Matt Badiali, a financial advisor with an extensive background in geology. Is the man who helped familiarize the financial community about “Freedom Checks” and the potential gains investors could make from them. Badiali has said that people of any age or income level can begin receiving these checks and a modest sum of ten dollars can get anyone started in this great investment opportunity. To receive these payouts, ninety percent of a company’s revenue must be related to storing, processing and producing natural resources. The company is also required to pay stakeholders these “Freedom Checks”.
“Freedom Checks” are a catchy name, but what Matt Badiali is really promoting as an investment opportunity are “Master Limited Partnerships”. These are limited partnerships that are traded on stock exchanges like other publicly traded corporations, however, they have tax advantages of partnerships but enjoy the cash flow enjoyed by companies that are public.
The United States has reduced the amount of imported oil from the Middle East. US oil companies are producing more oil domestically because of fracking. Matt Badiali is anticipating that many of these companies will see higher profits for many years to come and believes that $34.6 billion in “Freedom Checks” will be distributed this year to shareholders.
While many investors are unfamiliar with MLPs, it is easy for anyone to get involved in MLPs. Anyone with a brokerage account can buy shares of an MLP the same way they would purchase shares in other publicly traded companies. Investors then receive the Freedom Checks in the mail or have the funds deposited directly into their account. The investor can either spend the funds or reinvest them, as well as see the share price of the MLP increase over time. Investors don’t pay taxes on the distributions, and when they sell their shares they only pay the capital gains tax. There are over five hundred companies that fit all the criteria to be considered MLPs.