You don't have to educate me regarding the power of compound interest for the simple reason that all my daily expenses are met by interest from my term deposits.
Besides you don't have to leave your CPF as cash in the fund. It should be used to the hilt to buy property. Since the money cannot be spent, what better way to use it than to fund property investments without affecting your monthly cash flow whatsoever. It's a classic example of how you can have your cake and eat it too.
Without the CPF scheme, I can categorically state that I'd be at least $2.5 million poorer today as I would not have had sufficient income to purchase property for investment.
I am of the same working path as you. My current daily expenses are taken care of by the interests from my fixed deposits (not local because the Sinkie banks pay peanuts) and with some surplus as well. Unless I'm into buying big ticket items (occasionally) or some major repairs in my house, otherwise, I don't need to touch my principle.
I have also utilized most of my CPF to co-pay and fully paid for 3 properties (1 for my own occupation) and these 3 properties have more than doubled their values in the years gone by. I was also able to have fully used cash for the payment of the 3 properties but instead, I used that same amount of the cash which the CPF had substituted, to further invest in stocks and shares and these have also increased my holdings with some having more than doubled in their capital appreciation and with good dividends. In addition, I'm collecting healthy monthly rentals to further supplement and build up my principle amount every month because my monthly interests alone are usually sufficient to cover my daily expenses as stated above. Of course I'll also have to watch my expenses in not being over spendthrift unnecessarily, although I still pamper ourselves with 2 or 3 tours annually.
So, in conclusion, there are opportunities to make the funds in your CPF Ordinary Account to indirectly earn more than the mere 2.5% which it gives if only you know how to legally exploit it. Of course, generally, most Sinkies would just use it to pay for their 1 and only property and forget about using it more intuitively thereafter. I've even come across Sinkies who would rather choose to leave some amounts in their CPF than to fully utilize it to the maximum to co-pay for their property, which I find is totally insensible. These Sinkies should not complain now because they had the chance to leave as little as possible in their Ordinary Account, but they chose not to.
