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 LEARNING TOPICS...
 Financial Freedom
begins with a solid foundation in proper
money mangement.
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Network Marketing
is perhaps the most powerful business model
available to set you free.
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Personal Development
is important to improve your personal,
family, and professional lives.
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High Yield
Investments
The latest fad investment sounds good, I mean who doesn’t
like ‘high yield’ returns on their investments, right? With a
classification like ‘high yield investments’ I was already a little
concerned about the packaging and as it turns out, there is reason to be
skeptical. Unfortunately, nearly every so-called high yield investment program
is simply one in a plethora of the hottest financial scams.
So how do high yield investment programs differ from other pooled
investment plans, like mutual funds? Well, even the most affordable mutual
funds have minimum investments of around $1,000-$2,500 USD. With high yield
investments, however, there is typically a very low minimum investment (less
than $100 USD) or no minimum at all. The ‘investment brokers’ in the
case of the average high yield investment program pool all the contributed
funds and convert real currencies into some form of electronic pseudo or
virtual currency.
Doesn’t sound to bad so far, hunh? I mean it
makes sense that to open the door to smalltime investors some type of
e-currency may grease the wheels and make profit realizable for every member.
Some high yield investment programs will have contributors deposit money in a
‘prime bank’ account, either way they tend to make great claims about
how the juggernaut banks regularly make zillions off of interest and that the
little guy (or gal) has no hope of reaping such benefits unless they all pool
their money together.
The bottom line
Most High Yield Investments
are just investments in someone else’s bank account and you will never see
a dime of your money again. What known as Ponzi schemes, a type of pyramid
scheme where early investors collect money from newer investors and then fodl
up shop, leaving the newest investors with nothing but a feeling of
violation.
For more information on HYIPs check out the
Wikipedia entry
and for a comprehensive list of known HTIP scams as well as thought provoking
discussion on the matter, see the
HYIP Scam
Search.
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