Need 1 crore at the age of 46? This government scheme can make you a millionaire, know the complete mathematics:

News India Live, Digital Desk: Are you tired of working and want to retire before the age of 50 and live a tension-free life? Do you want to have more than Rs 1 crore in your bank account when you retire? As nice as this dream may seem, it may seem difficult to turn it into reality, but it is not impossible.

If you follow some discipline and proper planning, then a powerful scheme of the government can make your destination easier. The name of this scheme is Public Provident Fund (PPF)This is a magic lamp which can convert your small investment into a huge amount without any market risk,

PPF’s millionaire making plan

Let us understand what is the complete mathematics of becoming a millionaire at the age of 46 through PPF. For this, it is most important that you start investing as soon as possible.

• How much to put in every month: You can deposit a maximum of Rs 1.5 lakh every year in PPF. That means approximately Rs 12,500 every month.
• First milestone of 15 years: PPF account matures in 15 years. If you invest Rs 1.5 lakh every year from the age of 21, then after 15 years (i.e. at the age of 36), at today’s interest rate of 7.1%, your account will yield around Rs. Rs 40.68 lakh Will be collected.
• The real magic begins now: Most people withdraw money after completion of 15 years, but you do not have to do this. You have to extend your PPF account twice more for 5 years each and continue your investment.
• Journey of next 10 years: When you continue to invest Rs 1.5 lakh every year for the next 10 years (i.e. total 25 years), then Rs 1.03 crore in your PPF account at the age of 46 An amount of more than Rs. 100,000 must have been deposited.

This is the wonder of compound interest (Power of Compounding), where you get interest on your interest and your money grows at double the speed.

Advantages and disadvantages of investing money in PPF

Before making any investment, it is important to know both its aspects.

What are the benefits?

1. Save only tax: There is no tax on the money invested in PPF, the interest received on it and the entire amount received on maturity.
2. Habit of discipline: Its long duration motivates you for regular savings and investments.

What are the disadvantages?

1. Investment Limit: You cannot invest more than Rs 1.5 lakh in a year.
2. Interest rate not fixed: The government can change its interest rate every three months, which may have a slight impact on your returns.

If you are a young person who is just starting a job and is looking for a safe long-term investment option, then PPF can be the best way to fulfill your dream of becoming a millionaire.