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How Long to Stick with A High Yield Investing Program?

Updated on April 13, 2010

When a High Yield Investment Program (HYIP) is paying well, it sometimes feels good to see the investment yield good returns over and over again. With the knowledge that all HYIP one day will fail, one start asking the question; when is the right time to stop compounding or reinvesting and take out your money from a program? This is a tough question to adequately answer. But really, it depends on the type of program that is invested in and the rate of return. Programs fall into the 3 recommended categories which will help in determining how much one should invest, how long should invest and if you can keep compounding your interest or reinvesting. They are as follows:

Category 1 HYIP: Low Stable Payers

This category pays between 2-7% weekly which makes up to 8-28% monthly. This category of program is probably one of the safest types around. More likely than categories 2 and 3, they actually invest funds in stocks, forex or other stable HYIP like theirs. This means they are likely to be around for quite a while. Even if they do end up as a ponzi, their lifespan will be much longer than those of categories 2 and 3. It is recommended that you invest a sum of money and then compound half of your returns until you get back your principal (the original amount you invested). Once you have recovered your principal, continue to compound/reinvest but this time at a rate say between 60-70% of your returns. If the program sticks around long enough, you can be able to profit quite a bit. Once you receive 250% return it is recommended that you stop compound and look for another program.

Category 2 HYIP: Mid-Range Stable Payers

This category pays between 8-16% weekly which makes up to 32-64% monthly. This category of program is 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 and so on. However many are just ponzi’s. Many HYIP of this category are usually a mixture of both ponzi and investment program. They invest members funds in a variety of ways though most of the time find it difficult to pay out such high returns with the revenue they are making. This forces them to become part ponzi, thereby using some of the new members funds to pay off old members. For category 2 HYIP, it is recommend that you compound/reinvest only 20% of your returns until you get your principal back after which you will stop reinvesting or compounding and just let the program run it’s course.

Category 3 HYIP: High Unstable Payers

This category of HYIP are high paying and relatively insecure programs. They offer to pay over 17% weekly which makes up to over 65% monthly. This category of HYIP are more likely those who pay everyday. For example they could pay 3%, 5%, 10% or even more per day. This category of HYIP are almost 99.9% of the time part ponzi and they have an extremely short lifespan usually not more than 3 months. The higher the daily return the less likely the program will last. If you dare to gamble your money in such programs, it advised that you only invest once and do not reinvest or compound your earnings.

In conclusion, all these are just opinions. Performance may vary. Stick to these guidelines and investigate HYIP’s before investing in them. One of the sites where you can do a thorough investigation is One other thing I must mention about HYIP; never invest any amount you cannot afford to lose. Do not use the money for your rent or food.


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