Recs

0

MLPs: Are Management-Company Fees Too High?

Master limited partnerships are a popular way for investors to earn income. But a recent Bloomberg report suggests that many MLPs pay high management fees that reduce your investment income.

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, looks more closely at the issue of MLPs and management fees. Dan notes that MLPs are popular because of the income that they pay to investors, with tax provisions that require extensive distributions of income and cash flow. But Dan also points out that many MLPs have relationships with outside management companies, such as Kinder Morgan Energy Partners (NYSE: KMP  ) and its management company, Kinder Morgan (NYSE: KMI  ) . Dan emphasizes how important it is to understand the relationship between the MLP and its management company to ensure no conflicts of interest, suggesting MLPs like Enterprise Products Partners (NYSE: EPD  ) that took their management in-house could make things simpler to evaluate. Dan concludes that your income relies on paying as little in fees as possible, making it important for you to know where your money is going.

3 stock picks to ride America's energy bonanza
Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, the Motley Fool is offering a look at three energy companies using a small IRS "loophole" to help line investor pockets. Learn this strategy, and the energy companies taking advantage, in our special report "The IRS Is Daring You To Make This Energy Investment." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2920664, ~/Articles/ArticleHandler.aspx, 8/1/2015 10:01:39 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Dan Caplinger
TMFGalagan

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on Fool.com. With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

Today's Market

updated 12 hours ago Sponsored by:
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASD 5,128.28 -0.50 -0.01%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

7/31/2015 4:03 PM
EPD $28.33 Down -0.59 -2.04%
Enterprise Product… CAPS Rating: *****
KMI $34.64 Down -0.39 -1.11%
Kinder Morgan CAPS Rating: *****
KMP $0.00 Down +0.00 +0.00%
Kinder Morgan Ener… CAPS Rating: *****

Advertisement