Answers to Basic Freedom Checks Questions
Matt Badiali’s freedom checks left many questions unanswered when they debuted. Savvy investors quickly got past the hype and discovered the legit investment underneath. Many others shied away as the offer smelt to much of scam. Here are some concrete answer to basic freedom checks questions.
What are They?
Freedom Checks are investments in MLP stakes. These stakes function just like stocks and come from business called Master Limited Partnerships. They award buyers a percentage of the company’s profit. Like stocks this percentage is directly related to the amount of stakes owned. It is also dependent on the success of the company itself.
What are MLPs?
Master Limited Partnerships are business classifications that privately-owned companies used to operate like publicly-traded partnerships. MLPs offer stakes to investors who provide working capital through their purchase. This capital is then paid back to the investors over the course of the year. The extra money from the capital allows the business to expand and grow. This growth leads to higher profits which create higher returns.
What are Freedom Checks?
Freedom checks are essentially return of capital payments. They are paid out in monthly to quarterly installments by the company. Stateside MLPs take advantage of a unique tax break, so these payments must be dealt out before taxes are taken. Investors are awarded payouts based on the number of stakes they own and the success of the business.
What is the Billion-dollar payout Badiali Talks About?
Stateside MLPs take advantage of a tax break afforded by the government in recognition of their service. This reward is in exchange for U.S. energy independency. It is offered under a tax statue known as 26-F. MLPs have to dispense with most of their profit to take advantage of it. As over 500 companies operate as MLPs this means a huge pool of money will be paid out to investors. As U.S. natural gas and oil is currently gaining prominence this sum will get even larger. According to Badiali’s projections it will be in the billions. MLP investors will nab a piece of that large pie with their stakes.