The Recent Money Grab of Freedom Checks
Freedom Checks are by far not a government-sponsored program like Medicaid, 401(k), or Social Security. They are a legitimate form of investment that was passed by Congress in 1987 and presently, more than 500 companies issue them. According to Matt Badiali, Freedom Checks can be up to four times bigger than Social Security payouts and they don’t have restrictions like those seen in federal programs. More so, the Statute 26-F permits companies that issue these checks to operate tax-free if they meet the following criteria; generate 90% of their income oil and gas within the US which includes production, processing, and transportation. Secondly, these companies must pay these lucrative freedom checks to shareholders considering that many draw six-figure salaries per annum. Read this article at Money Morning.
The elite group of companies that qualify to issue checks is referred to as Master Limited Partnerships (MLPs). These companies are mandated by law to pay out 90% of their income to investors and these payments are what is popularly known as freedom checks. Since these checks are calculated as return capital as opposed to income, their recipients are not obliged to pay taxes on them. Matt Badiali notes that checks are quite lucrative as their recipients can between $10,000 and $50,000 per month. These are mind-blowing figures that can tempt anyone to buy shares from MLP companies. Fortunately, the exclusivity of MLP companies doesn’t hinder regular people from getting a piece of the pie; buying these shares is as simple as buying shares from other companies like Apple Inc.
Banyan Hill likens checks to “winning the lottery” and Seeking Alpha declares them as a “hidden gem” of investments boosting the financial capacities of regular folks across the US. However, Tim of Affiliate Unguru warns that these testimonials don’t use real-life cases. The supposed photos of recipients are normally stock photos which make the idea of checks seem like a scam. Nonetheless, Tim declares that this investment is not a scam but people shouldn’t expect a cheque by merely signing up. The premise behind these cheques is that MLPs prefer to share profits with investors rather than paying government taxes. However, getting a piece of the yields correlates to performance which leads Badiali to recommend just five out of the 568 MLPs.
Ultimately, the internet is rife with a myriad of financial scams but Checks is not one of them. Potential investors need to determine how much money they want to sink in as this directly corresponds with what they yield from their chosen MLP. Learn more: https://dailyreckoning.com/freedom-checks-exposed/