Freedom checks are probably not something you’re familiar with unless you have a lot of deep working knowledge of the oil, natural gas or mining Industries. They really are not checks in traditional sense of the word other than you’re able to receive dividends off of them via check if you so choose. The man who decided to give them their name of freedom checks is Banyan Hill editor Matt Badiali who has had a career in geology and has learned about investments in natural resources and precious metals over the years. He found out some unique things about these investments.
One of the first things to know about freedom checks is they do trade and can be bought like regular stocks, but they have several differences. One is that they are from master limited partnership (MLP) companies which are companies that must pay out 90℅ of their income to investors. These MLP companies have benefited from different oil and fracking booms over the years, and Badiali says over the next year even freedom check investors could be poised to see over $34.6 billion paid out. These investments have even shown gains in the past that total close to 40,000℅.
But one of the biggest differences that set freedom checks apart from traditional investments is that they are returns on capital and not returns on income. The technical explanation on that can be complex, but because they do not operate as gains on income, you do not have to pay income taxes on their dividends at all. The only tax you pay is when you decide to sell them, but you only pay the lower capital gains tax when you do so. The ultimate reason they’ve been given the name “freedom checks” is because the US is moving full speed to gain freedom from foreign energy dependence, and this is one investment you don’t want to miss out on as it does. To learn more about these investments, you should visit Badiali’s page on the Banyan Hill website.