Tips To Spot Fake High
Yield Investments
High yield investments
are things that produce
a yield of more than 2
percent per month. You
can find some good
mutual funds that
produce 30% or higher in
any given year, and they
would fit the
description of a high
yield investment.
Unfortunately, mutual
funds will never produce
these stellar results
consistently. Their good
performance will cause a
flood of money to come
knocking on their door,
and with a lot more
money, it becomes harder
to produce big returns.
Online, there are
thousands of places that
offer high yield
investments. As you
might expect, the vast
majority are scams -
simple ponzis set up to
look like elaborate
operations.
Once you have enough
experience with high
yield investments, you
can usually spot the
scams with relative
ease, but even the best
people still get caught
in elaborate scams.
Here are the things
professional investors
look for when looking
into high yield
investments:
Fixed returns. If a
program guarantees a
time-based return (2%
per day, for instance),
then it is almost
certainly a scam. No one
has a crystal ball, and
in the high yield
community, uncertainty
is the major force that
prevails. So any one
skilled at foreign
exchange trading or
options trading would
never predict they would
make 2% each and every
day.
No contact information.
The high yield
investments that are
real will always let you
know who is behind it,
and what they do. In the
normal investment world,
there is a prospectus
for each offering, which
describes what the
venture is about, and
how they make money. A
real high yield
investment would always
give you the name and
resumé for the principal
people behind the
operation. If you don't
get a name, phone number
and address, it is a
scam.
No registration. All
high yield investments
will create profit, and
be subject to taxation
by some government
somewhere in the world.
If the persons offering
a high yield investment
have not bothered to
register the venture,
then it is most
certainly a scam.
No Contract. The high
yield investments that
promise great things
should put things into
writing, and have you
agree to the terms
before they begin to
earn you an income. If
you find a high yield
investment that does not
require you to sign a
contract, you can be
sure they will disappear
eventually - along with
your money.
The SEC publishes a
short description of
what to look for, and it
is well worth a minute
to review it. It is at
http://www.sec.gov/investor/pubs/investorfraud.htm
You should be aware that
investor fraud is at an
all-time high, and if
you ever find yourself a
victim of financial
fraud, there is very
little chance you will
ever see your money
again. Governments
around the world are
overwhelmed by the scams
and victim complaints
that pour in daily, so
the best you can do is
file a report, and be
happy knowing you
reported it.
|
