Most individuals invest in the traditional mutual funds that are offered through their 401 (k) retirement accounts. With all the demands and responsibilities in our hectic lives, it is hard for individuals to spot the “gem” that could help the “average joe” achieve financial freedom. A recent phenomenon being broadcasted in the financial news are “Freedom Checks”. Upon first being aired, numerous individuals who first heard of these freedom checks thought this was another pyramid scheme or a way to steal money from the individual who does not have the time to research the particular investment. Many websites have dismissed these “Freedom Checks” because they don’t understand how these investments work and the idea of receiving a consistent check other than a dividend payment seems absurd.
Matt Badiali, a financial advisor who has been advertising “Freedom Checks” as an investment is endorsing Master Limited Partnerships. This is a company with multiple tax advantages and the company’s profits are only taxed once they are rewarded to the stakeholders. These companies experience greater cash flow due to allocating its resources to the shareholders. Capital costs tend to be lower for companies that are capital intensive. Many of these companies are in the energy space. MLPs have been around since 1981, although they had fewer regulations in the past. There are over five-hundred companies that can disburse these payments to investors. The regulations to issue these funds to investors are the company must receive ninety percent of its revenue from specific industries and the companies must approve to pay its investors
Many persons and websites had compared the ads featuring these investments to a government program. “Freedom Checks” can be substantially greater than a persons monthly social security check. These payments are not subjected to be taxed and so the rate of return for the investor ends up being substantially greater. Freedom Checks MLP investments can be purchased through a regular brokerage account and you can get the check deposited there. So before jumping to the conclusion as a scam, it may be worth doing your due diligence and seeing if these investments have a spot in your portfolio.
Freedom Checks: Youtube