Freedom checks are a tax free investment opportunity that is not run by the government. While the program is not directly run by the government, it is regulated through certain federal law, more specifically Statue 26-F. The law allows for energy companies and related business to thank their inventors by sending out generous dividends. So what qualifies you for this opportunity and what are the guidelines?
First of all, in order to receive a freedom check, you must make a commitment as an investor to the energy company you have just bought stocks from. You must continually invest in the the company. Freedom checks are not a get rich quick scheme. They require substantial amounts of investments and must meet very specific regulations. One of these regulations on the company’s end is that 90% of that check should come from transportation, storage, production or processing of oil and/or gas in the united States, the second regulation is that companies must send out these checks once a year. So how do you get yours?
Right now there are $34.6 billion in freedom checks and in order to get your cut, you must invest in what is known as a Master Limited Partnership, or MLP. MLPs function in the role of a publicly traded partnership. Which basically means you can enjoy the high liquidity of publicly traded company, while also obtaining the tax related advantages of a partnership. MLP’s are not a recent thing. They have been around for years and there are basically two different types. One involves limited partners hwo purchase MLP shares and provide initial capital, and the MLPs that are bought by the public. In order to get your cut of a freedom check, you have be part of the public who’s buying them.
Expert market analyzer and geology professor Matt Badiali says that the key to making a smart investment in an energy company that will pay out freedom checks is to do your own research about MLPs and decide which one you want to invest in, and how much capital you’re willing to invest.