The basic mantra is to start investing as early as possible so that in old age you can accumulate enough wealth by your retirement.
National Pension System: If you want to become a millionaire, then there are many ways to do this such as mutual funds, investing money in the stock market, etc. However, if you don’t have enough time to keep track of the stock market, then the easiest way is to choose an investment option that is market-linked but doesn’t much effort, you can opt for National Pension System (NPS). Also Read: LPG connection will be available without ration card or residence certificate, apply like this
NPS is a market-linked retirement-oriented investment option. Under this scheme, money is invested in two places, Equity i.e. Stock Market and Debt i.e. Government Bonds and Corporate Bonds. During account opening, you can choose how much of the money will go into equity. Usually, up to 75% of the money can go into equity, meaning that you are expected to get slightly higher returns than PPF or EPF. Also Read: Ration card latest update: Add wife and child’s name in Ration Card like this, you will get many big benefits
Scenario 1
Say you want to become a millionaire through NPS. The method is easy, you just need a little trick. Suppose you are 25 years old at present. Say, you invest Rs 5,400 per month in NPS, that is, Rs 180 per day. 60 years is your retirement period. That is, you will invest in it for 35 years. Now suppose you got a return at the rate of 10%. So when you retire, your total pension wealth will be 2.02 crores. Also Rrad: Open fixed deposit account with SBI online like this sitting at home, know step-by-step method
Start investing in NPS
Age: 25 years
Investment: Rs 5,400 per month
Investment period: 35 years
Estimated return 10%
Total invested amount: Rs 22.68 lakh
Total interest received: Rs 1.79 crore
Pension Wealth: Rs 2.02 Crore
Total tax saving: Rs 6.80 lakh
Now, you cannot withdraw all this money at once. You can only take out only 60 percent of it and the remaining 40 percent will have to have to be put in an annuity plan, from which you get a pension every month. If you put 40% of your money in annuity, you will be able to withdraw a lump sum amount of Rs 1.21 crore and assuming the interest is 6%, then every month pension will be Rs 40,000 rupees. Also Read: Good news for SBI farmer customers! Now you can see your Kisan Credit Card Account online on YONO
Pension account
Annuity: 40 percent
Estimated interest rate: 6%
Lump sum amount received: 1.21 crore
Monthly pension: Rs 40,477
Scenario 2
Keep in mind that the sooner you start investing in NPS, the more lump sum amount you will get and the more pension will be made. If you start investing in NPS at the age of 30, then see how much pension will be generated. Also Read: Indian Currency: Do you have 786 series note in your pocket, will make lakhpati in a moment,
Start investing in NPS
Current age: 30 years
Investment: Rs 5400 per month
Investment period: 30 years
Estimated return: 10%
Total invested: Rs 19.44 lakh
Total interest received: Rs 1.01 crore
Pension Wealth: 1.20 crore
Total tax saving: Rs 5.83 lakh
Pension account
Annuity: 40 percent
Estimated interest rate: 6%
Lump sum amount received: Rs 72.56 lakh
Monthly pension: Rs 24,188
So the basic mantra is to start investing as early as possible so that in old age you can at least retire by becoming a millionaire.
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