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Income Investments - Big Profits From Energy

By : Richard Stooker    29 or more times read
Submitted 2012-04-11 16:37:41
When it comes to income investments, as with everything else, there are weaknesses and strengths.

To obtain a balanced portfolio, you have to balance factors. That's true of all investments.

However, once kind of income investment stands out as probably the very best. It's also the least known, and that's one of its strengths. Load up on them now, before the big crowd moves in.

Buy Up Master Limited Partnerships Like Crazy

They're Master Limited Partnerships. Basically, you buy units in a limited partnership in the energy business. More specifically, in the energy transportation business -- what's called "midstream."

You're profiting from the use of oil and natural gas, but they aren't oil stocks like Chevron or utilities like ConEd.

A typical midstream Master Limited Partnership owns pipelines, refineries and storage facilities for crude oil or natural gas, and their byproducts.

So they profit from the demand for energy, not from its market price.

As an MLP Unit Owner, You Get Paid Just for Transporting Energy

We need to burn a certain amount of gasolene whether the market price is $10 or $1,000 per barrel. To get from the oil rig to the gas pump, it has to pass through miles of pipeline.

MLPs own a lot of that pipeline. The oil companies pay them to transport it for them.

What's even better -- the price the MLP charges for this service is set and enforced by the federal government. They even raise it every July by the cost of living PLUS 1.3%.

That's right, the income of Master Limited Partnerships is guaranteed by the government to go up FASTER than inflation!

Master Limited Partnerships Pay Out 90% To Escape Taxes

Yet the government doesn't charge these companies any taxes, so long as they distribute at least 90% of cash to their limited partners.

That's you.

Of course, the government does want you to pay your taxes on this money, but you have to pay taxes anyway.

Historically, Master Limited Partnerships yield around 7%. That's partly because they're not well-known yet, and because there are legal restrictions to mutual funds buying them.

Plus, historically, their required distributions go up around 7% annually. That's not guaranteed, of course, but it's a good bet, because our demand for oil and gas shows no sign of going down.

What's the catch? Taxes are more complicated because you report this income as a limited partner, not with a typical W-2 form. And there are ways around that.

I believe in diversification, but if I had sell all income investments except one type, I'd keep Master Limited Partnerships. They have the best return for your money.

Author Information: You can add increase your income with Master Limited Partnerships in your portfolio. Click here to get the information you need to effectively make money from your investments whether the markets go up or down. If you're ready to discover how income investments can help you retire with financial security, visit this page, enter your email address into the form and click on the Submit Button. Then go to your inbox and verify that. It's free for the taking. http://www.incomeinvesthome.com/. justhost promo
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