Many people in the United States rely on a 401 (k) account to save money for their retirement. The problem with this is that these kinds of accounts are not usually enough to retire on. Retired Americans rely on Social Security to take care of the rest of their financial needs during their golden years, but Social Security barely provides enough for them to count on.
This is where Matt Badiali comes in to offer Americans a more secure and long term strategy. He has been serving Banyan Hill as a senior analyst in recent years and has been highlighting the benefits of what he is calling Freedom Checks this last year. Freedom Checks are an investment opportunity that take advantage of a tax code, which allows investors to invest in oil and natural gas companies based in the U.S. By investing in these companies, Americans can receive payouts from their profits. These payouts are not subject to being taxed regularly but are taxed as capital gains.
When many people hear the name Freedom Checks, they first believe this opportunity could be a scam. They are far from it; however, and function pretty similarly to the way that dividend payments work. The United States government set up this investment opportunity to help provide capital to companies in the country who earn most of their profit from the manufacturing, processing, and transportation of natural gas and oil. This means they are a legitimate and legal investment opportunity, which came about over three decades ago when congress passed legislation to help these companies.
The legislation was named Statute 26-F, and it allows American gas and oil companies to avoid paying taxes on their profits. The huge returns that investors can potentially receive have to do with the fact that these companies pay no federal taxes. The trade off is that the same companies must give a part of their earnings back to their stakeholders, which is actually what Freedom Checks are. They end up paying out a lot of money to their investors, but it ends up being less than they would have to pay out if they were taxed like most other companies were.