Freedom checks are new forms of investments that seek to reduce the impacts of taxations and equally ensure that investors receive most of their earnings. The investment concept was introduced by Matt Badiali; a geologist turned entrepreneur. During his geology career, he interacted with many individuals in oil and energy companies. The interactions provided an ideal platform to learn some investment concepts in energy stocks. Matt Badiali made a financial breakthrough after buying energy stocks in 2008 and reselling them in 2010. Despite the 2008 economic turmoil, he was of the view that the investments would offer huge returns. After selling the stocks, he made more than 4400% profit thus putting him on the global map.
The entrepreneur is of the idea that adopting a similar strategy would lead to financial success among other people. Freedom Checks takes advantages of the provisions of master limited partnerships that enjoy the benefits of a partnership and public company. MLPs are primarily restricted to energy and real estate companies. There were introduced with the intention of offering constant capital flow. MLPs provide the resources required to run the operations successfully. They can further be regarded as being a closely guarded secret. The levels of risks in MLPs are lower as compared to other investments. MLPs record slow but consistent growth which would lead to an increase in the price of the stocks. They also benefit from long-term contracts.
The Functioning of Freedom Checks
An investor can claim freedom checks from an investment broker or financial institutions. The process is similar to other investments. The method of claiming the gains is also easy. The consistent improvements in the operations of MLPs imply that the selling price of the units would exceed the buying price. Unlike other gains, MLPs gains are only taxed during the sale of the shares. MLPs are further required to distribute more than 90% of the total revenues to the investors. It implies that adopting the strategy recommended by Matt Badiali may lead to financial success. Nonetheless, the investor argues that not all corporations can offer a guarantee on the invested capitals. Through focusing on the available raw materials, he makes a recommendation on the idea MLPs.