When geologist Matt Badiali got a phone call from a famous financial expert, he had no idea it would change his life forever. As a teacher at the University of North Carolina, he was in a unique position to be helpful to this unnamed financial expert. Since he was investing in companies that develop natural resources (mining, energy, etc), the financial expert needed a geologist that he could trust to verify the claims of others. He would be paid well for this work, but what paid even more was the financial advice and tutelage that Mr. Badiali received. Visit the website freedomchecks.com to learn more.
To put it simply, he discovered a way to make a lot of money from a relatively small investment, by taking advantage of a little-known type of investment. In 1987, congress passed statute 26-F, which was intended to stimulate domestic production of natural resources such as oil, coal, natural gas, etc. The purpose of this statute was to reduce America’s dependence on foreign energy sources. Under this statute, a company that meets the requirements can operate completely tax-free. The requirements are that they must generate at least 90% of their revenue from domestic energy production, and that they must give generous benefits to their investors in the form of “Freedom Checks“. If they meet these requirements, the company is designated as a Master Limited Partnership (MLP). At present, there are 568 MLP’s.
So, for a mining or energy company, this is a pretty good deal. They end up paying a lot to their investors, because by doing so they can avoid paying the government even more.
Apparently, a lot of people have cashed in on these Freedom Checks. Even major investors like Goldman-Sachs have made sure to get in on these lucrative investments. As with any other investment, you get more if you invest more. Goldman Sachs reportedly makes about 8.9 million in Freedom Checks. Robert Mercer makes about 7.1 million. Fayez Sarofim makes about 2 million. According to Matt Badiali, the man who first publicized this method, the tricky part lies in knowing which energy companies to invest in. He says to look for those that are known to give large and consistent payouts, that are known to have at least a billion dollars worth of raw assets, and that have a long and proven history as a healthy company with rich investors.
One cannot help that such a thing is too good to be true, but so far there is no reason to think that this method is anything but legitimate. Learn more about Freedom Checks at dailyreckoning.com.