Are Online High Yield Investment Programs Legitimate?

[SNewell26]

I was curious about high yield investment programs. Most of them are offshore companies and I hear these programs are illegal in the US.
I have been doing some research, but can't figure out if they are legit.  I have read some blogs/articles on the internet that insist they are pyriamid schemes or ponzi schemes. Any advice on this would be great. Thanks!

[dford15]

I was curious about high yield investment programs. Most of them are offshore companies and I hear these programs are illegal in the US.
I have been doing some research, but can't figure out if they are legit.  I have read some blogs/articles on the internet that insist they are pyriamid schemes or ponzi schemes. Any advice on this would be great. Thanks!

I was curious about high yield investment programs. Most of them are offshore companies and I hear these programs are illegal in the US.
I have been doing some research, but can't figure out if they are legit.  I have read some blogs/articles on the internet that insist they are pyriamid schemes or ponzi schemes. Any advice on this would be great. Thanks!

You have to be careful with the HYIP sites. There are some that does work for sure but unfortunely there are also many that does take your money, pay you at first then later on they split after you invested a larger amount. There is one that has been around for over 3 years though and does pay every time! So while they can and do work you just have to do your homework and research the right ones. Of course no matter what online business you get into you should always do your research any ways to see if it is legit, plus you will be able to see other ways to market it when you end up joining it. Another great tip about doing HYIP sites is to use free money to invest with any ways. That way if they do leave later on there really is no loss since you did not use your own money to invest with. Plus after you have made a profit on the HYIP site take your initial investment money back and put it back into your bank account or paypal or whatever. That way you can use the earned money only to play around with in the HYIP site. So it's a matter of using good judgement, doing your research, and investing wisely and you will do fine. One more thing to mention is many people want to look down on them sites, and while some do deserve that there are some that does really pay, and is great on helping there members actually make money! Rather you realize it or not banks play with the money you invest with them all the time. They buy stocks, bonds, mortages, annuities, and etc. with your money, but they give you a return of about 3% over a year period! So it's up to you if you want small returns or bigger returns. If anyone has more questions feel free to let me know!

[mrsbluesmith]

Practice Due Diligence and research, research, research.  Google "HYIP monitors".  They have good reviews of which ones are paying, how long they've been in business and which ones are scams.

[Administrator]

In the accepted view of the market, higher returns are correlated with higher risk.  No amount of diversification or any other such gobbledygook can nullify that fact.

Would you bet at a blackjack table where you had great odds but could lose not only your bet but your whole pile of chips at any given moment with a high probability?  It's a strained analogy but the point is that no matter how legitimate sounding a "HYIP" is, it is only a matter of time before the pyramid breaks down.

If the masterminds behind a given HYIP site really could make 80% APY by just "playing" with short term investments, they would simply invest some of their own seed money and grow it exponentially - no need to solicit outside depositors with all the risk & hassle that entails.  I am surprised to hear that a site has been around for 3 years, but still, how long is that?  Sites like FC have been around for more than a decade already.

[Sohcahtoa]

Most HYIPs are Ponzi schemes.  That's why most of them don't last.  Once the number being pulled out exceeds the amount being put in, the money runs out and it collapses.  Usually, the people running a scheme like that will recognize when a significant amount of money is being pulled out and will close the operation and steal all the remaining money.

As the admin said...higher returns are a higher risk.  Obscenely high returns like those in HYIPs are going to be obscenely high risk.  50% in a week?  Yeah, right.  If anyone could reliably make that kind of return on an investment, the economy would collapse.

I'm curious as to which HYIP you're referring to that has been around for 3 years.

[SNewell26]

Thanks Everybody! The information that you provided is very helpful. Do any of you know if HYIP's are legal in the US?

[jongarton]

Most are SCAMS ..... you could do all the research you like and if you find one you like check with the BBB to see if they are legit companies and what their reputation is before you sink your hard earned money into a SCAM!!!

[atvgirl1]

most are not legite they look real they will send you checks that are real and when you cash them the bank comes back on you.

[oldbuddy]

If you want to see a Ponzi Scheme that so far has survived all the negative hype being thrown at it look at the United States Social Security System. How long has it been around?

One HYIP that has been around 3 years is Genius Funds and I get paid every day.

[kirbymiester]

Thanks Everybody! The information that you provided is very helpful. Do any of you know if HYIP's are legal in the US?

Whether or not they are illegal doesn't matter if they're offshore, since there's nothing the government can do about that.

As for their actual legality assuming they weren't offshore, all HYIPs that cease to exist or otherwise close likely do so because they were a scam. Scams are fraud, and fraud is illegal.

Also, I've been paid multiple times from the 3-year-old HYIP, GeniusFunds, as well. There are also HYIPs that have been around for even longer, such as TopFinancial.com. That one has been around since 1996.

[SNewell26]

If you want to see a Ponzi Scheme that so far has survived all the negative hype being thrown at it look at the United States Social Security System. How long has it been around?

One HYIP that has been around 3 years is Genius Funds and I get paid every day.

Hey Oldbuddy!

I was actually considering Genius Funds and also looking into Infinitiva. I have been receiving positive feedback about Genius Funds, however,  I must admit I am a little skeptical about these programs because they just seem too good to be true. So, you don't ever get taxed on the money that you make with these programs?  I do think that using the money that you make from fusion cash or any freebie site is a good idea. At least you don't have to worry about losing any of your own money, so there really is no risk if the company folds. I heard that some people cash out often instead of compounding just to be sure they get paid. Well, I'm still doing my research. I do wonder why some of these companies end up going private though?

[Administrator]

While I cannot offer tax advice, I would suggest being careful with anything that tells you that your earnings are not taxable.

If you want to see a Ponzi Scheme that so far has survived all the negative hype being thrown at it look at the United States Social Security System. How long has it been around?

One HYIP that has been around 3 years is Genius Funds and I get paid every day.

Sure, you get paid every day -- until you don't.

And while Social Security is definitely broken, the US government has substantial assets (e.g. planes, arms, land, etc) that it could theoretically sell to meet its obligations.  A ponzi scheme has no such backstop. 

I'm just upset by the total BS that these scam artists spit out about "investment strategy" in order to con people into depositing.  There's a reason you can't use PayPal with these sites - because they inevitably fail.  You have to use eGold instead, which is the preferred online currency of child *bleep* operators & drug dealers.  I'm not saying everyone who uses eGold is a criminal, but many more criminals use eGold than PayPal or other more reputable payment systems.  The federal gov't already hit eGold & its founders with a number of lawsuits and I'm sure it's only a matter of time before they're regulated out of existence in the States.

[kirbymiester]

While I cannot offer tax advice, I would suggest being careful with anything that tells you that your earnings are not taxable.

Sure, you get paid every day -- until you don't.

And while Social Security is definitely broken, the US government has substantial assets (e.g. planes, arms, land, etc) that it could theoretically sell to meet its obligations.  A ponzi scheme has no such backstop. 

I'm just upset by the total BS that these scam artists spit out about "investment strategy" in order to con people into depositing.  There's a reason you can't use PayPal with these sites - because they inevitably fail.  You have to use eGold instead, which is the preferred online currency of child *bleep* operators & drug dealers.  I'm not saying everyone who uses eGold is a criminal, but many more criminals use eGold than PayPal or other more reputable payment systems.  The federal gov't already hit eGold & its founders with a number of lawsuits and I'm sure it's only a matter of time before they're regulated out of existence in the States.

I've never heard of eGold...who says that every HYIP is the same in that respect? I withdraw my money with Alertpay.

Also, that's a good point right there. Definitely don't ignore taxes when considering your earnings. Any reputable site will remind you to report your earnings to your tax professional, or even make you submit your tax information to them (which I personally am a bit uncomfortable with). GeniusFunds simply reminds you to talk to your tax professional about your financial situation with GeniusFunds, but I've seen many other sites give you a certain threshold that must be broken before they start needing action involving taxes (e.g. If you make $1000 in one year, they'll need you to give them tax info).

[SNewell26]

While I cannot offer tax advice, I would suggest being careful with anything that tells you that your earnings are not taxable.

Sure, you get paid every day -- until you don't.

And while Social Security is definitely broken, the US government has substantial assets (e.g. planes, arms, land, etc) that it could theoretically sell to meet its obligations.  A ponzi scheme has no such backstop. 

I'm just upset by the total BS that these scam artists spit out about "investment strategy" in order to con people into depositing.  There's a reason you can't use PayPal with these sites - because they inevitably fail.  You have to use eGold instead, which is the preferred online currency of child *bleep* operators & drug dealers.  I'm not saying everyone who uses eGold is a criminal, but many more criminals use eGold than PayPal or other more reputable payment systems.  The federal gov't already hit eGold & its founders with a number of lawsuits and I'm sure it's only a matter of time before they're regulated out of existence in the States.

I've never heard of eGold...who says that every HYIP is the same in that respect? I withdraw my money with Alertpay.

Also, that's a good point right there. Definitely don't ignore taxes when considering your earnings. Any reputable site will remind you to report your earnings to your tax professional, or even make you submit your tax information to them (which I personally am a bit uncomfortable with). GeniusFunds simply reminds you to talk to your tax professional about your financial situation with GeniusFunds, but I've seen many other sites give you a certain threshold that must be broken before they start needing action involving taxes (e.g. If you make $1000 in one year, they'll need you to give them tax info).

Thanks kirbymiester ! That info was helpful. How long have you been with Genius Funds? Do you think they will be around for awhile?

[oldbuddy]

Do you think they will be around for awhile?

How long anyone thinks they will be around is not useful data, base your decision to participate on your OWN feelings and research and NEVER use money you can't afford to lose.

So why would ANYONE take that kind of risk with any online program? I am retired and 71 years old, why would I even consider putting my money into a CD that pays me 1% a year when I can get 1% a day? No I don't use Genius Funds for my day to day living, it's just for fun and travel. If it did blow up like admin wisely suggested it may, I just don't take as many trips next year. For as long as it lasts, my quality of life is vastly improved and I have the money in the bank to prove it.