National Pension System: If you want to become a Crorepati, there are many ways, you can buy mutual funds, invest in the stock market. But if you do not have that much time, then choose the investment option that is also market linked and you do not have to worry too much. In such a situation, you can think about National Pension System (NPS). You can become a millionaire by investing in NPS.
NPS is a market linked retirement oriented investment option. Under this scheme, the money of NPS is invested in you in two places, Equity i.e. Stock Market and Debt i.e. Government Bonds and Corporate Bonds. You can decide how much money of NPS will go into equity only during the opening of the account. Usually up to 75 per cent of the money can go into equity. This means that in this you expect to get a little more return than PPF or EPF.
180 rupees investment per day
According to media reports, now if you want to become a millionaire through NPS, then its method is very easy, just a little trick is needed. Suppose you are 25 years old at this time. If you invest 5400 rupees a month in NPS, that is 180 rupees for the day. 60 years is the period of your retirement. That is, you will invest in it for 35 years. Now suppose that you got a return at the rate of 10 percent. So when you retire, your total pension wealth will be 2.02 crores.
NPS bookkeeping of investment
Now you cannot withdraw all this money at once, you can withdraw 60 percent of it, you have to put the remaining 40 percent in an annuity plan, so that you get a pension every month. Suppose you put 40% of your money in annuity. So you will be able to withdraw a lump sum of Rs 1.21 crore and assume that if the interest is 6 percent, then every month the pension will be 40 thousand rupees.
Investing at the age of 30
Just keep in mind that the sooner you start investing in NPS, the more lump sum will be received and pension will also be more. If you start investing in NPS at the age of 30, then see how much pension will be made.
NPS investment accounts
Your total investment will be Rs 19.44 lakh and interest on it will be Rs 1.01 crore. In this way, the pension wealth will be Rs 1.20 crore and tax savings and Rs 5.83 lakh. At the same time, if you calculate the pension, then you will get around 72.56 lakh rupees according to 40% annuity and the estimated interest rate of 6%. In this way your monthly pension will be Rs 24,188. So the basic mantra is to start investing as soon as possible, so that at least you retire as a Crorepati in old age.