at Money Morning.
Although Matt Badiali likes to call these checks US Freedom Checks, do not be fooled. They are not coming from the government. Matt Badiali never said that he was a big supporter of big government programs, and there is no reason to expect him to suddenly be promoting them. So, what are these checks? What are they made out of?
These checks are paid out every single year by the Master Limited Partnership companies. They pay the shareholders a large percentage of their profits. The interesting part about all of this is that the government considers the checks that you get from these companies to be a return of capital. This means that they are not subject to income tax. In turn, this means that your returns are a lot faster with these freedom checks than if you would invest your money in regular stocks.
So, you should definitely check out Matt Badiali, his newsletter, and the freedom checks that he recommends. You will be pleased with the results. People have been using these checks for decades to earn a nice return.