September 16, 2018 in Financial News
Many investment opportunities that could end up being life changers for some get passed up because they are portrayed as too sensational. Too many investors get burned by actual scams that they will even overlook a gem if it was in front of their face. It doesn’t help with all the fraud that does take place in the world of finance. Investors have to be more careful than ever with their hard-earned capital. “Freedom Checks” were called a scam by almost everyone until there was enough due diligence performed to prove that they can offer returns that many traditional investments can’t beat. Visit stockgumshoe.com to know more.
To partake in the returns that can be made from “Freedom Checks”, an individual must place their money in “Master Limited Partnerships”. Most investors are completely unaware of MLPs and even stockbrokers with a decent amount of experience may be unfamiliar with them. The tax code is the reason that MLP investing is so profitable. A company that is an MLP can avoid paying federal income taxes if they distribute ninety percent of their profit to their shareholders. Even after distributing that amount of profit, the company still comes out ahead. Investors benefit greatly because they don’t have to pay income taxes on the ‘Freedom Checks” the company pays to its’ shareholders. An investor is required to pay a capital gains tax if they sell their shares for a higher price than they paid for them, but this is normally less than income taxes. Read this article about Freedom Checks at Banyan Hill.
Investors may believe that receiving “Freedom Checks” requires very special steps and loopholes. Any individual with a brokerage account and a small starting sum of capital can invest in MLPs because they trade like any other stock. There are MLPs with reasonable share prices which means that an investor does not need to be rich to take advantage of the potential returns from investing in MLPs. Once an investor becomes an owner in an MLP, the company will send “Freedom Checks” directly to their brokerage account or in the mail. This is potentially an ideal investment for an individual who needs a decent income stream but who is trying to avoid the headaches of extra tax payments.