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High Yield Investment Programs (HYIP): Investment Schemes And ScamsBy
HYIP is short for High Yield Investment Program. These investment programs are offered over the internet and typically accept smaller investment amounts than other types of consumer investments. With accepted initial investments of $100 or less, High Yield Investment Programs are still able (or at least they promise) to yield very high returns.
The incorporation of electronic currency systems
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Is it better to save money inside or outside of an RRSP?
A recent article in the Toronto Star says "Disciplined savers who do not need the tax deduction are probably better served by keeping their investments in a non-registered account."(1). Is it true? Are people really better off saving money outside of an RRSP? There are a lot of people out there who say things like this and they are almost always wrong. The arguments for non-registered investments generally involve a lot of handwaving and grand claims so let's break it down and look at the numbers. First we'll look at buying stocks in and out of an RRSP, then we'll compare an RRSP to a mortgage payment.
Building A Globally Efficient ETF Portfolio (updated)
Last year I recommended building a low cost efficient global ETF portfolio by allocating funds to cheap index ETF's based on global market capitalization. In my opinion there isn't much more to say about equity investment--that's still what you should do. Allocate your money along the same lines as the global consensus. However, it's time to update the data a little. What's the market cap breakdown look like in 2007?
has made it feasible for HYIPs to accept very large numbers of small investments as well as to operate across international boundaries. Basically, local currency is converted into e-currency when an investment is made and funds are converted back to local currency when profits are paid out.
Unfortunately, the reality is that there has yet to be an HYIP that isn’t eventually revealed to be a scam. Though I’m sure there are legitimate HYIPs out there, the overall track record of these types of investment programs is simply terrible. The most common type of HYIP scam is what’s known as the Ponzi scheme.
Ponzi schemes are scams in which new investors unwittingly (though sometimes knowingly) provide investment cash that goes to paying existing investors. These newer investors are then left with nothing in the pool from which to recoup their investment. HYIPs are generally not based in the U.S., Japan or Europe where very strong laws prohibiting unregistered investment programs exist.
The largest known HYIP ever included more than twenty countries and is now being investigated by Bank Negara Malaysia. This HYIP, called People in Profit System or Pure Profit was started by Bryan Marsden, an engineer, in 2004.
To find out more about the HYIP that you may be considering, take a look at the HYIP Scam Search website (http://www.stochasticsoccer.com/kakarukeys) that maintains a database of reported HYIP scams. To date (October 2006) this database contains more than 3500 known HYIP scams.
Here are some more high yield investment programs articles...
What Is A Pyramid Scheme?
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How, you may ask, can I tell if I am involved in a pyramid scheme? Well, here are some things to consider and ponder.If you are forced to sit through a very long, highly excited sales Read more...
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Reducing Risks Of High Yield Bonds
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High yield bonds have increased risks which include credit risks and interest rate risks. Credit risks of high yield bonds refers to the possibility that default will happen. Default is when a Read more...
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High Yield Savings Accounts
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High yield savings accounts are a great way to save. If you’re only getting 1% interest on your interest savings account then you’re not alone. Yet while a few years ago something around 1% Read more...
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Illegal Investments And The Elderly
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Choosing to make money with illegal investments is pretty stupid. Not only are the chances that you’ll get caught and face civil penalties, but you are creating some very bad personal Read more...
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Money that is invested with an expectation of profit
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