Investing in MLPs – Master Limited Partnerships: Ryan Giannotto, CFA, Director of Research with GraniteShares discusses Master Limited Partnerships (MPLs) and what you can do with them to generate income in retirement.
An MLP is a business venture in the form of a publicly-traded limited partnership. A master limited partnership combines the tax benefits of a private partnership with the liquidity of a publicly-traded company. A master limited partnership trades on national exchanges. MLPs generally experience cash flow stability and are required by the partnership agreement to distribute a set amount of cash to investors. The structure of MLPs can help reduce the cost of capital in capital intensive businesses. The first MLP was organized in 1981 but by 1987 the US Congress effectively limited the use of them to natural resources and the real estate sector. MLPs do not pay federal income taxes. Watch this finStream video to learn more about investing in MLPs – Master Limited Partnerships.