Compound return fallacy is the bigger framework.

— Q: How can a small investor like me “capture” some genuine exponential compound return? This is my personal observation

Time deposit is easy, but the return is never more than 2% in my entire life. Consider CPF-SA/RA . I think CPF calculator shows how  $1 at age 55 grows at 4% compound to become $1.48. In contrast, without compounding, 4% growth over 10Y would become $1.40.

At 4% compound rate, 1.48 vs 1.4 over 10Y — CR is not that impressive. Yet 4% is the highest safe compound return I know — nothing higher than that.

This 4% compound return is earned at a cost — limited liquidity.

— Q: where exactly did I capture compound return?

• mufu: safe funds .. I did capture about 2% compound return, but at that rate, the “miracle” of compound return was /swamped/ by NAV fluctuations.
• rental property? impossible to capture
• CPF: I did capture 4%-5% in SA 🙂