Videos about Matt Badiali’s Freedom Checks have gone viral. The interest is there. Many people have reservations. The following are answers to the most common and most important questions that people have about Freedom Checks. Learn more about Freedom Checks at Crunchbase.
Are they legal?
Freedom Checks are one hundred percent legal. The program that makes this form of income possible was created by the United States Congress in 1981. Matt Badiali did not discover this form of passive income. It has existed for years. He did bring the availability of this income stream to the attention of smaller investors.
The basis of the income that these investments can produce is the limited tax liability that the corporations were given by Congress. Not every company can qualify. The tax code was changed again and again until 1987.
As of 1987, any company that is involved in natural resource development even in a tangential manner is qualified to receive special tax consideration. The structure has become known as a master limited partnership.
The master limited partnership stock is traded just like any other stock. The idea behind limited taxation was to assist the country in achieving energy independence.
Do they make money?
This is an investment opportunity. A person has to understand what dividend reinvestment does for them. An example will help.
You buy some of the shares of one of the tax-free companies. You will pay tax on any dividends that the company makes. You can avoid paying a large amount of those taxes by reinvesting your dividend payments in the company stock. This is a smart thing to do because the companies that have the tax advantage are very profitable and long-lived organizations like The Blackstone Group – a private financial services management group.
Putting your money back into the stock keeps taxes low and profits higher for you over time.
How can Badiali claim that you can make so much each month?
The simple answer is opportunism. Badiali is watching the market closely. He sees when each master limited partnership is about to pay a dividend. This is when an investor should buy in. There is a short time frame to qualify for the dividend. You have the choice of keeping the income and paying taxes or reinvesting. Reinvesting does not mean you have to reinvest in the same master limited partnership.
The idea is to repeat this same behavior again and again. Even a small investment can produce a substantial tax fee return if you do what Badiali suggests. Check: https://affiliatedork.com/matt-badialis-freedom-checks-real