PPF Annual Package: A trend that is becoming popular among the youth today is early retirement after achieving financial freedom. Many people do not want to retire due to the pressure of working in private jobs or sometimes they want to take a break after working for years. But due to lack of regular income, they are unable to do so. But there is an easy way through which you can prepare your own annual package. The government savings scheme Public Provident Fund will help you in this.

PPF: First you have to create a big fund

The maturity period of Public Provident Fund is 15 years. But you can extend it for 5 years at a time as long as you want. There is also a rule that after maturity, you can extend it by continuing to invest in it or you can extend it without investing anything. After maturity, the scheme is extended for 5 years at a time. Using this, you can create a big corpus and also earn regular income in future.

PPF : Create a fund of Rs 1 crore

After the PPF scheme matures, if you extend it twice for 5 years and 5 years each, you can create a fund of Rs 1 crore through it. However, for this you will have to make a fixed investment in it in a financial year.

Deposit in one financial year: Rs 1.50 lakh

Interest rate: 7.1% p.a.

Total deposit in 15 years: Rs 22,50,000

Total fund after 15 years: Rs 40,68,209

On extending 2 times

Total deposit in 25 years: Rs 37,50,000

Total fund after 15 years: Rs 1.02 crore.

What to do after creating a corpus

If you start investing at the age of 25, then by the age of 50 you can create a fund of Rs 1 crore. After collecting a fund of Rs 1 crore, if you want to earn monthly from it, then you can extend it and take advantage. If you have extended the scheme for 5 years without investing anything, then you will keep getting annual interest on the closing balance. At the same time, once every year you can withdraw any percentage of the entire amount. It can be up to 100 percent.

Here, you will get 7.1 percent annual interest on a closing balance of Rs 1 crore. This will be Rs 7,31,300 in a year. You can withdraw this entire interest amount once in a year. If you divide it into 12 months, it will be around Rs 60,000 per month. There will be no tax on this withdrawal. You can do this by extending it after every 5 years.

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