Founded by financial analyst Matt Badiali, freedom checks are a lucrative investment option for a wide range of investors. They provide an easy investment opportunity for not only the savvy and experienced investor but for the inexperienced or DIY investor as well.
Freedom checks have been misconstrued by many as a scam or too good to be true due to the way they have been marketed or by a lack of understanding about the way they work. However, they are a legitimate and profitable investment. For as little as $10 anyone can become a stakeholder and begin to receive their share of the company’s profits.
Contrary to popular belief, freedom checks are not related to the government. However, in order for a company to participate in the program at least 90 percent of its revenue has to come from the storage, processing, production or transportation of natural resources in America. This would primarily be oil or gas. Also, the company has to agree to pay out the revenue to investors on an annual basis in the form of freedom checks. Investors can receive their money in the form of a paper check or it can be directly deposited into their brokerage accounts.
Benefits of investing in freedom checks not only include the potential financial gain for the investor, but because of Statue F-26 companies that meet the requirements are allowed to operate as tax-free entities and can distribute pay outs to stakeholders whenever they like. Now that the new tax law has passed, which means bigger profits for companies and in turn investors, Bidiali predicts that companies will be sending checks to shareholders on a monthly or quarterly basis.
The overall concept is that the investor is purchasing shares in a Master Limited Partnership or MLP. These partnerships are publicly traded which allows them to not be taxed until their investors are paid. In turn, investors are not required to pay taxes on investments unless they sell their shares and then they will be taxed at the lower capital gains tax rate. It really is simple.