Although Master Limited Partnerships (MLPs) have been around for a few decades most people haven’t been aware of them. This changed early on in 2018 when Matt Badiali of Banyan Hill Publishing released a YouTube video about them, dubbing them “Freedom Checks” because they are a great way to attain financial freedom. Some people thought these were a scam but the truth is that they are real and can offer great returns as long as you go about it the right way.
Freedom Checks require an initial investment. MLPs can be established by organizations following the Internal Revenue Code title 26, subtitle F. Once they are set up people can invest in the MLP the same way that they would invest in the stock of a publically traded firm. There are a number of advantages to investing in MLPs, particularly when it comes to taxes. Read this article at Affiliate Dork.
An MLP must pay out 90 percent of its profits to the people who have invested in them. Additionally, Freedom Checks returns are not subject to traditional income tax laws. This allows investors in them to attain even higher returns. MLP investors only pay taxes when they sell their shares and don’t pay taxes on their capital gains. Even when paying taxes when selling shares it is subject to a lower rate than income tax is.
Freedom Checks pay out the same way as bonds pay interest and stocks pay dividends. They pay out either quarterly or annually and the money goes into the cash account attached to an investment account. In rare cases, some MLPs send out physical checks to investors but this is becoming less common as times goes on.
Like any investment, there is an element of risk involved. However, they are no more risky than stocks are and show similar trends over time. Investing in anything is a calculated risk but Freedom Checks no more so than other investments and the potential returns are higher. As long as you approach investing in these in a rational manner the potential returns could be among the best that an investor has earned.