Freedom Checks have been the talk on many forums since Matt Badiali was first spotted flaunting a fat check worth over $114, 287. The check looked similar to the treasury check issued by the USA government. The ad was meant to hoodwink you. It was meant to create an impression that it is easy to access money. If you took a little more time to read the details of the post, you would view the checks from a more realistic window.
The checks, as advertised in the spiel by Matt Badiali, are a different form of investment from what was posted sometime last year in the name of Patriot Checks. The checks have already been hyped by some of the major newsprint media including Forbes and Barrons. Indeed others such as Seeking Alpha refer to Freedom Checks as hidden gems. In a nutshell, the checks are being endorsed by some respectable financial industry players as something worth trying out. However, it should be remembered that they are treated as an investment. So, beware! Investments come with a risk profile too.
Notice that the checks are not government payouts. This is a program that gives a green light to about 600 companies to access the cash is tax rebate form.The public should not treat these checks as though they are of a government program such as 401(k) or anything like that. In truth, the stakes of the program are such that it is a privately initiated program. It offers better returns than the government programs and has no age limit for those interested.
The said checks originate from Master Limited Partnerships. They come with their unique structure for tax. Master Limited Partnerships have helped America to become freer. They channel 90% of their returns to investors. They give higher returns and thus promote the concept of freedom with finances. It has been estimated that from the 568 companies eligible for Freedom Checks, there is an expected payout of about $3.6 billion in the forthcoming year. MLPs are fundamental drivers of America’s independence in the energy sector.
Qualification for MLP
For a company to be considered for MLP and thus qualify for the Freedom Checks, it must direct, or must have directed 90% of its income to natural resource exploration and transportation; especially oil and gas exploration.
An MLP refers to a company that exists as a limited partnership that is publicly traded. MLPs benefit from the rule that exempts them from being taxed unless the profits of the company are credited directly to the investors. Two classes of MLPs exist, i.e. Limited Partnerships and General Partnerships.