Hi guys, Welcome to the Advanced Video Search Engine, and you are watching Should I prefer PPF or NPS for Retirement Planning? NPS versus PPF when you have 30 Years to Retire. That video is uploaded by Shankar Nath at 2023-05-22T20:21:18-07:00. We are promoting this video only for entertainment and educational purpose only. So, I hope you like & enjoy it. [60ALIIapZ5g]
| Name | Should I prefer PPF or NPS for Retirement Planning? NPS versus PPF when you have 30 Years to Retire |
| Video Uploader | Video From Shankar Nath |
| Upload Date | This Video Uploaded At 23-05-2023 03:21:18 |
| Video Discription | Subscribe to Shankar's newsletter 👉 https://shankarnath.substack.com/ Are you confused about whether to opt for an equity and debt instrument like the National Pension System (NPS) or a fixed income product like the Public Provident Fund (PPF) for creating your retirement corpus? Don't worry, you're not alone. Many people face this dilemma when planning for their retirement. In this video, we will compare NPS and PPF from a mathematical standpoint to help you make an informed decision. Let's start by addressing a common concern that people have with NPS—the provision that states you can only withdraw 60% of your NPS accumulation at retirement, while the remaining 40% needs to be invested in an annuity. This provision often raises questions and doubts. However, when we examine the numbers, you might be surprised at the outcome. Let's consider the scenario of a 30-year-old individual who has 30 more years until retirement. If this person invests 1 rupee in a PPF account, which offers an annual interest rate of 8%, that rupee would grow to 10.07 rupees over the span of 30 years. On the other hand, if the same rupee is invested in NPS, which has an average return of 10%, it would grow to 17.45 rupees. The difference between these two growth rates is indeed significant. However, what's truly remarkable is that 60% of the accumulated amount in NPS, which amounts to 17.45 rupees, comes to 10.47 rupees. Surprisingly, this is higher than what the PPF scenario would have given us if we had invested the same amount. This revelation should give you some food for thought. While the provision of withdrawing only 60% of your NPS accumulation might initially seem restrictive, the higher growth rate compensates for it. Ultimately, it can potentially result in a larger corpus compared to investing solely in PPF. It's important to consider that both NPS and PPF have their own unique features and benefits. NPS is a market-linked instrument that offers the opportunity to invest in equities and debt, which can lead to higher returns in the long run. However, it also comes with certain risks associated with market fluctuations. On the other hand, PPF is a fixed income product that provides stable and guaranteed returns, making it a safe option for risk-averse individuals. Also remember, this comparison is based on mathematical calculations and assumes historical average returns. Actual returns may vary, and it's important to conduct thorough research and seek professional advice before making any investment decisions 🙌 Join my community on: ‣ Youtube: https://www.youtube.com/@shankarnath ‣ Instagram: https://www.instagram.com/shankarnathofficial/ ‣ LinkedIn: https://www.linkedin.com/in/shankarnath/ ‣ Twitter: https://twitter.com/shankarnath 🔥 Top Videos on My Channel (don't forget to subscribe) ‣ 9 Retirement Planning Strategies for Regular & Safe Income : https://www.youtube.com/watch?v=BH5r_CvsbKw ‣ Build a Monopoly Stocks Portfolio (27% Return) : https://www.youtube.com/watch?v=R2KM1SJuED0 ‣ Coffee Can Investing : https://www.youtube.com/watch?v=uZERd4pJnRY ‣ Peter Lynch's Strategy of Stock Picking : https://www.youtube.com/watch?v=J9rbQDCo-l8 #nps #ppf #retirementplanning Disclaimer: I am not a SEBI registered investment advisor or research analyst. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented 60ALIIapZ5g |
| Category | Education |
| Tags | shankar nath | beginners buck | shankarnath | sankarnath | akshat shrivastava | pranjal kamra | soic | finology | rachana ranade | sahil bhadviya | parimal ade | vivek bajaj | labour law advisor | warren buffett | investing | investment | nifty | sensex | stock markets | mutual funds | nps | ppf | public provident fund | national pension system | ppf vs nps | ppf versus nps | nps versus ppf | nps vs ppf | nps v ppf | ppf v nps | retirement planning |
