MLPs through freedom checks offers an ingenious way of investing that reduces the tax burden and further ensures that the investors receive more than 90% of the capital gains. MLPs refer to master limited partnerships and combine the features of both public companies and partnerships. The move has the benefit of ensuring that the invested capital or gains are not subjected to high taxes. The creation of the MLPs was intended to ensure that concerned corporations have access to capital necessary for expansion and other activities. Nonetheless, MLPs are restricted to real estate and energy corporations. Many of the oil and gas companies in the USA are MLPs and offers units as opposed to shares that are provided by other ventures.
However, the units are similar to shares as they can be traded on foreign exchange platforms.
The introduction of the freedom checks can be linked to Matt Badiali who is a geologist and entrepreneur. In his early years, he inspected oil and coal mines in different countries. During the processes, he interacted with many global leaders who improved his understanding of business concepts. Earnings made from MLPs are not taxed immediately. They are only subjected to taxation after they are sold. The provision ensures that taxation does not consume a high portion of the earnings. Many investors thus view it as a lucrative platform where they can improve their financial gains.
Role Played by Matt Badiali in the Introduction of Freedom Checks
Matt Badiali recommends freedom checks as being one of the ways that investors may attain high capital gains on their investments. The plan is based on personal experience where he achieved a financial breakthrough after selling energy stocks in 2010. During the 2008 market crash, Badiali had proceeded to by many stocks in the energy sector. The case was even though experts warned him of the move.
However, he evaluated the performance of each oil and gas corporation on the basis of resources. The analysis formed the basis of identifying the most lucrative firms. According to Badiali, claiming a freedom check may come in handy in recoding high revenue earnings. One can attain freedom checks from financial institutions as well as financial brokers.