When Matt Badiali, a Banyan Hill Publishing Senior Editor, announced he was introducing Freedom Checks, many investors raised questions. Some claimed that Badiali, leave alone the checks, was a scam. After these concerns, Badiali chose to do an informative video on the topic, but strategically skipping essential concepts behind these checks. This created a vacuum of knowledge, which he claims one can fill by signing up for his newsletter: Real Wealth Strategist. Whether you have signed up for the newsletter or want more information, this article seeks to address these concerns.
First, the idea behind Freedom Checks is anchored in the US laws. In 1987, at the time when the US was encouraging investment in natural resources, the Congress enacted legislation exempting taxation to firms getting a minimum of 90% revenue from natural resources. Such companies would be in the transport, processing, production, or storage sectors of natural resources. Besides, this regulation is present in Statute 26-F and legally accepted in US states.
After the enactment of the legislation, thousands of companies made lots of profits, and some of them expanded into global corporations. While introducing the Freedom Checks, Badiali utilized this knowledge and the fact that many companies licensed under Statute 26-F are willing to give out free cash for little investments. Most of these firms fall in the oil sector, and Matt (being a geologist with the understanding of natural resources such as oil and gas) surely knows which firms to partner with for the checks’ issuance.
Another misconception about these checks is that the government runs them. The truth is, even though the government can issue subsidies, investors get the free checks from Master Limited Partnership Firms. MLPs have a unique tax structure, and they fuel America’s energy sector. Since they are legally allowed to give 90% of their revenue to investors, the companies are critical in a financially free America.
The last concept, which investors should consider, is the low-risk benefit of MLP investing. This allows investors to enjoy stable incomes from long-term deals. For instance, firms with transportation contracts in the oil industry can raise or lower their prices to keep check of inflation and fluctuation of prices. Generally, getting Freedom Checks would mean you are investing in MLPs.