RE:RE:RE:RE:RE:RE:Return of Capital
I'm not sure what you mean by this:
"If I just put the money in my bank account at 2% and then withdrew it on a monthly basis I would be pretty close to where I am now and there would be no risk attached. Am I wrong?"
I thought it was a fairly simple question so I'm not sure why you're not sure?
If a person had say $30,000 to invest and decided to put it into T.TZS who were paying out a Return of Capital you then get return of 'your' capital (i.e. your $30,000) over a period of time in monthly payments and with a certain amount of risk attached. Presumably when all is said and done you will have received back your $30,000 and hopefully some premium to that amount but no guarantees.
Alternatively you could put the $30,000 into a premium savings and get a small return of interest and just, in effect, transfer a monthly amount out of that account into another account mimicing the "return of capital" until at the end of the transfers you have returned the original capital to yourself and you may(?) have a bit of extra due to interest.
The last "return of capital" plan I was involved in (a Limited Partnership) was a lot of years ago and I put $25,000 into it and when all was said and done and it was wrapped up I calculated what I had received over about 3 or 4 or 5 years (can't remember the time period for sure) and I got back about $23,500 of my original $25,000. So it was not a good investment and I could have done better just doling out a monthly amount to my spending account and I wouldn't have ended up $1500 short.
Just suggesting return of capital type investments can have their risks and that return above the original capital may not always occur or be as attractive as one had hoped over a period of time.
Right now with TZS I am a little bit ahead but not a lot and my remaining investment is still 'speculative' i.e. If I get it all back at today's price I'm slightly ahead, if it drops in value I may be slightly behind but nothing disastrous, unless it was to take a sudden dump, which I would assume is not likely to happen.
i.e. It's 'investing' ---- it carries a risk.