Master limited partnerships are one of the sweet spots for 2014, when taxes for everyone will be on the rise — even those making under $250,000. That’s right; no one is safe now from being taxed at a higher rate.
I can only hope this special asset class (distributed income from MLPs is 80% to 90% free of federal income tax due to depreciation and depletion allowances) doesn’t become the target of some regulatory movement seeking to destroy the formation of capital for capital-intensive industries like constructing and operating oil and gas pipelines and mining for deep-deposit coal ore.
Within the 31 holdings that make up the two Cash Machine core portfolios, 10 are master limited partnerships. They cover a variety of sectors including coal, shipping, natural gas, venture capital and more.
Seeing as how the future is set to include higher marginal tax brackets for investors of all income levels, the time to embrace the MLP asset class is now. The MLPs on the Cash Machine Buy List are part of “the world is only getting bigger” theme that stands to benefit from such a statement.
It’s the right asset class at the right time, and to get you started, I’ll give you my top MLP right now, along with three more that look like attractive candidates I might recommend for the Cash Machine portfolio in the future, and also a fund playing on MLPs.