UPDATED May 4th, 2018 – Just recently, the media introduced something new. They are called “Freedom Checks,” and you might have heard of them. In one ad, Matt Badiali is featured holding a large check for $114,287. It looks exactly like the check you get from the government for your tax refund.
Many viewers of these ads have probably immediately written them off as a scam, a too-good-to-be-true pipe dream, or a get-rich-quick scheme that only works for the tiniest percent of those that try to gain from it. Part of that instinct is due to the nature of the ads, which can sometimes come across as sensational and over-excited about the concept. The government writing individual citizens a check for no reason at all? That doesn’t seem possible.
But much of the confusion and writing-off of these ‘freedom checks’ comes from the fact that they’re not very well understood. It also might not help that most people have no idea who Matt Badiali is or why he’s talking about these ‘freedom checks’ in the first place. What makes him qualified to suggest this opportunity? And how is the average person supposed to know if this opportunity is even legitimate?
Let’s take a look at Badiali, freedom checks, and the investing principles behind them to find out whether they’re for real or too good to be true.
Matt Badiali is a financial analyst, and his background in geology puts him ahead of all of the others. He attended Penn State University where he studied Earth Sciences and earned a Bachelor of Science degree. Then, Matt moved on to Florida Atlantic University where he received his Master of Science in Geology. His work has taken him all over the world where he has personally inspected the mines and wells of Switzerland, Turkey, Haiti, Singapore, Hong Kong, Iraq and Papua New Guinea as well as many others. His training as a geologist helped him to interrogate CEOs in a knowledgeable manner. So, he always learned the truth about an investment directly from the source.
This check isn’t really from the government. It is a private check, but we will discuss that later.
What’s going on here is something that you may have come in contact with before. The intention is to make it seem as if you can raise your hand, and someone will come and hand you a ton of cash. That’s what you think until you start to learn the details, and by the time that happens, you aren’t interested anymore.
Maybe you were one of the unfortunate ones who immediately got your credit card so that you could buy whatever it was that was being sold. In this instance, we are talking about “U.S. Freedom Checks,” and they are using the same script to convince you that you need to get in on this. As a matter of fact, it is the same script that was used to hook people into “Patriot Checks” that Lifetime Income Report advertised last year and continues to promote. You can relax because “Freedom Checks” is something entirely different.
The one thing that makes “Freedom Checks” different from all the other scams is that this one is an “investment.” A clue comes from the fact that “Freedom Checks” were introduced in an investment newsletter. They are promising that you can receive a ton of cash from something that they want to sell you. No one is giving away money.
If you’re still there, we can explore this a little further. We are going to see exactly what it is that Matt Badiali is promoting with his “Freedom Checks.”
After the stock market crash in 2008, Matt Badiali embarked on an ambitious venture. He purchased stock in Kaminak Gold Corp., but his friends and family didn’t believe that this was a wise decision. The stock market was still going down at the time, but Matt Badiali’s stock was going up. He purchased the stock on December 5, 2008 at the price of $0.06 and sold it on August 26, 2010 for $2.64. This meant that he realized a gain of 4,400 percent!
First, let’s examine the ad for this product:
“See this check…this one right here written out for $114,287? I call it a ‘freedom check.’ Imagine this check being yours. All you have to do is sign it and cash it…It’s no wonder Reuter’s reports that freedom checks are ‘delivering a windfall’ and that Motley Fool says the ‘cash payouts are sky-high.’ Barron’s reports…‘it’s time to take a look.’ Forbes gives them a …‘bullish case.’ And Seeking Alpha says Freedom Checks are a…‘hidden gem.’”
This ad seems to have everything that a financial ad needs. It suggests that a huge chunk of money is on its way to your doorstep, and it also gives you some quotes from highly reputable people. This makes it look like this is the real deal.
Ads such as these are always written as if you must jump in RIGHT NOW! The purpose of this is to keep you from thinking about your decision too much. The copywriters know that if you take enough time to consider what is being offered, you are likely to leave it on the table.
The reality is that this type of investment is a commitment. You must be prepared to make repeated investments in order to receive a payout at a future date, so these types of investments always deserve more thought than these ads are willing to give you.
Another financial expert hired Mr. Badiali to perform some research for him. Because of this relationship, this financial expert was able to significantly increase revenue to his firm because of Matt Badiali’s recommendations. He distinguished himself as superior to all of the hedge fund managers and mutual fund managers that the company had working for it at the time.
Matt Badiali has stated, “It’s a secret program presidents from both sides of the aisle have been working on over the last 40 years…from Nixon, Reagan, Bush and Clinton all the way to Obama and even Trump – making this what many insiders have called the ‘last truly bipartisan policy.’”
The truth is that Matt Badiali is promoting “Master Limited Partnerships” or MLPs.
An MLP is a business partnership that functions in the role of a publicly traded limited partnership. This means that you can obtain the tax-related advantages of a partnership, including the fact that your profits will only be taxed once profits are received by your investors. But it also means that an MLP can enjoy the fluid nature and high liquidity of a company that has gone public.
There are essentially two types of MLP, those that involve limited partners who purchase MLP shares and provide the initial capital, and general partners who are responsible for operating the MLP on an ongoing, daily basis.
These partnerships are traded nationally, offering truly dramatic tax benefits for general partners and limited partners alike. Meanwhile, MLPs also help enhance cash flow because they distribute all available assets to investors. This can help reduce capital costs for many businesses that are highly centered around capital. This might include the energy sector or oil industry businesses alike, and many others to boot.
MLPs are nothing new—they’ve been in use since way back in 1981. At that time they were less regulated than they are now, but they’ve continued to bring about the same powerful benefits as before. In 1987 Congress enacted a statute known as 26-F. While this didn’t make much of a splash at the time, there are now over 550 companies who meet the requirements for Statute 26-F and can legally offer freedom checks at any time.
But what are the limitations on freedom checks? There are essentially two primary regulations. First, 90% of the revenue that powers freedom checks must come in the form of storage, transportation, processing or production of oil or gas in America. Secondly, the companies must agree to pay out these checks on an annual basis.
So why are so many websites and individuals claiming these checks are a scam? It’s simply because they misunderstand exactly how freedom checks work, thinking they’re some puffed-up get-rich-quick scheme designed to lure people in. The truth is, they’re not a government program in the way that many advertisements market them to be. The government isn’t handing out checks to individuals or companies all over the country.
And that’s a good thing, because a freedom check can easily dwarf a Social Security monthly payment by as much as three or four times. Even better, because the payments are considered by the government to be ‘return of capital,’ that means that they’re not subjected to income tax and as a result allow for much higher returns than otherwise possible.
These special MLP investments known as freedom checks also allow investors to bypass the need to open a special account or anything similar to begin benefiting. It’s as easy as buying a share of any other stock, and you can even get your distribution check through the mail or simply have it deposited directly into whatever account you use to invest.
Yet another benefit of MLPs and freedom check is that they can be traded for as little as $10 or less. That means that anyone can get involved and begin seeing returns, not just those with a massive portfolio and loads of capital to invest.
MLPs are traded publicly on the stock market, and they are exempt from paying federal income taxes if they “pass through” their profits to their shareholders. Therefore, these investments are income-focused, and shareholders usually receive high distribution yields. This means that a trader of MLPs is a lot like someone who trades dividend-paying stocks.
With MLPs, you purchase shares, and in return, you receive payments that you can either deposit or reinvest in additional shares. These quarterly payments tend to increase as time goes by, and the shares rise as well.
First, Mr. Badiali ensures that the company has “In-Demand” assets in the amount of $1 billion or more, and these assets must be liquid. The raw materials that the company controls or owns must be in high demand and must also be worth billions of dollars. Second, the company must distribute payments to shareholders on a consistent basis and/or the payments need to increase consistently. Third, the company has to be able to prove that its shareholders are growing wealthy because of their investments in the company. The last thing Mr. Badiali does is examine a company’s financial statements to ensure that they are financially healthy.
But who is Matt Badiali, and why is his advice worth listening to about this seemingly too-good-to-be-true opportunity? His background might surprise you if you’re expecting someone born and raised in the world of finance and investing. But Badiali’s unique background brings him a perspective that can’t be matched in the world of investments and unique earning opportunities. So what informs his unorthodox approach?
Badiali has spent over twenty years studying and working within the natural resources industry. He’s been consulted on dozens of occasions as an expert when it comes to the varying industries including energy, agriculture, and mining. He’s also done everything from working hands-on with large drilling rigs to exploring mine shafts and managing oil wells which he owns. He’s managed to turn all of these investments and opportunities into profitable investments both in the short- and long-term view.
Badiali has spent time all over the globe, traveling from Singapore to Hong Kong, the remote reaches of Papua New Guinea to areas as remote as the Yukon and the Mexican desert. This approach to getting his hands dirty and being involved first-hand has given Badiali an understanding of investing that comes from real-world experience. He recognizes that the only way to develop a true knowledge of financial success, or anything for that matter, is to be involved at the ground level. He advises his clients to “go see for yourself” whether your investment is safe and secure, and whether it will lead to worthwhile dividends down the road.
He also stresses the importance of staying up-to-date with the most recent, groundbreaking opportunities in investing. That’s why he’s constantly going out and meeting with CEOs, master investors and experts on everything from stocks to precious metals. It’s all for the sake of developing a clear picture of what the future holds, and what opportunities might lie there.
Badiali has a long list of accolades that include speaking with business luminaries including Ross Beaty, T. Boone Pickens and Rick Rule. He’s also taught at both Duke University and the University of North Carolina.
Despite all of his success in business and the world of geology, Badiali has another passion. One that drives him beyond all the others. Badiali describes his true passion as, “tracking down rare and profitable investment opportunities for my readers.”
It’s this passion that led Badiali to spend eleven years writing about and researching incredibly profitable yet under-valued investment opportunities that might not yet have caught the eye of the public at large. It’s also the reason he’s spent eleven years writing and researching these investments for other publishers, helping to spread the world about these opportunities.
This is how Badiali has been able to make some truly eye-popping investments that have paid massive dividends. They include an investment in 2008 into a mining stock then valued at $0.06. But even as the stock market plummeted two years later, Badiali was able to sell his investment at $2.64 for a total gain of 4,400%.
Investing in opportunities that others might undervalue or even think are worthless is what has brought Badiali his success, and it’s what has led him to the opportunities behind freedom checks. Far from the get-rich-quick schemes that they’re often presented as, freedom checks are simply MLPs that bring about significant rewards for long-term investments over time.
As a matter of fact, over $34.6 billion in freedom checks have been paid thanks to the most recent tax plan, resulting in massive earnings for a wide range of people from all walks of life. Again, these are not free checks being handed out by the government. Rather, they’re high-yield investments that require some level of commitment to obtain.
So that’s why those over-the-top ads you’ve been seeing might be a bit overexaggerated– but shouldn’t be ignored. In their own way, they might be the first introduction you have to an investment opportunity that can have three or four times the yield as your social security checks, without any tax obligations.
The key is to do research for yourself and begin your investment journey with a firm foundation of understanding about how exactly MLPs work, how they can provide opportunities to receive ‘freedom checks’, and how you can begin your investment regardless of your financial situation. Remember—just because something is exaggerated, or marketed with over-the-top tactics, doesn’t mean that it can’t provide you an opportunity to change your life in both the short-term and the future.