PPF Account -RETIREMENT CORPUS MONEY

Dear All,

We all know that one day we will be retireing from our jobs for sure.

So which is the most important utility we need to have ? ....any guess ?

The most important utility is : RETIREMENT CORPUS MONEY !!

Its a cruel fact that when we will retire we will not have any fixed pension plan as Govt of India

has scrapped the same...so what to do then ? Complain ? No... then what ? TAKE ACTION and plan

out for your rainy days ahead coming after 20-30 years.

Now its easier said than done....fine. So dear friends I have attached a wonderful retirement corpus generating scheme

(BTW: whats a Corpus ?.....simply understand : UNTOUCHED - APPRECIATED MONEY) for all of you..hence the mail is sent to ALL_WADALA!! The wonderful scheme is PPF [Public Provident Fund] which appreciates your hard-earned money over the years

using POWER-OF-COMPOUNDING, also gives you full benefit under Income Tax-Sec 80C.

Key features:

[*]W.E.F 1-DEC-2011: PPF Limit is enhanced to Rs.1,00,000/- per Financial Year. earlier its was Rs.70,000/-

[*]Interest rate Enhanced from 8% to 8.6%

[*]Full Benefit under SEC-80C

[*]Assured money with appreciation as GOVT of India credits Interest.

[*]Full Benefit Can be exploited only when you Invest on/between 1-5 APRIL, as interest calculation of PPF is done PER-FY-BASIS.

[/list]

Now after reading all the above theory....I would like you to download the Excel - Attachment where I have shown the actual PPF

illustration where you can see how after Investing Rs.1lakh on every 1-APRIL of each Financial Year with discipline you can generate

and reap excellent benefits.

Remember Financial Planning / investments should NEVER be an emotional decision, but should be based on mathematics!!

Happy Investing...

PPF 1L PA @ 8.6%

TERM

START DATE

START AGE

END DATE

END AGE

AMOUNT PA

INTEREST PA

CORPUS

1

1-Apr-12

29

31-Mar-13

30

100000

8600.00

108600.00

2

1-Apr-13

30

31-Mar-14

31

100000

17939.60

226539.60

3

1-Apr-14

31

31-Mar-15

32

100000

28082.41

354622.01

4

1-Apr-15

32

31-Mar-16

33

100000

39097.49

493719.50

5

1-Apr-16

33

31-Mar-17

34

100000

51059.88

644779.37

6

1-Apr-17

34

31-Mar-18

35

100000

64051.03

808830.40

7

1-Apr-18

35

31-Mar-19

36

100000

78159.41

986989.82

8

1-Apr-19

36

31-Mar-20

37

100000

93481.12

1180470.94

9

1-Apr-20

37

31-Mar-21

38

100000

110120.50

1390591.44

10

1-Apr-21

38

31-Mar-22

39

100000

128190.86

1618782.30

11

1-Apr-22

39

31-Mar-23

40

100000

147815.28

1866597.58

12

1-Apr-23

40

31-Mar-24

41

100000

169127.39

2135724.97

13

1-Apr-24

41

31-Mar-25

42

100000

192272.35

2427997.32

14

1-Apr-25

42

31-Mar-26

43

100000

217407.77

2745405.09

15

1-Apr-26

43

31-Mar-27

44

100000

244704.84

3090109.93

LOCK-IN OVER

16

1-Apr-27

44

31-Mar-28

45

100000

274349.45

3464459.38

17

1-Apr-28

45

31-Mar-29

46

100000

306543.51

3871002.89

18

1-Apr-29

46

31-Mar-30

47

100000

341506.25

4312509.14

19

1-Apr-30

47

31-Mar-31

48

100000

379475.79

4791984.93

20

1-Apr-31

48

31-Mar-32

49

100000

420710.70

5312695.63

21

1-Apr-32

49

31-Mar-33

50

100000

465491.82

5878187.45

22

1-Apr-33

50

31-Mar-34

51

100000

514124.12

6492311.57

23

1-Apr-34

51

31-Mar-35

52

100000

566938.80

7159250.37

24

1-Apr-35

52

31-Mar-36

53

100000

624295.53

7883545.90

25

1-Apr-36

53

31-Mar-37

54

100000

686584.95

8670130.85

26

1-Apr-37

54

31-Mar-38

55

100000

754231.25

9524362.10

27

1-Apr-38

55

31-Mar-39

56

100000

827695.14

10452057.24

28

1-Apr-39

56

31-Mar-40

57

100000

907476.92

11459534.17

29

1-Apr-40

57

31-Mar-41

58

100000

994119.94

12553654.11

30

1-Apr-41

58

31-Mar-42

59

100000

1088214.25

13741868.36

31

1-Apr-42

59

31-Mar-43

60

100000

1190400.68

15032269.04

32

1-Apr-43

60

31-Mar-44

61

100000

1301375.14

16433644.17

33

1-Apr-44

61

31-Mar-45

62

100000

1421893.40

17955537.57

34

1-Apr-45

62

31-Mar-46

63

100000

1552776.23

19608313.80

35

1-Apr-46

63

31-Mar-47

64

100000

1694914.99

21403228.79

36

1-Apr-47

64

31-Mar-48

65

100000

1849277.68

23352506.47

 

[Swaswati Borpuzari]

A Public Provident Fund (PPF) account is a popular long-term savings instrument in India that is designed to help individuals build a retirement corpus. Offered by the government, it provides a combination of tax benefits, a guaranteed return, and the ability to save for a secure future. By investing in a PPF account, individuals can contribute a minimum of Rs. 500 and a maximum of Rs. 1.5 lakh per year, with the flexibility to make deposits in lump sums or in installments. The interest earned on the PPF account is compounded annually, and it is currently set at 7.1% (as of the latest update). This compound interest feature allows the corpus to grow significantly over the 15-year tenure of the account, which can be extended in blocks of 5 years thereafter. The contributions made to a PPF account are eligible for tax deduction under Section 80C of the Income Tax Act, further enhancing its attractiveness as a retirement planning tool. Additionally, the maturity amount and interest earned are tax-free, making it an excellent choice for those looking to maximize their savings while minimizing their tax liability. By consistently contributing to a PPF account, individuals can ensure that they have a substantial retirement corpus that can provide financial security and peace of mind in their golden years.