ROL Financial Blog

High yield investment programs, also known as HYIP and Ponzi scams/schemes, are ultimately scams that promise to provide a ridiculous amount of money (return on investment, usually about 45% per month) by using money invested from new recruits to pay off old investors. High yield investment program scams are on the rise and because of such, people need to be well aware of how to avoid these HYIP scams.

While some of these programs may actually be legit, majority of them are not. They offer anywhere from 1% to 10% return on investment daily. You can invest as much as you like and after a predetermined amount of days, you will receive a high return on investment. The most important thing is not to only invest what you can afford to lose. In addition, many individuals prefer to spread their actual investment over a few different legitimate HYIP.

We’ve talked a little bit about high yield investment programs, but let’s talk now about how to avoid HYIP scams. There are numerous ones out there. As one leaves cyberspace, more are created on a daily basis.

When you come across a HYIP website, check into it a little bit. It is very important to conduct thorough research on any site before giving them any of your money. Go to whois.com and look up the owner’s information. If none can be found, it is probably best to stay away from this particular site, as it’s more than likely a HYIP scam. Do your research for the site and ensure that the information they give you is accurate and matches up with the information that you find from your research.

More often than not, you won’t be able to find any type of management or owner information related to HYIP scam sites. In addition, you won’t be able to find any hard information informing you of how the money is invested. Majority of the time, the website will state something about Forex Trading, or another high-end reputable company, is backing them – while this may be true, it may also not be true. This is something that should be checked into a little closer.

More than likely, these websites look very professional and offer what seems to be a profitable business opportunity. Many of these sites will use spam indexing as well as a web host who provides anonymous hosting to lure in new prospective clients based off information on the web that makes the company have a reputable reputation.

If you are looking for a reputable HYIP, more than likely you will need to find a website that will offer no more than 5% return on investment per day. This is a legitimate amount. In addition, as also mentioned above, spread your investment throughout a couple different programs. This way you still have money invested if a site that you thought was legitimate was actually a scam.

Two of the most important things to remember when thinking about investing money into something: 1) Do not invest more money than you can honestly afford to lose. 2) If it sounds too good to be true then it probably is and you should get as far away from the situation as possible.

A third tip as previously stated above so this is just a quick reminder – be sure to complete thorough research before ever investing money into any online investment program, or HYIP.

The question that seems to race through the minds of most investors is whether or not equity indexed annuities are a wise investment. The situation is so pressing that the National Association of Securities Dealers once questioned the manner in which equity indexed annuities were being marketed and sold and the lack of a body to regulate the manner in which the industry was being handled. However, this is not a question that can be answered lightly without taking the time to understand the basics of the equity Index.

First off, the contract states that you have to invest your money in an insurance company over a period of ten years, it grows without getting taxed. In return, the company is supposed to give you returns based on a certain stock market with an exclusion of the dividends. On top of this, they also promise to deliver minimal returns rates that amount to three percent, which isn’t exactly the best annuity rates but at least its above zero. and what is more, in the event that the market goes down, your investment is safeguarded as it is not affected in any manner and for this reason, majority of investors find it ideal. The only setback is the fact that in the event you withdraw from the investment before the ten years are up, then you lose everything.

Having understood the provisions contained in the Equity Indexed Annuities, let’s revisit the initial question, are they a wise investment? If it were not for the fact that they are a complex investment compared to traditional and fixed annuities, then the answer would be a simple yes and yet, it is not. This is mainly due to the fact that Equity Indexed Annuities contain many penalties, costs and multi-year surrender charges which are hidden and as such, make it impossible for the investor to make sound judgments. This is especially true due to the fact that they promise guaranteed security to the investors.

As stated earlier, the National Association of Securities Dealers have no hand in controlling the marketing of these annuities and as such, by law, there is no provision of prospectus that discloses the terms, conditions and risks involved in equity indexes and to top it all, they can be sold by an insurance agent who does not hold a securities license. For this reason, investors should not be quick to bank on the same without carrying out proper investigations to establish and totally understand the terms used in the provision of the annuity.

Some of the things that ought to be considered include the features that govern the annuity, any tax requirements that might creep up at some point and how they will affect you, return rates expected and how solid they are, liquidity specifications, the duration through which you have to wait before taking out your investment to avoid penalties and all the expenses associated with the annuity with no hidden costs whatsoever. Once you are able to do this, then you will be better placed to decide if it is a scam investment or not. In addition to this, you will be able to avoid falling into the traps of unscrupulous insurance agents.