I read the news that a majority of CPF fund holders who make use of their special accounts for investments have not managed to obtain better returns than the interests paid by the special account. I am not surprised at this and I have always advocated investors to not utilize their CPF Special account monies for investing in the stocks markets as they will be “giving up” and almost investment-risk-free investment which earns around 4.5% dividends yearly to the vagaries of the stocks markets.

I believe investors who do the above aim higher returns. The statistics bear the fact that it is “hard to beat the stocks markets” and I really think that leaving your CPF monies, with the 4.5% dividend yields compounding is an excellent investment proposition. Newton has said that compounding is the eighth wonder of the world, so why should CPF investors defy Newton? With …