Ferrari Me (Ferrarilim)

 Still thinking as I am walking... Investor2: invested $1M in CPF-SA over 33 years.  It maybe for couples or for your 2 to 3 children scenerio: If I invested in CPF-SA with $1000,000!! of course we can't. But to scale up for illustration: (($1,000,000×1.04^33) - $1,000,000) over 33 years = $2,648,000 <<--- net gain from compounded SA balance. - At 4% risk free interest. - After 33 years, based on 4% p.a. interest, compounded over 33-years. - SA Balance grows to $3.65M !! Average effective yield = (($1,000,000×1.04^(33)) −$1,000,000)÷$1,000,000×100 ÷33 = *8% p.a. (from our CPF-SA)* ~~~~ Comparing your $2.5M vs $2.65M, maybe our SA is slightly more powerful. Result: Average amortised yield: Stockist: 2.85% p.a. CPFist: 8% p.a.

Thinking aloud... see if I am correct. This illustration of stock investing with no-sell button versus putting money in our CPF-SA account. OVER 33 YEARS. Investor1 : Stock portfolio, $1M over 33 years, no-sell button: 1. Your Stocks portfolio maybe $2.5M, but many stocks, esp banks, have risen so much and these dividends are reinvested to build up $2.5M, assume. Your Principal invested = $1M. 2. To-date, your coupled annual dividend is $100,000 p.a. 3. Over the span of your 40-years investing, no SELL button, assume that you started your stock investment from Age 30. 4. Total no. of years in market: 33 5. Average yield over 33 years: 1,000,000×(1.0285^(33) = $2.5M, average yield = 2.85% p.a. 6. Real Minion: Capital gain: $2.5M - $1M = $1.5M or   average amortised gain = $1,500,000÷$1,000,000×100% / 35 = 4.5% p.a.  *Effective yield = 2.85% p.a.* That's compare with PART2 of someone who invested solely in CPF-SA for same 33-years.