Thursday, April 23, 2009

PPF as Retirement Planning tool

I have started seeing PPF , as part of the bigger picture and would request readers to do that . Yes , contributions to the PPF , help you save tax as part of 80C . But if you see PPF from the context of retirement planning , that would be a great tool too. PPF could be your debt component of the retirement planning along with may be Pension plans,MF,Direct equity exposure , which form your equity component of retirement planning .

What better instrument to be in for retirement planning , then something which could compound your contributions over 15 year period to start with and which can be extended to keep compounding until you retire .

You will find people who say that, Equity exposure , would be the most appropriate way for retirement planning , i would not disagree , but feel that PPF would de-risk to some extent your retirement corpus

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