Freedom Checks have been up and running thanks to the Statute 26-F federal law. Investors receive periodic checks from a good number of energy firms which have embraced the new development. Contrary to popular belief, the whole concept has nothing to do with the federal government.
The natural gas and oil industries have experienced a steady rise in master limited partnerships. The firms are involved in oil processing from drilling wells to refining the oil. Investors in the MLPs are the greatest beneficiaries of the tax exemptions accorded to the firms. They get to receive 90% of what the firms make as revenue. These payments are what make up the Freedom Checks.
This new form of payment is similar to what traditional securities referred to as dividends. They were established to encourage investments in the energy sector. This would in turn encourage the production of energy in the US. The idea originated from President Nixon who wished to consolidate the independence of the US. MLPs and their investors are exempted from the federal income tax. Taxes on their capital gain on the other hand is negligible. Read more about Freedom Checks at banyanhill.com.
The real estate investment trusts have also made use of the Freedom Checks. The shares are available at $50 or $100 depending on what one wishes to achieve in the long haul. Matt Badiali, a natural resource expert, has been following the unfolding of this new phenomenon. He shares insight on what options would yield the best results.
He has had a feel of what goes on in the field thanks to his academic background in earth science. This has placed him in a good position to know what would work and what would cause unnecessary trouble. Over the years he has earned a reputation as a leading investment strategists. He has taken unpopular decisions that worked wonders and people have respected him for this.
Freedom Checks, like any other investment opportunity, should still be approached with a lot of caution. The capital gains are lucrative but this is no excuse for not doing your own homework. Thanks to people like Matt Badiali, what was a reserve for a few top investors has now been made public. With Freedom Checks you get to kill two birds with one stone. Dependence on foreign energy sources is reduced while investment portfolios are expanded.