Matt Badiali was currently a member of Banyan Hill Publishing Company and the author of investment advice column Real Wealth Strategist began his career in academia. He was working as a professor at the University of North Carolina teaching geology whenever a financial expert first contacted him. This financial expert was in the process of building a team that would assist him in the creation of investment advice specialized in the natural resource in commodities markets. This financial expert offered Matt Badiali a position as part of the team that would involve him traveling the world meeting hands-on with members of the natural resource industry. Matt Badiali took this opportunity and over the last ten years has been involved with numerous successful investment opportunities. Read this article at metropolismag.com.
Matt Badiali has most famously made the recent announcement of his discovery of what he has called Freedom Checks. Freedom Checks is a term that he has given to the income that is distributed by a particular type of corporation to its investors known as master limited partnerships. A Master Limited Partnership is a particular classification of a corporation that was made possible during the enactment of Statute 26-F by Congress in the 1980s. As a result of the legislation that was enacted by Congress any corporation that meant the requirements in Statute 26-F were qualified to operate with zero tax burden. Statute 26-F specifies that a corporation must generate 90% of its income through the production, distribution, processing, and transportation of oil and natural gas domestically within the borders of the United States of America. These profits must also be paid out to its investors on either a monthly or quarterly basis in a way that is analogous to dividends in the conventional stock market.
It is these payouts for Master Limited Partnership’s that Matt Badiali is referring to whenever he speaks of Freedom Checks. Any income that an individual receives as part of these payments is treated as a return of capital and thus is subject to the lower rate of capital gains tax and not the higher personal income tax rate. This is incredibly significant as any individual who wishes to create a steady stream of income but not increase their personal income tax burden is able to invest in a Master Limited Partnership just as easily as they can invest in corporations and the stock market. Additionally, any proceeds from a sale of an investment in a master limited partnership are also only subject to the lower capital gains rate of tax.