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.
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