When financial advisor Matt Badiali began informing the world about “Freedom Checks” and the potential gains investors could earn, the financial outlets immediately blew him off. Mr. Badiali was promising that investors could earn a tax-free payout from companies that were not required to pay federal income taxes. His claims seemed incredibly absurd, however, it was later proven that Matt Badiali was promoting an investment technique used for several decades that most average investors were completely unaware of. Stockbrokers with many years in the business had never even heard of “Freedom Checks”, so it was no surprise for the immediate skepticism and denial from the public. The sad thing is that even though this investment opportunity has now been proven to be legitimate, most of the people who have heard about it will never take advantage of this great investment option.
“Master Limited Partnerships” are the special companies that ate allowed to issue “Freedom Checks” to their shareholders. The Congress passed legislation in 1987 that would enable these companies to operate in a tax-free manner if the company paid most of their profits to the shareholders. The company must also be involved in domestic natural resources operations. MLPs can pass along tax benefits to their shareholders. The distributions paid to shareholders are completely tax-free. This attribute makes investing in MLPs one of the most lucrative investment options out there. This quality makes it far superior to normal dividend investing, where the investor must eventually pay taxes on the dividends they receive. Until recently, only the truly sophisticated investors were aware of the benefits of investing in MLPs. To know more about the company click here.
Investors anxious to start receiving their “Freedom Checks’ do not need to do anything complicated or jump through any loopholes. Anyone familiar with buying or selling any common stock can start investing in MLPs. All one needs is a brokerage account and a small starting sum of cash to begin. There are hundreds of MLPs that trade on the major stock exchanges. There are some MLPs that trade for as little as ten dollars, which is great for individuals who are just beginning their investment lifestyle.