Continued from last article

We saw in the last article the benefits of compounding

and how the systematic investment brings in the fortune.

The main benefit of GPF is its flexibility and no other scheme

has the tenure as long as GPF.

The other schemes do not have the long period with them and

the benefit of compounding will be last if there is no long period.

As discussed in our last article if GPF is used as a powerful investment
with the purpose, there is no match to it.

In the following table , I have worked out a sample table wherein our new recruit

withdraws a sum of Rs 3.00 lakhs for self marriage after 5 years and withdraws

Rs. 15.00 lakhs for son's higher education after 15 years and withdraws Rs. 25.00 lakhs

after 30 years for daughter's marriage.

In the above scenario, still he gets a return of Rs. 3.00 crore on retirement.

year	contribution	Cum contribution	interest	total	withdrawal
1	48000	48000	4224	52224
2	52800	105024	8402	113426
3	58080	171506	13720	185226
4	63888	249114	19929	269044
5	70277	339320	27146	366466	300000
6	77304	143770	11502	155272
7	85035	240307	19225	259532
8	93538	353070	28246	381316
9	102892	484208	38737	522944
10	113181	636126	50890	687016
11	124500	811516	64921	876437
12	136950	1013387	81071	1094457
13	150645	1245102	99608	1344710
14	165709	1510419	120834	1631253
15	182280	1813533	145083	1958615
16	200508	2159123	172730	2331853
17	220559	2552412	204193	2756605
18	242615	2999219	239938	3239157
19	266876	3506033	280483	3786515
20	293564	4080079	326406	4406485	1500000
21	322920	3229405	258352	3487758
22	355212	3842970	307438	4150407
23	390733	4541141	363291	4904432
24	429807	5334238	426739	5760978
25	472787	6233765	498701	6732466
26	520066	7252532	580203	7832734
27	572072	8404807	672385	9077191
28	629280	9706471	776518	10482989
29	692208	11175196	894016	12069212
30	761428	12830641	1026451	13857092	2500000
31	837571	12194663	975573	13170236
32	921328	14091565	1127325	15218890
33	1013461	16232351	1298588	17530939
34	1114807	18645747	1491660	20137406
35	1226288	21363694	1709096	23072790
36	1348917	24421707	1953737	26375444
37	1483809	27859252	2228740	30087992

There may be question about new recruit's own house.

We will discuss that aspect also and there the question of opportunity

Cost lost comes into play.

What is the opportunity cost?

We will discuss