# "Too good to be true" investments...



## Gundini (28 July 2009)

I am really not happy!

Over the last few days, I dealt with a company offering 20% ROI Guaranteed over 5 years. It was a sound investment at great odds, so I believed!

But, one simple phone call, to a respected mentor, who explained to me:

"Why would they give you 20% Guaranteed per annum, when, if they could guarantee the banks the same, via a commercial bill, and source debt @ 7%?

This statement shocked me! What sort of idiot was I to think this could be a valid investment! 

I am soooo disappointed in myself...

I hang my head in shame for even thinking it was possible.


----------



## pursuitute (28 July 2009)

Gundini said:


> But, one simple phone call, to a respected mentor, who explained to me:
> 
> "Why would they give you 20% Guaranteed per annum, when, if they could guarantee the banks the same, via a commercial bill, and source debt @ 7%?



It's obvious when you type it out loud  Validation on the need to bounce things around eh?


----------



## doctorj (28 July 2009)

Of course the return is possible. It's the guaranteed bit that is the stumbling block.

I can think of a very small number of circumstances where such a guaranteed return may be offered (e.g. parent hitting statutory exposure limits requires more capital in sub quickly and is prepared to underwrite offer in exchange for not losing control or having the added burden of greater disclosure), however these situations with non-market type terms and favourable return profiles tends to be offered to mates with deep pockets rather than the public.

It's worth living by the old clichÃ©s that says there is no such thing as a free lunch and if it is too good to be true, it probably is. From time to time you may come across the free lunch, but the price you pay is all the DD you do along the way to find it.

It might be worth flagging this company to the likes of ASIC. You may just save someone less savvy than yourself from doing their dough. I'd be interested to read more about it if you could PM me their website or a link to the specific offer.


----------



## nunthewiser (28 July 2009)

where do i sign ?


----------



## doctorj (28 July 2009)

I was in Baku last week and banks were offering 4 year AZN/USD deposits at up to 19% and EUR/GBP deposits at 13%.  6 month deposits went down to 7-10%.  

You've got to wonder what their average cost of funding is like if they have to pay those rates on deposits...


----------



## So_Cynical (28 July 2009)

doctorj said:


> I was in Baku last week and banks were offering 4 year AZN/USD deposits at up to 19% and EUR/GBP deposits at 13%.




 Like everyone knows...where, what the hell Baku is. 

http://en.wikipedia.org/wiki/Baku

Baku (Azerbaijani: Bakı), sometimes known as Baqy, Baky, Baki or BakÃ¼, is the capital, the largest city, and the largest port of Azerbaijan and all the Caucasus. Located on the southern shore of the Absheron Peninsula,


----------



## Gundini (28 July 2009)

nunthewiser said:


> where do i sign ?




That was my thoughts nun, and mentioned those words in my request for further terms and conditions. 

The fact is, the model is flawless, but the guarantee is fraudulant.... The only guarantee is that the company behind the opportunity has no assets, and therefore can't support your guarantee. If they had one, they could easily finance at 7% rather than 20%.... 

It gives creedence to the ole' phrase.. "there is a sucker born every minute"

PS: Have PMed you good doctor


----------



## Buckeroo (28 July 2009)

Gundini said:


> I am soooo disappointed in myself...
> 
> I hang my head in shame for even thinking it was possible.




And so you should!. I'm sure you hear this every day of every week,* if it sounds to good to be true, it most definitely is!*

Cheers


----------



## Mofra (29 July 2009)

If that return is sourced in Australia, it is either a ridiculously optimistic  business scheme or a mezzanine financing operation which is certainly outside the risk profile for 99.99% of any investers worth their salt.


----------



## CapnBirdseye (29 July 2009)

I have been offered the same and am signing up next week.  There is sovereign money behind this so it's watertight.

The bonus is that I get to go to Nigeria to sign the papers and hand over all my cash.  I can't wait, I love flying.


----------



## Trembling Hand (29 July 2009)

I'll offer you 20% guaranteed no probs up to say ..... oh ...  $500,000.








As long as I get everything above 20%


----------



## nunthewiser (29 July 2009)

Trembling Hand said:


> I'll offer you 20% guaranteed no probs up to say ..... oh ...  $500,000.
> 
> 
> 
> ...





 needs to know your full name , home adress , next of kin , favorite pet and local watering hole .

then we have a deal


----------



## skyQuake (29 July 2009)

Trembling Hand said:


> I'll offer you 20% guaranteed no probs up to say ..... oh ...  $500,000.
> 
> 
> 
> ...




I'd like to see which bucket shop will take up to $500k of your money TH


----------



## vincent191 (29 July 2009)

Me too.....where do I sign?  I have never been to Nigeria and they tell me it is very nice this time of the year and the natives are very nice to investors.


----------



## Trembling Hand (29 July 2009)

skyQuake said:


> I'd like to see which bucket shop will take up to $500k of your money TH




The casino of choice at the mo is the HSI. no need for buckets or other such hardware.

And if ASIC want to find me for soliciting funds without a prospectus they can find me here,

http://maps.google.com.au/maps?f=q&...500486&spn=0.038566,0.064716&t=h&z=14&iwloc=C


----------



## skyQuake (29 July 2009)

Trembling Hand said:


> The casino of choice at the mo is the HSI. no need for buckets or other such hardware.
> 
> And if ASIC want to find me for soliciting funds without a prospectus they can find me here,
> 
> http://maps.google.com.au/maps?f=q&...500486&spn=0.038566,0.064716&t=h&z=14&iwloc=C




So i've been sending money to you all along! 

I'm looking at a 'reputable' bucket shop thats boasting 5pt spreads on the HSI, no slippage (on stops - min 10pts), and instant execution!

Too good to be true... probably, but as big kev would say, I'M EXCITED!

Hows latency on IB? Bearable?


----------



## Gundini (30 July 2009)

Trembling Hand said:


> I'll offer you 20% guaranteed no probs up to say ..... oh ...  $500,000.
> 
> As long as I get everything above 20%




Yes that sounds fair enough. Would you consider paying the $833 monthly on a $50K investment? I would be happy to move forward with this offer providing you can guarentee 20% ROI. 

PM me


----------

