Freedom Checks Demystified

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.

Learn more: http://creditorweekly.com/index.php/2018/07/02/curious-about-matt-badialis-freedom-checks/

 

How Freedom Checks Work

Freedom checks are an opportunity to own a piece of a flourishing business while receiving consistent distributions of the profit. Owners of freedom checks receive distributions monthly, quarterly or semi-annually. These distributions are sent out to Master Limited Partnerships. These are stock owners of 568 companies.

568 companies are master limited partnerships that a publicly traded. To qualify as a 568 company, the business has to meet several qualifications listed in Statute 26-F. Statute 26-F states that generate 90% of their total revenue from oil and gas along with the production, processing, transportation and storage of those elements. And, the company must agree to pay out all those earnings in distributions. Read more about Freedom Checks at banyanhill.com.

568 companies adhering to Statute F-26 can issue freedom checks to those who own stock or master limited partnerships. The distributions are considered return of capital, not income. If you sell your MLP, you must pay taxes on any profit gained from the sale. Your taxes would be at the lower capital gains rate, not at the same rate that personal income is taxed.

It is very simple to buy shares of MLP’s, just as easy as buying any publicly traded stock. The distributions are received in the form of a check in the mail or sent directly to your brokerage account. Freedom checks tend to pay two to three times what other conservative investments pay.

Compared to Certificates of Deposits (CDs) and money market accounts pay a paltry interest that’s as little as 1.5% in some institutions. For the same amount of risk, you could own an MLP and gain a far greater return. Depending on how much you invest, your return could be quite sizable. Someone who invests $1,000 in 20 years could receive $149,300 with a freedom check while the CD owner would receive $1,320.

They simple can’t compare. The freedom check far surpasses the performance of other conservative investments making it a good option to add to a retirement portfolio. It is even an ideal short term investment. Unlike retirement distributions, you can receive your MLP distribution at any age with the same tax responsibilities. Unlike Social Security, a 401(k) or an IRA, which can only be received tax free under certain circumstances, your MLP distributions will always be taxed as capital gains, not income. There are very few people who don’t need more money. With freedom checks, you can get a larger return on your investment and the cost to do that is quite reasonable and well worth it. Visit: https://kennedyaccounts.com/about-freedom-checks/