Freedom Checks: Are They a Scam?

Freedom checks will make you rich. Thousand-percent returns. Little or no downside. What is the catch?

Freedom Checks: Are They a Scam?

Freedom checks will make you rich. Thousand-percent returns. Little or no downside. What is the catch? This is a scheme marketed by Banyon Hill which is a publisher of a newsletter. This is how they describe it in their article debunking that it is a scam. Incidentally, I don't think that it is a scam. However, that doesn't mean it is a good idea.

"This investment which they call “freedom checks” comes from companies that operate in the production, processing, storage and transportation of natural resources here in the U.S., primarily focused in the oil and gas industries.

With the massive decrease in imported oil from Middle Eastern countries, and an incredible increase in oil and gas production here in the U.S. due to the fracking boom, these companies are poised to generate massive profits in the years to come, enabling them to pay out an estimated $34.6 billion in freedom checks to savvy investors over the next 12 months.

And since the companies that pay out these freedom checks trade like any other stock, many of them are poised to rise dramatically in the years to come.

Matt says his historical analysis shows some companies could see gains as high as 5,889% … 8,839% … or even 39,832%.

That could turn a small $1,000 investment into a staggering $398,000.

They go on to tell you that you are investing in Master Limited Partnerships. Here is how they describe it:

"As I mentioned earlier, these companies primarily operate in the production, processing, storage and transportation of oil and gas. They explore for new oil and gas wells, transport oil and gas across vast pipeline networks and refine the oil and gas that comes from the Bakken Shale, the Permian Basin, the Marcellus Shale and other major oil and gas fields here in the U.S.

In order to qualify as an MLP, the companies must pay out at least 90% of its income to investors. It’s these income payments that Matt calls freedom checks.

Currently, there are 568 companies that issue these monthly or quarterly payments.

The monthly or quarterly distributions from MLPs are very similar to traditional stock dividends.

However, because they are treated as return of capital, instead of income, investors do not have to pay income taxes on them.

And if you decide to sell your MLP investment, any profit from the sale is taxed at the lower capital gains rate, not the higher personal income rate, offering additional tax benefits to investors."

Here is the problem I have with newsletter marketers:

1) You can't get their secret without subscribing to their newsletter

2) There is no such thing as easy money without the highest of risk (which they never tell you)

3) Oh did I tell you that you can lose 100% of your investment in a MLP? How do those eye popping returns look now?

4) Everything is great with these "Freedom Checks" when oil prices are great. However, a disaster when they are bad.

It comes down to trust. I don't trust anyone who markets this way. It is not a scam. It is just irresponsible marketing. Unsuspecting investors fall for the easy money investment all of the time only to find out there is a dark side no one told them about. This is a good deal for the highest risk takers.

The only warning in their marketing:

"As a warning, some of what you are about to see is controversial. But if you are open to finding new ways to make money with little risk, I think you could become incredibly rich."

Little Risk? To bad that there is not a law against irresponsible marketing.

Here is there ad - see for yourself.

Comments
No. 1-13
BobBrooks
BobBrooks

Editor

@1ksuek - thanks for the kind words - look for that piece on Monday!

1ksuek
1ksuek

Looking forward to it. Keep up the good work.

BobBrooks
BobBrooks

Editor

@1ksuek - yes and their aggressive marketing is in overdrive right now. It is about using the good to be true filter. There is no free lunch. I am working on a piece as a follow up to their latest marketing efforts that I will publish tomorrow- thanks for your comments

1ksuek
1ksuek

This article exemplifies what I always tell my progressive friends: The internet provides willingly and voluntarily what progressives try to force, that is, protection against the "big bad" rich people, "greedy" capitalists, and "evil" corporations. I don't understand why ANYONE these days wouldn't type in a simple google search prior to buying or investing or even believing anything. Granted the information found may just muddy the waters, but at least you'd know that there's more to the story. Someone who has some wiggle room to take risks may love this deal.

Cedonulli
Cedonulli

Yes I agree with that aspect too. Many live at home. Many have double incomes and do save. A money force indeed.

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