X
Washington

The Truth About Freedom Checks [Not a Scam!]

By , Money Morning

If you've seen the viral video for "freedom checks" featuring Matt Badiali and are wondering if they are a legitimate investment or a scam, we've got great news for you: Our team of investment analysts looked into them, and they are 100% legitimate.

Our analysts verified that, while the name "freedom checks" is a bit of creative marketing, the investments themselves are completely legitimate and were actually enacted by Congress in 1987 under a little-known statute called 26-F.

Today, 568 companies meet the Statute 26-F requirements and are legally allowed to issue freedom checks.

The companies that issue these checks can operate tax-free, as long as they meet two requirements.

  1. They must generate 90% of their revenue from the production, processing, storage, and transportation of oil and gas here in the United States...
  1. Agree to pay out the lucrative freedom checks to shareholders, many of whom are collecting $124,000... $266,000... and as much as $643,000 each and every year.

While our investment analysts have confirmed that freedom checks are in fact a legitimate investment, it's easy to see why a handful of "review" sites have popped up claiming that Matt Badiali and his freedom checks are a scam: They simply don't understand how the investments work and quickly dismiss the lucrative opportunity.

It's true that these freedom checks are not a government program like Social Security or Medicare, and they're not a 401(k), or IRA, or any similar type of retirement account.

In fact, they can easily be three or four times larger than the average monthly Social Security payment, and unlike that program, there are no age or income restrictions to collect the checks.

And yes, you can invest in these freedom checks through your online brokerage account.

So what is this lucrative investment that Matt's talking about?
As our investment analysts discovered, the companies that issue freedom checks are called "master limited partnerships," or MLPs.

How Did Matt Badiali Discover Master Limited Partnerships?

While working for a famous financial expert on a project that would take him across the globe, Matt discovered MLPs, the exclusive group of 568 companies, can issue freedom checks.

As mentioned earlier, these companies primarily operate in the production, processing, storage, and transportation of oil and gas. They explore for new oil and gas wells, transport oil and gas across vast pipeline networks, and refine the oil and gas that comes from the Bakken Shale, the Permian Basin, the Marcellus Shale, and other major oil and gas fields here in the U.S.

The monthly or quarterly payments from MLPs, called "distributions," are very similar to traditional stock dividends, and it's these payments that Matt calls freedom checks.

Here's more great news: Because these payments are treated as return of capital, instead of income, investors do not have to pay income taxes on them.

Investors looking to start collecting these payments don't even have to open a special account. Buying shares in an MLP is just as easy as buying a share of Apple or Google. And just like a traditional dividend-paying stock, you can receive your distribution either in the mail or deposited directly into your brokerage account.

Our analysts found many investors who are making $10,000, $25,000, $50,000 a month from their freedom checks!

Of course, these are the top investors, and most people can't expect to collect payments quite so large. But these freedom checks do pay out two to three times more than most conservative investments.

The good news is that with some of the MLPs trading for less than $10, it's possible for anyone to get started today, even with a modest amount of money.

To learn more about how you can start collecting freedom checks from Matt's favorite MLP investments, we have a transcription of his video presentation that you can read by clicking here.

[mmpazkzone name="end-story-hostage" network="9794" site="307044" id="138536" type="4"]