Are Online High Yield Investment Programs Legitimate?

[rogery]

The returns offered are unsustainable long term. Approach HYIPs like a casino. Some will win, some wont. Hundreds of HYIPs have come and gone but if you like to gamble take a shot. Just be sure to use money you are willing to lose.

[Sohcahtoa]

I'm skeptical of GeniusFunds.  If I invest $50, then in 6 months, it will turn into $482.  If I take out my original investment plus a little and just reinvest $400, it will turn into $4487.  If I then reinvest $4,000 of that, it turns into a whopping $61539.  $50 can turn into over $60k in only 1 1/2 years?  I find that hard to believe.  Even more crazy is that if I reinvest that $60k, it will turn into more than $600,000!! Over half a million in two years with only a $50 investment?  Yeah...I just can't see that happening.

Especially considering the idea that if I keep "the change" from that $600k earning, which is about $37k, and reinvest the remaining $600k, it will turn to $2.9 million.

$2.9 million
After only 2 1/2 years.
With a $50 investment.

My "too good to be true" alarm is going off pretty hardcore.  And the fact that Genius Funds has been around for a while makes me worry even more. By now, the people with small initial investments have been reinvesting for awhile and could easily have balances over $1 million, which is hard to pay out, I'm sure, unless they really ARE investing in what they claim they are.

If Genius Funds is a ponzi scheme, then I'm sure it will be collapsing soon.  Even though its far more conservative than the peak of HYIPs a couple years ago with 12DailyPro, it still can't last.  However, if they actually ARE investing your money into the things they claim, then maybe it IS sustainable.  1% a day can certainly be earned in the stock market and currency exchanges, but I wouldn't say it can be done reliably.

[Sohcahtoa]

However, I get my $700 federal tax refund on Friday, and I don't NEED this money.  Its nice to have an all, and will give me some breathing room with my finances, but I can afford to lose $50 in a gamble.  I'm going to do it.  I'll invest $50.  If I do end up making a $1 million, INCREDIBLE!  I won't count on it though.

[kirbymiester]

I'm skeptical of GeniusFunds.  If I invest $50, then in 6 months, it will turn into $482.  If I take out my original investment plus a little and just reinvest $400, it will turn into $4487.  If I then reinvest $4,000 of that, it turns into a whopping $61539.  $50 can turn into over $60k in only 1 1/2 years?  I find that hard to believe.  Even more crazy is that if I reinvest that $60k, it will turn into more than $600,000!! Over half a million in two years with only a $50 investment?  Yeah...I just can't see that happening.

I see you used their earnings calculator to get those numbers. However, two things are different than what you're actually saying.

First, the amount of time you put into the calculator is the number of business days, which exclude weekends and holidays. So, since you put 182 days into the calculator assuming that was 6 months, in reality, 182 business days is more like 52 weeks x 5 days per week = 260 days. Subtracting holidays, it's more like 250 days in one year. So in reality, you make that $482 in about 73% of one year.

Second, the earnings calculator uses the maximum amount of interest you can earn per day, which are ideal market conditions (as they point out in the disclaimer on the earnings calculator page). In reality, the interest rates are towards the middle of the interest range they give. This means that all the interest you get is about .1-.3% lower than what the calculator says, and if you account for the compounding interest, that's a substantially lower income.

So you see now that those numbers are actually quite off. Not to say that GeniusFund's return is not astronomically high and great, but I hope it kind of makes it a bit more realistic. As for the comparison to the stock market, like you said it is attainable but difficult to do so. And that's exactly what they do. They invest all the money you give them in emerging economies that have very low exposure...And while you may just regard that as them feeding all their investors BS while they hide behind the scenes with their Ponzi scheme, that's what they tell us and that's what I believe they do.

[kirbymiester]

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

I've been with GeniusFunds for about 4 months now. Like oldbuddy said, you shouldn't base your decision on investing on what I say, but rather on your own education and willingness to lose all you invest (but hopefulness that you'll get it all back)

But to answer your question, I think they could be around for years to come. If they've survived for 3 years, and made it through all the competition with "the next best thing" HYIP sites...AND managed to satisfy all their customers with reliable returns, why can't they continue doing that?

[SNewell26]

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

I've been with GeniusFunds for about 4 months now. Like oldbuddy said, you shouldn't base your decision on investing on what I say, but rather on your own education and willingness to lose all you invest (but hopefulness that you'll get it all back)

But to answer your question, I think they could be around for years to come. If they've survived for 3 years, and made it through all the competition with "the next best thing" HYIP sites...AND managed to satisfy all their customers with reliable returns, why can't they continue doing that?

Good point! I definitely have a lot to consider. I think I might try it out. When I cash out, I'll probably use that money to start small and build up.
Thanks for you input.

[Sohcahtoa]

I've been with GeniusFunds for about 4 months now. Like oldbuddy said, you shouldn't base your decision on investing on what I say, but rather on your own education and willingness to lose all you invest (but hopefulness that you'll get it all back)

But to answer your question, I think they could be around for years to come. If they've survived for 3 years, and made it through all the competition with "the next best thing" HYIP sites...AND managed to satisfy all their customers with reliable returns, why can't they continue doing that?

Do you have to manually reinvest your weekly dividends?  Or will it do it automagically?

[kirbymiester]

Do you have to manually reinvest your weekly dividends?  Or will it do it automagically?

You can either have it autoMAGICally reinvest, or do it yourself. If you do it yourself, you have the option of cashing out that money instead of reinvesting it.

[Wren28]

Do you have to manually reinvest your weekly dividends?  Or will it do it automagically?

You can either have it autoMAGICally reinvest, or do it yourself. If you do it yourself, you have the option of cashing out that money instead of reinvesting it.

You can change it once a week also. So you could have it reinvest once a week and then turn it off the next week.

[Sohcahtoa]

Registered an account at AlertPay and GeniusFunds.  Damn AlertPay for making me wait to verify my checking account before I can make my deposit!

[kirbymiester]

Registered an account at AlertPay and GeniusFunds.  Damn AlertPay for making me wait to verify my checking account before I can make my deposit!

Good point! I definitely have a lot to consider. I think I might try it out. When I cash out, I'll probably use that money to start small and build up.
Thanks for you input.

Glad you guys are convinced. Once again though, use plenty of caution.

...to tell the truth though, I die a little inside every time members sign up unreferred!  hahaha

[oldbuddy]

This is becoming an interesting thread. The question that led me to try it was simply this, would I rather spend the little check I earned free, or take a chance on turning it into a steady stream I could spend over and over? I just switched my reinvestment over to 50% so I can collect the reward from waiting four months and still keep it growing.

[Wren28]

Yeah, I just switched my reinvestment over to 0% so I can get my own money back within 14 weeks and then I will compound it and let it ride for a few months, playing with their money.

[SNewell26]

This is becoming an interesting thread. The question that led me to try it was simply this, would I rather spend the little check I earned free, or take a chance on turning it into a steady stream I could spend over and over? I just switched my reinvestment over to 50% so I can collect the reward from waiting four months and still keep it growing.

Hey oldbuddy!

I signed up today. I can't wait to see if this really works.

[Sohcahtoa]

Heh...my bank's anti-fraud called me today to double check that the credit card charge for $56 to AlertPay was legit.  AlertPay isn't based in America, so to my bank, it was odd to suddenly see a charge coming from another country.

I'm kind of confused though...which earns more money?  The weekly, or the daily option?  My math shows that the weekly option would.  Its currently 6.3%, while the daily is only 1.1%.  Even with compounding 5 times a week (Since it doesn't earn money on weekends), the daily only comes out to 5.6% weekly.  Yet, the weekly option is described as "Long-term investment generating moderate regular income." while the daily one is described as "Long-term investment generating maximum regular income."   So...which is it?