How Long Should You Stick With A High Yield Investing Program? by:Brian Kay
Most people ask us when we feel is the right time for them to stop compounding/reinvesting and take their money out of a program
. This is a tough answer to give. It all depends on the program that is invested in and the rate of return. Usually we recommend the following for the below 3 categories:Type #1 HYIP - Low stable payers (Pays between 2-7% per week, 8-28% per month). This type of program is probably one of the safer types around. More likely than types 2 and 3, these are actually investing funds in Stocks, Forex, or other stable programs. This means that they will most likely be around for quite some time. Even if they do end up as a ponzi, their lifespan will be much longer then types 2 and 3. We recommend that you Invest a sum of money and then compound half of your returns until you get back your principle. Once you have recovered your principle continue to compound/reinvest but this time at a rate of 60-70% of your returns. If the program sticks around, you should be able to profit quite a bit. Once you receive 250% return we recommend that you stop compounding and look for another program.
Type #2 HYIP - Mid range paying moderately secure program (Pays 8-16% per week, 32-64% per month). This type of program is probably the most popular among investors. They feel secure since the payouts are not too high, but also feel like they are going to quickly make a return on their investments. Many of these programs actually invest in other programs, forex, stocks, etc, however many are just ponzi's. We have found that most of Type 2 HYIP's are a mixture of both ponzi and investment program. They more then likely invest members funds in a variety of ways, but most of the time find it impossible to pay out such high returns with the revenue they are making. This forces them to become part ponzi and use some of the new members funds to pay off old members. In the case of the Type 2 HYIPs, we recommend you compound/reinvest only 20% of your returns until you get your principle back, then once you get your principle back you simply stop reinvesting and just let the program run it's course.
Type #3 HYIP - High paying, relatively insecure programs (Pays Over 17% per week and over 65% per month). These are usually the programs which are more then likely daily payers. For example 3%, 5%, 10% per day or even more are offered. 99.9% of the time these are atleast part ponzi, and will most likely end within 3 months. These programs begin with the admin knowing that he will have to run a part ponzi program to succeed. It is nearly impossible to earn such high returns in a short period of time like most of these programs claim. The higher the daily return the less likely the program will last. If you dare to gamble your money in such programs, we recommend that you only invest one time and do not reinvest or compound your earnings. The lifespans of Type 3 programs are usually extremely short and those who invest right when the program opens are the ones who will walk away happy.
All in all these are just some of our opinions. Performance may vary. Stick to these guidelines and investigate HYIP's before investing in them.
About the author
Brian Kay - Owner of some of the Largest Online Investing forums which include:
http://www.talkgold.com/forum
http://www.thehyipforum.com
http://www.web-life.org/vb
http://www.filesharingtalk.com Profiles of the Powerful: Advertising Exec Dudley Fitzpatrick by:Allan Kalish My Simple Penny Stock Picking System by:Sam Chim Factoring Fundamentals - Vendor Financing by:Howard I Schwartz Things To Do Before Investing Into A High Yield Investment Program by:Brian Kay Home Based Business - Why Starting Part-Time Is The Smart Way To Success. by:Kanaga Siva Laying a Foundation for your Business by:Abe Cherian Debt Free Living: Make It Your Future by:Chris Huff Low Interest Personal Loans - Unearthed from the Deeps of Impossibility by:James Taylor Investment Advisors 101 ask some questions. by:Steve Selengut Adverse Credit Homeowner Loans - Braving The Difficult Winds Of Adverse Credit by:Steve Clark Daily Debt Reduction: Top 10 Ways by:Chris Huff Plastic Packaging: Thermoformed Plastic Trays and Pallets - 10 Money Saving Tips You Can Use Right Now! by:E. David Marinac What It takes to Succeed In Business in the 21st century by:Johnny "The Transition Man" Campbell