PPF Investment: Do you want to retire as a Crorepati at the age of 55? This PPF trick will guarantee you Rs 1 crore 3 lakh 8 thousand

PPF Investment: The new financial year has started, so there is a need for new financial planning. But the tool is the same old and favourite Public Provident Fund. Whether you take any other guarantee or not, becoming a millionaire is guaranteed with PPF.

PPF Investment: No one wants to grow old before time. But, if it is about early retirement, then probably most people would like to retire peacefully and have plenty of money for the rest of their life. The new financial year has started, so new financial planning is also needed. But, the tool is the same old and favorite Public Provident Fund (PPF). Whether you take any other guarantee or not, becoming a crorepati with PPF is guaranteed. This is such a scheme, which with safe investment will make you a crorepati even before retirement age and then there will be money to spend old age peacefully.

PPF Investment: Follow this Trick

The advantage of PPF Investment is that the scheme can make you a crorepati even before retirement age (60 years). But, for this, one trick has to be followed. If you understand this method, then you can definitely retire 5 years before retirement, that is, retire as a millionaire at the age of 55. After this, you can spend the time left without tension.

It is important to become a horse for the long race

Whether it is a field of sports or investment, the one who lasts long is the horse for the long race. The same has to be followed in PPF as well. Because, you will get good returns from long term investment and that will help you become a millionaire. You can invest up to Rs 1.50 lakh annually in PPF. That means Rs 12,500 every month. Now you have to understand how much investment will have to be made to become a millionaire and for how long…

PPF Investment: Benefit of 7.1% interest

PPF is a scheme of the Central Government. That means completely safe investment. The Finance Ministry decides its interest. Interest is calculated every quarter. Currently, interest is being received at the rate of 7.1%. Investment in it is for 15 years. If you look at the calculation, the total value of investing Rs 12500 per month will be Rs 40,68,209 after 15 years. The investment amount will be Rs 22.5 lakh and the interest will be Rs 18,18,209.

PPF Investment: Now understand the trick

Case No: 1

1. Suppose you are starting investing in PPF at the age of 30.
2. You will have to deposit Rs 12500 every month. After 15 years, the total deposit in PPF will be Rs 40,68,209.
3. You don’t have to withdraw money, the extension strategy will come in handy here. Extend PPF twice in a period of 5 years each.
4. The benefit of extending it for 5 years after 15 years will be that your total amount will increase to Rs 66,58,288 after 20 years.
5. After maturity of 20 years, increase the investment for another 5 years. After 25 years, the amount will be Rs 1,03,08,015. Meaning you will become a crorepati.

Crorepati at the age of 55

So from the above calculation, you can see for yourself that you became a crorepati in 25 years. At the age of 30, you invested Rs 12500 every month in PPF and continued for 25 years. At the age of 55, you will have a corpus of more than 1 crore. The maturity of a PPF account is 15 years.

Case No: 2

If you cannot invest Rs 12500 at once in a month, then reduce it a little. But if you want to become a crorepati at the age of 55, then you will have to start a little earlier.

1. At the age of 25, start putting Rs 10,000 every month in PPF.
2. At the rate of 7.1%, after 15 years you will have a total of Rs 32,54,567.
3. Now give it an extension of 5-5-5 years. After 20 years, the total value will be Rs 53,26,631.
4. Extend it again for 5 years, after 25 years the total value will be Rs 82,46,412.
5. Extend it again for 5 years, after 30 years the total value will be Rs 1,23,60,728.
6. Check, you will become a millionaire this time also at the age of 55.

Case No: 3

Now even Rs 10,000 is too much, then invest only Rs 7500 per month. Here also you will become a millionaire by the age of 55, but you will have to start investing at the age of 20.

1. The total value of Rs 7500 in PPF at 7.1% interest for 15 years will be Rs 24,40,926.
2. If you extend it for 5 years, i.e. after 20 years, this amount will be Rs 39,94,973.
3. If you extend it for another 5 years, i.e. after 25 years, this amount will be Rs 61,84,809.
4. If you extend it for another 5 years, after 30 years, this amount will increase to Rs 92,70,546.
5. If you continue investing for another 5 years, after 35 years the amount will be Rs 1,36,18,714.
6. Now if we calculate, we will see that here also at the age of 55, you will have more than 1 crore. But, the advantage of starting early is that the corpus here will be quite large.

But how did this happen?

Remember, this is the trick to become a crorepati, long term strategy. In PPF investment, you get the benefit of interest on interest i.e. compounding interest. This means that the longer you stay, the more you get the benefit and the amount also gets smaller. This is the trick to become a crorepati.

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