With the approval of the tax plan, US companies and individuals now anticipate receipt of funds from the pool of 34.6 billion dollars that is to be released in the next month. One of these is Mike Reed who is set to receive the top payout of $ 160,923. All this is thanks to an uncomplicated investment programme known as freedom checks, in which the payout depends on the sum invested.
Matt Badiali introduced freedom checks in a video explaining that all people, no matter their income, bank account balance or age, can reap from checks. To be able to participate in this scheme, 90% of the company’s earnings must be associated with natural resources (production, processing…). It must also distribute dividends in freedom checks, and anyone can become a stockholder with as little as $10.
The strategy Matt introduces is called Master Limited Partnership, which is a business partnership that is publicly traded, giving it tax benefits and cash flow similar to a public company. Most MLP’s are in the natural resources field. Companies that meet Statute 26-F are allowed to operate as tax-free entities, can distribute the checks at the time they want and are required to remit 90% of revenue to stakeholders.
Due to the fracking boom, US companies have increased their oil and gas production and at the same time import from the Middle East has reduced. Matt expects the companies to obtain great profits hence his belief investors will receive large payments in the form of freedom checks. Investing in this strategy requires buying shares in an MLP. These shares and also the payout amount goes up with time and receiving your check is easy as it is either mailed to you or deposited in your account. All Your ‘Freedom Checks’ Questions Answered.
These investments are untaxed, and one can sell at the capital gain rate. Presently around five hundred companies are eligible to be considered MLP’s.