Cash in that Freedom Check

Don’t you just wish that one fine day you stumble across a pot of gold, or maybe hit the jackpot with a lottery ticket, or even get a huge inheritance from a long lost relative? The possibilities are endless and, quite frankly, very enticing. So what happens when you see an ad professing you could get as much as $114,287 by simply signing in? You obviously rush to do exactly what it tells you, because who doesn’t want free money. That is exactly how Freedom Checks has been advertised, free money ready to be cashed in by you. The brainchild of Matt Badiali, Freedom Checks are much more complex than free money. Signing up for a Freedom Check is signing you up for investment. We all instinctively know that there is no free lunch and the same is true for Freedom Checks.

To claim your share of the promised amount, like $27.5 million in the very first month, customers must first invest a certain amount of money. The profit in return will reflect the initial investment, meaning the higher the amount invested, the higher the payback. Again this is all very much in keeping with all our understanding of finance. Jumping into conclusions with regards to the idea of Freedom Checks is not very sound. It must be recognized for what it is, a private investment opportunity. The name does make it seem like it might be a government sanctioned program, or related to a part of the government, like Medicaid or the 401K, but far from it.

These investments are for the long run and require initial deposits before you could ever see any gain from them. Essentially the investment from Freedom Checks goes towards Master Limited Partnerships (MLPs). These are partnerships that are traded publically and since they are technically partnerships they able to avoid paying federal taxes so long as they pass the profits onto their shareholders. So these tax-free, high yielding investments are quite attractive, but they are not free, because they need a principal amount being invested, and secondly because such firms distribute most of their profits (to avoid federal taxes). This might sound nice but it also limits a firm’s ability to grow as reinvestment is only through additional shareholders and not through income reinvested.

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