As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

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Sunday, 20 January 2019

Compound Interest is not the same as Compound Returns (4)

Read? Compound Interest is not the same as Compound Returns (3)

Every time when Uncle8888 read something similar like this in the cyber world .. he smiles!

"However, many forget the power of compounding when it comes to investing, helping you achieve financial freedom at an earlier age. Enjoy your retirement, start investing today!"

Some folks need to learn from Crash Got Sound that compounding investment return is NEVER the same as compounding interest as savers!

Albert Einstein reportedly said it. “Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it.”


  1. Hi Uncle8888,

    People forget that compounding market returns is after many years of both ups and DOWNS, and with consistent RE-INVESTING of dividends. ;)

    When SGX recently ownself praise ownself about STI having better total 10-yr returns (CAGR of 9.2%) than Hong Kong and China .... I wonder how many people enjoyed that compounding returns? :)

    Even if lucky enough to start at the trough of the GFC in early 2009, many would have sold in the big corrections in 2011 or 2015.

    Many who started before GFC will have quickly sold off in 2013-2014 after "breakeven".

    Even for those who stayed in from 2009 till today, many will not have re-invested their dividends, and thus probably not achieving that 9.2% ;)

    1. So easy to praise ownself on theoretical investment return.

  2. Compounding interest is indeed very powerful.

    Just look at your CPF lol.

    Compounding investment is even more powerful provided years after years, some years U make some money some years U don't make any but U don't lose either - only a little to inflation.

    That's my aim

  3. FYI, some one has worked out CPF pays "like flat interest rate" i. e. interest for every month is total up at the end of the year.

    No accumulative paying U the portion of interest on the interest monthly.

    No compound interest paid?

    i am not sure it is the truth or not as i have not worked it out on the interest paid to my CPF?

    If it is the truth, imagine how much more money we will get?

    Can anyone good at maths. confirm for us once and forever!


  4. Replies
    1. i think it is not the same like FD if one is still working BUT STILL NO COMPOUNDING OF INTEREST PAYMENT.

      So it is confirmed CPF doesn't pay compound interest.


    2. Walau. It is yearly compound like you renew FD with capital and interests together as new capital.

    3. Ya lor, talking about compound interest can mean so many different things in terms of time factor,

      Daily, weekly, monthly, to yearly - to no , no great, great grand son's time for banking because auto renewal for banking is limited to 5 years only?


      Of course

    4. Of course our G can choose how our interest in CPF is compounded.

  5. CPF website long time ago already say: interest computed monthly, credited & compounded annually.

    Sorry, no monthly compounding LOL!

    Of course we all want daily or hourly compounding! Kekeke!!!

  6. Daily compounding we no need to invest. Every month top up cpf

    1. LOL, I will try everyday like overnight placement fund earning interest.


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