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Freedom Checks and the Red Flags - 03/01/18

Bob tells the reality of why you might want to stay away from the Freedom Checks.

Freedom Checks and the Red Flags

Bob tells the reality of why you might want to stay away from the Freedom Checks.

Bob thanks for the detail on Freedom checks. No magic check here, simply looks like a hyped up marketing scheme for a very ordinary investment vehicle called an energy MLP. But in no way is it huge mailbox money, its just ordinary dividend income and stock appreciation. The most common energy pipeline MLP index is the Alerian Index (symbol AMZ). Its simply an index like the S&P 500 but instead consists of legitimate publicly traded pipeline companies. And nothing government guaranteed about it other than the tax structure (like a REIT). So the returns? 7% yield and since oil and nat gas are always folowwing through the pipelines like a tollway it is predictable income. But with rising interest rates the market rationally prices AMZ down along with other high yielders like REITs and utilities (see AMZ chart).

@B-investor - great additional information - thanks for taking it a little more technical. I know that there are readers who appreciate it. I am going to be writing part II over the weekend.

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