Matt Badiali is an investment guru, who publicized a video that went viral about “freedom checks,” and many are unsure what the exact nature of the said investment is.
The video, which caught the attention of Americans, Matt stated that the “freedom checks” are not the typical financial investment plans such as the 401(k), Medicare or Social Security. He says that they are more beneficial and advantageous since the said checks can without difficulty be 3X or 4X bigger compared to the usual Social Security checks payments without the limitations required in its encashment. See This Article for more info.
He discloses that because of the Statute 26-F, the entities that deal out the checks can run their business without paying taxes, but must conform to the following pre-requisites:
- The companies must produce ninety percent of their earnings from the transportation, storage, processing, and production of gas and oil within the United States, and
- They must consent to pay the profitable checks to investors, a majority of whom are amassing $124,000 to $643,000 yearly.
Research has it that the said checks are genuine and was ratified in 1987 by the U.S. Congress. At present, there are 568 corporations who conform to the conditions of the Statute 26-F. Hence, they are permitted to disburse freedom checks. And Matt Badiali was able to uncover this particular type of investment while he was serving on a project as a financial adviser that took him around the world to meet oil and mining CEOs.
The companies who payout these kind of checks must produce, process, store, and transport their oil and gas production from major oil fields within the United States such as the Marcellus Shale, Bakken Shale, and Permian Basin; and must pay investors 90% of their earnings. These earnings are the freedom checks Matt Badiali mentioned in his video.
Since the money received by investors through the checks stated above are regarded as part of their capital investments and not income, shareholders are not mandated by law to pay income taxes.
MLP investments, on the other hand, may require tax payments but these only apply to capital profits rate that is lower and not on the higher income rare, which is advantageous for investors. Interestingly, purchasing MLP shares is similar to the procurement of Google or Apple shares where the dividend payout is either deposited into the investors account or through the mail, and the amounts could be considerably large like $10,000 to $50,000 per month. Read more: https://dailyreckoning.com/freedom-checks-exposed/