The Tophats Farms Investment Plans.

In our recent First Thoughts article about Tophats Farms, we summarized their two investment plans in the following way:

Tophats offers two investment plans.  Both are very easy to understand.  In fact, Tophats is to be commended for providing more information than is usually given about their investment plan offerings; no effort is made to camouflage the true returns offered by the plans.  Both plans return your investment as part of your earnings.  One plan pays 2.5% interest per day for 60 days and the other pays 3.0% per day for 50 days.  If you do the arithmetic, it tells you that both plans provide the same gross profit of 150%.  So, naturally, the 3% plan would seem to be the best as you can earn this profit in a shorter length of time.  However, the 3% plan requires an investment of over $300.  Not too high to be prohibitive.  But it could deter a few investors.  We have a little bit more to say about the Tophats investment plans.  However, we’ll save that for our review which we hope to publish within the next day or two.  Please stand by…

As we indicated in this brief commentary from our First Thoughts article, there isn’t really too much else to say about the Tophats Farms investment plans.  However, just so that we have everything in one place, let’s repeat here everything that Tophats has to say about the plans in its website:

Plan #1
2.5% per day for 60 days
150% total gross interest
40 days to break even
$10 – $299

Plan #2
3% per day for 50 days
150% total gross interest
33 days to break even
$300 – no limit

As we already implied, this presentation is a breath of fresh air in the HYIP industry.  It is the first time that I have seen a company present a picture of its investment plans such that it is completely clear which is the best alternative.  When you look at the information above, there is no question that the 3% plan is the best way to go.  Both plans result in the SAME gross interest of 150%.  So, that variable is ruled out.  Tophats even reminds us that the 3% plan breaks even before the 2.5% plan.  So, if you can afford the minimum investment of $300, there is no question that the 3% plan is best alternative.  Again, we commend Tophats for such a candid and complete presentation of the information describing their investment plans.  It makes our job much easier when writing a review!

Analysis of the Tophats Farms Investment Plans.

When we analyze a company’s investment plans, we usually determine two quantities: their breakeven points and the average daily net interest (DNI) that each of them pays.  Tophats has already told us when the plans break even.  So, all we have to do is determine their DNIs.  In case you came in late, you determine DNI by taking the total net interest that an investment plan pays you and averaging to out over the number of days in the plan.  In investment plans such as the ones offered by Tophats, you don’t make any profit until you beak even.  After that, everything you earn is “pure” profit.  DNI averages this profit out over the length of an investment plan.  It’s a great quantity to know if you want to compare the profitability (or risk) of one investment program with another.

For both of these plans, the total gross interest is the same — 150%.  Since this includes your investment, you must obviously subtract 100% from it to get the total net interest that each plan pays.  This is 50%, again the same for both programs.  Do get DNI, we just divide this by the number of days in each of the plans.  For the 2.5% plan, the DNI comes out to 0.83% (50/60) and, for the 3% plan, the DNI comes out to exactly 1% (50/50).

Discussion.

First, let’s take another quick at the investment limits for the Tophats investment plans.  In short, they are very reasonable.  Anyone can afford to invest in the 2.5% plan and any even slightly serious investor can afford to invest in the 3% plan.  No effort has been made to try to entice an unwary investor to invest large sums of money in a plan that might offer extremely large or even obscene returns.

Second, the breakeven points are sensible.  The investor will have his money back in a month or so and, perhaps more important, from day one, he will be receiving a return on his investment.  This is far superior to investment plans offered by many HYIPs wherein the investor has to wait until the end of an investment plan to receive even a penny of his earnings.

Third, DNIs are right where we at EmilyNews think they should be — around 1%.  In HYIP Insights #12, we suggested that programs offering investment plans having DNIs of 1% or lower have a better than average chance of long-term survival.

Fourth and related to the third item, the 2.5% plan with a DNI of 0.83% results in an average weekly profit of around 6% while the 3% plan with a DNI of 1% results in an average weekly profit of 7%.  If you refer to the article in HYIP Insights #23, you will see that these values for weekly profit are right where we suggest they should be: high enough such that a good deal of money can be earned from a program, but not so high that the long-term future of a program is seriously in doubt.

In short, the Tophats Farms investment program offers investment plans agree extremely well with our recommendations for a sensible investment program (Please see HYIP Insights #21 for an article about this).  It is one of the very few HYIPs that we have reviewed which are in this category.  In fact, if we were to design a set of investment plans ourselves, it would probably look very much like what Tophats has come up with.

Earnings Examples.

As examples of earnings, let’s see what happens if we invest $300 in both of the Tophats Farms investment plans.  This is right at the borderline where the 2.5% plan ends and the 3% plan begins.  This might be a good way to compare the two of them. We already know that they will both pay you the same total gross interest of 150% of your deposit.  This would be $450.  The difference is that, in the 2.5% plan, it takes you 60 days to earn it whereas, in the 3% plan, it only takes you 50 days.  Furthermore, in the 2.5% plan it will take you 40 days to break even while in the 3% plan it will take you 33 days.  The only other item we need to know is the daily interest that each of the plans will pay you.  For the 2.5% plan you will receive $7.50 (.025 x 300) while for the 3% plan you will receive $9.00 (.03 x 300).  I think it is easy to see that the 3% plan is the way to go.  This is what the folks at Tophats are trying to politely tell you too (not trying to trick you into doing).

Conclusions.

Tophats Farms offers two investment plans.  They are both very well-designed and offer sensible returns that should not put the sustainability of the overall program at risk.  These plans conform very closely to recommendations made by EmilyNews.  Finally, the administration of the Tophats has presented the plans in a way that appears to be unusually open and helpful to the potential investor.  Although we must emphasize that nothing is definite in the HYIP industry, the Tophats program would seem to be a much better than average place for a person to make an investment.  We would hope that this program lives up to this conclusion and remains active for a long-time to come.

I hope that the information in this review is helpful to you as you try to decide whether or not to invest in this program.

Tophats – Review #2

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