The Touted "10% per Year for Ten Years" Investment Ad

[MikeD]

I listen to some talk radio. I am astounded by the ads for natural erection pills and dog food that stops shedding. Oh, and the "new kind" of cat litter! I have figgered out that I have to take the ads with a grain of salt.

I have heard one that says it is an investment plan that returns 10% per year for ten years. Well, that "adds" up but what is their trick? How do they make money? I don't think they can say stuff that's just totally false, can they? Especially when money is involved as the product.

I am asking in earnest and would read their materials but the contact method is a text to a number or leaving info on a phone answering machine, neither of which I am willing to do just to satisfy my curiosity.

Can someone who knows tell me what they are selling?

Thanks,
Mike D.

 

[COcheesehead]

I listen to some talk radio. I am astounded by the ads for natural erection pills and dog food that stops shedding. Oh, and the "new kind" of cat litter! I have figgered out that I have to take the ads with a grain of salt.

I have heard one that says it is an investment plan that returns 10% per year for ten years. Well, that "adds" up but what is their trick? How do they make money? I don't think they can say stuff that's just totally false, can they? Especially when money is involved as the product.

I am asking in earnest and would read their materials but the contact method is a text to a number or leaving info on a phone answering machine, neither of which I am willing to do just to satisfy my curiosity.

Can someone who knows tell me what they are selling?

Thanks,
Mike D.

Just because its on the radio doesn't make it legit. There was financial guy here in Colorado that was on TV all the time and even had John Elway talk at his events. The guy was running a ponzi scheme and was eventually convicted.

 

[joeea]

I have heard one that says it is an investment plan that returns 10% per year for ten years.

If you give me $1,000,000 today, I promise to return $100,000 per year for ten years.

Trust me.

 

[always_learning]

Forget the 10% for 10 years.... I want to know about the new kind of cat litter!! I'd love for someone to invent cat litter that just evaporates when liquids and solids come into contact with it. No scooping necessary!

I haven't listened to live radio in ages (I stream/podcast because I hate ads) so I haven't heard those lovely promises you mentioned, but I do have decades of live radio listening under my belt so I understand what you're talking about. Isn't there "truth in advertising"? Was there a long list of caveats played at the end of that ad in 3x speed?

 

[MikeD]

If you give me $1,000,000 today, I promise to return $100,000 per year for ten years.

Trust me.

That's what I meant by "adds up" in quotes. They seem to imply returns. I don't remember the exact wording and I don't think I was intended to.

Also, I didn't hear a fast talking disclaimer as I'd have attributed the marvel of 10% returns to that.

 

[RenoJay]

It might be one of these deals where they’re buying real estate but you get the loan in your name and the leverages return on your down payment is expected to be 10%.

 

[MikeD]

It might be one of these deals where they’re buying real estate but you get the loan in your name and the leverages return on your down payment is expected to be 10%.

Thanks for the reply to my question. I don't usually go for "Sure Things" and "Great Deals" such as that so I don't know much about these kind of things.

Thanks,
Mike D.

 

[jazz4cash]

I had a boss that I greatly respected tell me repeatedly about a "ten for ten" plan that "his guy" put him into. I tried to ask if that included some return of principal but he didn't get it. Now I'm thinking it could be a plan like OP described, e.g. 100% return of principal with no investment gain. If you are terrified of the market it might seem reasonable.

 

[Sunset]

I had a boss that I greatly respected tell me repeatedly about a "ten for ten" plan that "his guy" put him into. I tried to ask if that included some return of principal but he didn't get it. Now I'm thinking it could be a plan like OP described, e.g. 100% return of principal with no investment gain. If you are terrified of the market it might seem reasonable.

So why not put it in 2% FDIC insured CD's and take out 10% per year. Would still have more $$$ left after the 10 years

 

[OldShooter]

... Can someone who knows tell me what they are selling? ...

Same thing the casinos and the lotteries are selling: dreams of a free lunch. No need to sleuth out details.

 

[jazz4cash]

So why not put it in 2% FDIC insured CD's and take out 10% per year. Would still have more $$$ left after the 10 years

I agree, why not? But I think he beloved getting 10% is better than getting 2% ( was way less at the time, too) not realizing it is comparing apples to oranges. Some folks have more confidence using a "money guy". Not to many "money guys" are gonna use an FDIC account. I know a lot of people like my old boss.

 

[NYEXPAT]

I am surprised to hear people still listen to radio's! Maybe, because I don't have a car and the stations broadcast in a language I do not understand?

 

[USGrant1962]

I am surprised to hear people still listen to radio's! Maybe, because I don't have a car and the stations broadcast in a language I do not understand?

All my radio listening is in the car, and it is a lot less than before I retired

 

[braumeister]

I am surprised to hear people still listen to radio's! Maybe, because I don't have a car and the stations broadcast in a language I do not understand?

You've lived in South America for how many years?
And you're not fluent in the language?

 

[brett]

In our area there have been several very large Ponzi scams with losses extending into the hundreds of millions of dollars.

The scammers purchased time on the Christian radio station. Two-three hours every Saturday. The turned it into a financial program but the real reason was to promote their scam as wonderful investment.

They signed up many luckless suckers who assumed that it was legit simply because it was on a Christian radio station. Big mistake.

Trust but verify. They didn't.

 

[Dtail]

All my radio listening is in the car, and it is a lot less than before I retired

+1 and just music.