- The ContrarianMember@the-contrarianJoin Date: 2005Post Count: 97
Just a little market research here…
How many of you would invest:
$100,000 in a “term deposit” style invest for one year
@ a GUARENTEED 12% return ?Mortgage HunterParticipant@mortgage-hunterJoin Date: 2003Post Count: 3,781
If it was secure then I would park cash there.
Funny thing is that I believe in a direct relationship between risk and reward.
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Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.Leo ChekhovMember@leo-chekhovJoin Date: 2005Post Count: 42
It depends who’s guaranteeing it. At that rate, it’s likely to be one of those meaningless worthless guarantees.
LEOwoodinatorMember@woodinatorJoin Date: 2007Post Count: 9
I would not touch these sorts of offers. Why would these people borrow money from you at 12% when they could borrow from bank at say 8%. It is because the banks have said no to them because they are too risky.
CheersTerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
Guarantees are next to worthless. If it is a company, what happens if it goes into administration? If there are personal guarantees, what happens if the person has no assets or goes bankrupt?
12% pa is also not much, there are managed funds that have average over 20% pa for the past 7 years! Some last year have returned 76%.
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Send an email to get my newsletter.ShOw_Me_ThE_MoNeYMember@show_me_the_moneyJoin Date: 2004Post Count: 80
Sanjiv, i’ll ask you the same question that others have asked Contrarian. Is it secure? what kind of guarantee can you give?dare_to_dreamMember@dare_to_dreamJoin Date: 2006Post Count: 88
Does anyone read FINANCIAL REVIEW – Smart Investor???
They often have companies that offer that exact thing. However, the return is around 9.75% based on a 1yr term deposit with a minimum $5000-$20,000 deposit.
Has anyone dumped money in any of these before???
Fincorp – http://www.fincorp.com.au
Wright Patton Shakespeare – http://www.wpscapital.net.au
City Pacific – http://www.citypac.com.au
I think it was the City Pacific PDS that I was reading, but it says no entry or exit fees if the money stays in the term until maturity, however you read the fine print and it has a 3% commision on any profits it makes… That would mean I would be better sticking it in a 6.1% net saver account at the NAB with no risk…..
Has anyone dealt with either or these three companies before??
Any help would be greatly appreciated.
Paul[suave2]TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
Wasn’t Westpoint a company which was offering these sorts of things? Collapsed owing millions.
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