Public forecast fund for investment: Public Provident Fund (PPF) is mainly used for long -term investment and the diversification of an investment portfolio. It is a fixed interest rate investment scheme that sacrifices an interest rate of 7.1 percent composed annually. The account comes with an expiration period of 15 years, which can be extended for unlimited blocks or 5 years each. In the long term, the scheme can be used not only to generate a tax -free retirement corpus, but also tax free income per month.
Similarly, a regular investment in PPF can generate an estimated corpus of taxes or RS 78,000 to 55 years of age and a monthly life income 49,000 of next year. Know how possible.
PPF Minimum account and maximum deposits
A PPF account can be opened in a bank or post office with a minimum investment of RS 500.
This is also the minimum deposit amount used to continue the PFF account.
The maximum deposit in a financial year is RS 1.50 Lakh.
PPF withdrawal conditions
The account comes with an expiration period of 15 years, but 1 withdrawal every financial year is allowed after 5 years, excluding the year opening the account.
The retired amount must be up to 50 percent of the balance at the end of the previous fourth year or at the end of the previous year, which is lower.
PPF maturity rules
After a expiration period of 15 years, the entire amount of PPF can be withdrawn.
If the account holder moves, you can extend the unlimited block account or 5 years each.
Duration The extension may or may not contribute to your PPF account.
However, in any case, they will continue to obtain the amount of interest.
PPF retirement rules after expiration
In an extended account without deposits, the PPF interest rate will be applicable and the payment of any amount can be taken any time or can take 1 withdrawal in each financial year.
In an extended PPF account with deposits, 1 withdrawal can be tasks in each financial year subject to a maximum limit of 60 percent of the balance credit at the time of expiration in the 5 -year block.
PPF calculations for history
We will calculate how a regular investment in PPF can generate an estimated corpus of taxes or 78,00,000 rupees at 55 years of age of an investor and how they can obtain an estimated monthly income of RS 49000 for the life of next year.
1.5 Lakh investment in PPF for 15 years
An account holder can make an investment of RS 1,50,000 each financial year between April 1 to 5 for 15 years.
In 15 years, the total investment will be RS 22,50,000, the estimated interest will be RS 18.18.209 and the estimated corpus will be RS 40.68.209.
3 PPF extensions or 5 years each
From this point, the PPF Hollow account needs to extend its account 3 times in a row, for a total of 15 years with 5 years of each block.
Look how your corpus will see every 5 years.
In 20 years, the total investment will be RS 30.00,000, the estimated interest will be RS 36,58,288 and the estimated corpus will be RS 66,58,288.
In 25 years, the total investment will be RS 37,50,000, the estimated interest will be RS 65,58,015 and the estimated corpus will be RS 1.03.08,015.
In 30 years, the total investment will be RS 45,00,000, the estimated interest will be RS 1.09.50.911 and the estimated corpus will be RS 1.54.50.911.
What they may need to do
From that moment, they can take an additional extension of 5 years but stop investing.
At that stage, they can withdraw their PPF Corpus of 50 percent.
The estimated retired corpus, therefore, will be RS 77.25.455.5.
Here, if a person begins his PPF investment at 25 years of age, he can withdraw this amount at 55 years of age.
Let the corpus grow for 1 year
Now, they can allow the RS 77.25.455.5 corpus to grow at an interest rate of 7.1 percent for a year.
The interest in this amount will be RS 5.48,507.34.
The accumulated corpus, therefore, will be RS 82,739,628.4.
What they need to do from here
If they only withdraw the amount of the interests of this corpus, the annual withdrawal can be RS 5.87.451.36, which will be equal to RS 48,954.28.
This income they can obtain for life from 56 years.
What will happen to your PPF Corpus?
Since they are not contributing to the periods of duration of their PPF account, they can withdraw the total duration of the amount or can leave it for the nominee after death.
(Discharge of responsibility: This is not investment advice. Make your own due diligence or consult an expert for financial planning).