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The Luminex Investment Plan.

In our “First Thoughts” article about Luminex, we summarized their investment plan in the following way:

For the online investor, Luminex offers a single well-thought-out investment plan.  It pays 1.5% interest per day for a period of 180 days.  For deposits over \$1,000, the interest increases to 1.7%.  With a minimum investment of only .002 BTC (around \$8 right now), the plan is affordable by anyone.  There is no limit on the maximum.  That’s about all there is to it.  In our review of Luminex, which should be ready in a few days, we’ll get into the details of the investment program such as its profitability and risk compared to other online investment programs.  However, I don’t anticipate that we will uncover any unpleasant surprises.  Please stand by…

There really isn’t anything that can be added to this.  So, let’s move right along to our analysis of this investment plan.

Analysis of the Luminex Investment Plan.

When we analyze an investment plan, we typically determine two quantities: the number of days it takes a plan to break even and the average daily net interest it pays over the life of the plan.  Let’s begin by determining the breakeven points.  This is very simple to do.  You just divide 100% by the daily gross interest that the plan pays you.  In the case of Luminex, you divide 100% by 1.5% to get that the plan breaks even in around 67 days.  If you invest more than \$1,000, you will earn 1.7% per day and break even in around 59 days.  You might say that, in general terms, these plans take around two months to break even.

To get the daily net interest (DNI), you first determine the total gross interest which, in the case of the 1.5% version of the plan, would be equal to 1.5 times the 180-day length of the plan.  The result is 270%.  However, this is gross interest and includes your investment.  To determine the total net interest, you must subtract 100% to get 170%.  Finally, dividing this by 180, the number of days in the investment plan, you get the average daily net interest (DNI) that the plan pays.  The result is around 0.94%.  If you do the same arithmetic for the 1.7% version of the investment plan, you will find that the DNI increases to around 1.14%.

Discussion.

OK, the most important thing on the investor’s mind is always to find out how profitable an investment plan is.  Then, he takes a look at the flip side of the coin and tries to find out how risky the plan is.  It’s common sense that, the more money someone promises you, the riskier the deal probably is.  So, the wise investor will try to find a program that strikes a happy medium between profitability and risk.  Of course, there are exceptions to this.  Specifically, there are some online investors who will take a chance — sometimes a big chance — with the hope of making a lot of money in a little bit of time.  I’m not sure this is the most sensible way to go.

Getting back on the subject, the 1.5% version of the Luminex investment plan has a DNI of 0.94%.  This gives you an average weekly profit of around 6.5% (7 x .94) over the life of the plan.  The 1.7% version of the plan, with a DNI of 1.14%, gives you an average weekly profit of around 8%.  In the article we presented in HYIP Insights #23 about what we thought were sensible levels of profit, we suggested aiming for between 5% and 10%.  So, assuming that our suggestion is a good one, Luminex is right on the money.  This really goes hand-in-hand with risk; a sensible profit is one that is lucrative but does not entail undue risk.  In the article in HYIP Insights #12, we suggested that programs offering investment plans with DNIs less than 1% would be strong candidates for long-term survival.  We went on to say that programs offering investment plans with DNIs greater than 2% would be at risk of premature closure.  Again, assuming that our suggestions are good ones, Luminex is right on the money.

The Luminex investment plans break even in around two months, while the total length of the program is six months.  Two months is actually a fairly long period of time in HYIP world.  However, if the program survives that long, you have a four-month period following that where you are making “pure” profit.  How long will the program survive?  You need a crystal ball to answer that question.  However, the best we can say, given the sensible returns that the investment plan pays, is that the program has a high POTENTIAL of being a long-term survivor.

A very important factor to note about the Luminex investment plan is that you begin to recover your investment from day one; you receive daily earnings.  Thus, the portion of your investment that is at risk decreases on a day to day basis.  This is far better than investment plans that don’t return your investment, and sometimes even your earnings, until the end of the plan.  An investor should be very very cautious about putting his money into that type of investment plan, especially if it is a long-term plan.  But that is not an issue with the Luminex plan.

Earnings Examples.

It is easy to predict your earnings from the Luminex investment plan.  In fact, there is a calculator in the website to enable you to do this at the touch of a button if you don’t have your own calculator handy.  But, let’s do a few examples here to show how things work…

First, assume that you invest \$100 in the plan.  Your daily interest will be 1.5% of this which, of course, is \$1.50.  You will receive this every day for 180 days winding up with a total gross return of \$270.  Since this includes your investment, your net profit would be \$170.  Note that you would break even in 67 days, at which time you would have received \$100.50 in returns.

Next, suppose that you invest \$1,000 in the plan.  In this case your daily interest will increase to 1.7% (Actually you need \$1,001 to be eligible for this increase.  But, let’s keep the numbers simple!).  Now your daily interest will be \$17 and by the end of the 180-day period you will have earned \$3,060.  Again, since this includes your \$1,000 investment, your net profit will be \$2,060.  In this case you will have broken even in 59 days at which time you will have received a total of \$1,003.

Conclusions.

Luminex offers a single easy-to-understand investment plan.  You might say that it is two plans rolled into one as the interest rate increases for investments over \$1,000.  The plan is long term and runs for 180 days.  Profitability is more than satisfactory and risk is minimal — at least as far as HYIPs are concerned.  This would appear to give the program a better than average chance of long-term survival.  The investment plan breaks even in around two months.  This is somewhat long.  However, given the relatively high chance for long-term survival of the program, this might not be a problem.

I hope that this information is helpful to you as you weight the pros and cons of this new online investment program.

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