Freedom Checks and a Return to Income Investing

As investors watch the FANG stocks constantly reaching new all-time highs, its easy to forget some of the simplest advice many legendary investors have given about dividend investing. In recent years dividend investing has taken a sideline as investors forget that reinvesting dividends is one of the surest ways to get rich over time. For investors who take up dividend investing, they can compound their wealth over many years and enjoy a reliable supplement to their social security checks. Perhaps it is time for dividend investors to go a step further and investigate “Freedom Checks” to generate a passive income that could potentially exceed a monthly social security check by multiples.

If you had heard of “Freedom Checks” already, you may have dismissed them as a fraud. Even skilled investors and stockbrokers with years in the financial arena are unfamiliar with these investments and it seems absurd that an individual can receive a check from a company other than dividends. The truth of the matter is that “Freedom Checks” are unknown and misunderstood. The real term for these investments are Master Limited Partnerships and these are real companies that an investor can place capital in. MLP’s are companies that pay “Freedom Checks” to their shareholders. They are identical to dividends but called distributions.

People in the financial media also found it difficult to believe how companies like MLP’s could offer such high distributions to investors. It was all just part of the tax code which enabled MLP’s to do this. These companies are required to almost all their profits to their shareholders. This is a benefit for the MLP in the form of not paying federal income taxes. Matt Badiali, a legend in the resource sector, believes that an investor who picks the right MLP to invest in may experience thousands of percent returns. After doing some due diligence, any individual interested in receiving Freedom Checks can invest in MLP’s simply through their brokerage account.

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