Invest in STOCK or CPF-SA (Part2)

 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.

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