There are several individuals who invested in Freedom Checks. They are very happy they did so. These individuals collected payments that were significantly larger than what they would receive from social security. Matt Badiali is the man to thank for spreading the word about Master Limited Partnerships. These are the companies that pay Freedom Checks to their shareholders. This was a particularly good year to invest in MLPs, as the companies paid out a total of $34.6 billion to loyal shareholders. This investment strategy has been overlooked by most of the investing community for so many years and was only used by sophisticated investors.
Now average individuals are aware of the existence of MLPs and can also profit from them. One of the most important reasons for investing in an MLP is the tax treatment you will receive as an investor. MLPs are companies that can avoid paying taxes as part of the US tax code. This same benefit is shared with a company shareholder. Freedom Checks that a shareholder receives are not taxed. A shareholder is only subject to taxation for selling MLP shares at a profit. This tax is still lower than regular income taxes. MLPs may also rise significantly in share price. The US produces more oil than it did in the past and is now recognized as a leading oil producer.
The US imports a lot less oil from the Middle East. As long as domestic oil production continues to increase, MLPs should remain profitable companies. Oil prices should continue o rise as demand rises, which will eventually lead to MLPs trading at higher valuations. Individuals familiar with stock trading will find it easy to invest in MLPs because they trade in the same manner as any common stock. There are no financial restrictions to begin investing. Someone with modest means and a financial account can start collecting Freedom Checks with several dollars. There are over 500 companies that are classified as MLPs and are allowed to issue these special payments to shareholders. Even MLPs involve risk, so it is important for an individual to use proper analysis to pick the appropriate MLP for the financial portfolio.