Please read the disclaimer at the bottom of my blog if you wish to continue with the contents below. To adopt a defensive compounded growth strategy, try focusing on lower liquidity, lower risk and higher returns. In my view, all investments comprise a combination of these three factors(trifecta), in which one will always fall short. Here are a few examples to illustrate this: A saving account, gives you higher liquidity(good), lower risk(good) but lower returns(bad). Stocks in general, gives you higher liquidity(good), higher returns(good), but higher risk(bad). Property investments give you higher returns(good), lower risk(good), but lower liquidity(bad). Of course these are pretty much generalizations, as there will always be individual nuances that changes the rubric of your investment. Assuming you buy into a 15 years tenure 5.125% pa bond issued by a stable company(250k capital guaranteed). Invest $2000 on a monthly basis into another 5.125% or higher ......