High Yield Investment Programs…are they legitimate?
Have you ever seen an ad for a website that promises you to make 2% to %30 per day on your investment? Well many of them are somewhat legitimate. If you leave your money in there for one day, you will make what they say. However this is where the fun stops. If you really want to make money on interest, then you need to go to your bank and set up a 5 year CD (certificate of deposit) at 5% per year. If you put $100,000 in, at the end of five years, you will have about $128,400 if it is compounded daily.
I only trust my hard earned money with federally insured programs and institutions. My grandfather had nearly $300,000 in CD’s alone. If he was getting 5% compounded daily, then at the end of one year he would have ended up with a surplus of $15,380 per year, which equals about $1,281 per month. In my opinion, that is the best way to make money.
If you start a roth IRA with $1,000 and each year add $1,000 to the fund until you are 65 years old, you should have a very comfortable retirement. For example: if an 18 year old starts a roth IRA and uses the above parameters, with a rate of 9%, he/she should have around $740,698. What if you can afford to put in $2,000, or even $5,000 per year. If you started the fund with $5,000 and put in $5,000 annually, then you would accumulate around $3.7 million if you had the IRA for 47 years.
Invest wisely. I can think of a few good reasons why you should never invest in some program that has doesn’t even have a physical address.