The Discovery of Freedom Checks
Matt Badiali ran across Freedom Checks while he was working under a well known financial expert. He was helping on a project that allowed him to travel world, meeting with CEOs of mining and oil companies. He met with them to stay up to speed on technologies findings and trends. While Matt was working on this project he was presenting his findings of possibilities to make profitable investments in natural resources. During his meeting with several CEOs he found master limited partnerships, or MLPs.
Freedom Checks as an Investment
Freedom checks are payments received from buying shares in a master limited partnership. They are issued on a monthly or quarterly basis from MLPs to the investors which is a schedule very close to traditional stock dividends. Statute 26-F is the law that made Freedom Checks possible.
Companies can Operate Tax-Free
According to Statute 26-F companies can operate tax-fee if they become a designated agency. These companies are required to generate 90% of its profits from manufacturing and transporting natural resources. They must also pay out the majority of their profits to all shareholders. These payments are what Matt calls freedom checks.
The distributions paid out to investors are considered return of capital instead of income and that’s why investors don’t have to pay income taxes on them. If an investor decides to sell their MLP investment, profits from the sale are taxed at the lower capital gains rate. Read this article at Money Morning.
Master Limited Partnerships (MLPs)
Master Limited Partnerships are an exclusive group of 568 companies that are able to issue freedom checks. These companies primary function deals with oil and gas. They research for new wells and transport those resources as well.
Matt Badiali’s recommended Freedom Check Providers
Matt recommends SunCoke Energy Partners (SXCP), San Juan Basin Royalty Trust (SJT) and Franco-Nevada (FNV). All three of these companies provide a large amount of freedom checks to their investors.
Matt Badiali’s method to picking a Freedom Check Provider
The first thing Matt does to narrow down providers is look at their assets. He feels the company should have $1 billion or more in-demand assets. We are looking for natural resources, or rare earth minerals that are in high demand. Possible resources could be oil, natural gas, gold, silver or rare earth minerals. The second thing Matt looks for is a company that has been paying consistent or increasing payments. The third thing Matt will pay attention to is is the company has a proven history of making investors rich. Lastly, Matt looks over the company financials. He pays attention to debt, cash flows and other financial information. Matt follows all these procedures before he makes an investment.