Investors have been hearing quite a bit about Freedom Checks this year. Although they were created by legislation back in 1987 most expert investors had never heard of them before Matt Badiali of Banyan Hill Publishing spread the news about them. Before he came up with the term of Checks they were called Master Limited Partnerships but he thought they needed a more punched up name than that.MLPs were created by the U.S. Congress because America was far too dependent on foreign oil, especially from the volatile Middle East. They wanted to encourage production inside the United States and regarded this as a national security issue.
Businesses in the oil and gas industry can now become an MLP and issue Freedom Checks as long as they operate in a certain invest way and pass on all of their profits to their investors.In particular, over 90 percent of their revenue has to come from the production, transportation, refining, and storage of American oil and gas.If they meet this requirement they can organize as an MLP. As all of the profits are passed on to shareholders they can earn huge sums of money. Some investors are earning $124,000 annually while others are getting as much as $643,000 a year. You can invest in Checks inside of an online brokerage account.
The oil and gas company organized as an MLP sends quarterly or monthly dividends that are deposited into the cash portion of your account. You can then reinvest this money or transfer it to your bank or credit union.Matt Badiali revealed that there are presently 568 firms that can issue one of these Freedom Checks to their shareholders. They operate in the United State’s major oil reserve areas such as the Bakken Shale, Marcellus Shale, and Permian Basin. The oil and gas is then transported to American refineries where it is processed and distributed.Another thing that makes this a great investment opportunity is that the dividends are treated not as income but instead as a return of capital. What difference does that make? Well, you don’t have to pay federal income tax on them which is a huge business benefit.