Matt Badiali, a respected investment expert, caused quite a stir recently with the release of a video entitled “Freedom Checks.” The video did not take long to go viral but left many that watched it confused at the exact nature of the investments described by Badiali.
What Matt does make clear in the video is that freedom checks are not a type of government entitlement program or a 401 K or similar type of retirement plan.
Matt declares boldly that freedom checks are actually better than any of those things.
What Exactly Are Freedom Checks
Despite a name that would suggest something different, freedom checks are a legitimate issuance enacted by the United States Congress in 1987. As of present, there are 568 companies that meet all requirements of Statute 26-F which makes it lawful for them to issue freedom checks.
Matt Badiali learned about these ‘mysterious’ investments while working for a leading investor that would lead him to travel the globe. During these travels, Badiali met with CEOs of major oil and mining companies which allowed him to stay ahead of the curve in regards to the latest trends, technologies, and discoveries.
It was at this time that Badiali made the discovery of ‘master limited partnerships’, also known as MLPs, who are the 568 companies mentioned above that can legally issue freedom checks.
The primary operations of these companies are the production and processing of oil and gas and are required to pay a minimum of 90% of incoming revenue to its investors. These are the freedom checks that Badiali speaks about in his famous video. These payments are made quarterly and are processed similarly to traditional dividends made on stock investments.
An added perk is that since these payments are treated for tax purposes as a return of capital rather than earned income there is no need to pay income taxes on this money. Even once deciding to sell off an MLP investment, the profit is taxed at the lower capital gains rate and not as personal income which is taxed at a much higher rate.
The purchase of MLP shares are no more complicated than other stocks and payments are received either by mailed check or deposits to the brokerage account used to facilitate the trade. View ideamensch.com for more info.
Lots of speculation has been made about Freedom Checks. Financial publisher @moneymorning‘s investment analysts stepped in for a closer look.#FreedomChecks #MoneyMorning #BanyanHill #MasterLimitedPartnershipshttps://t.co/PzgNatM9RU
— Matt Badiali (@Matt_B_Guru) March 9, 2018
About Matt Badiali
Matt Badiali produces the S&A Resource Report, a publication that published monthly offering investment advice in the oil, mining, and energy sectors. Matt attended Florida Atlantic University where he earned a Master’s degree in Geology. He is currently in pursuit of a Ph.D. I the same discipline. See more: https://medium.com/@MattBadiali/fraud-ec6eecc6ce1b