Geologist Matt Badiali specializes in bringing information about investments in natural resource extraction. Armed with a master’s degree in Earth Sciences, he set about on evaluating the companies he was interested in investing in by paying in-person visits. When he saw that his training as a scientist gave him the ability to analyze the natural resource markets, he decided to help others identify suitable investments.
Matt Badiali has just posted an article on Freedom Checks, which are distributions from Master Limited Partnerships. An MLP is basically a limited partnership which is publicly traded, and the majority of MLPs are in the energy industry. Because MLPs do not pay income tax, in 1987 Congress limited this form of legal organization to the real estate and energy industries. Income from MLPs are said to “pass through” to the owners of the “units,” as shares of MLPs are officially designated.
Because Freedom Checks are not well-known, as Matt Badiali points out, some investors are uncomfortable with these investments. According to Badiali, the reason that MLPs are such attractive investments is that they are required to pay out 90% of their profits. In turn, the tax advantage enjoyed my MLPs leads to a higher yield on these profits.
To be sure, MLPs are not without risks. Even though MLPs may seem to be less risky than other securities, loss of capital is still a possibility. However, there is a myth that large amounts of capital are necessary to start investing or trading MLPs. On the contrary, with some MLPs it may be possible to get started with as little as $10.
Despite having a similar name, Freedom Checks have nothing to do with Patriot Checks. Although Freedom Checks have been portrayed by some as “free money,” the reality is that these payments are returns from legitimate investments. As with any investment, potential investors should do their due diligence and only invest capital they can afford to lose.
Freedom Checks: Youtube