BANK VS LIC RETURN
BANK VS LIC RETURN
RATE OF INTERESTYear Rate Year Rate
1996 13.00 2005 6.001997 11.50 2006 8.001998 11.00 2007 8.751999 10.50 2008 9.502000 10.00 2009 6.502001 9.50 2010 9.002002 6.50 2011 9.252003 6.002004 6.00
Interest Rates
0
2
4
6
8
10
12
14
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Growth in CPI Year CAGR (%) Overall 2/86 – 2/91 7.55 7.55
2/91 – 2/96 10.09 8.70 2/96 – 2/01 7.03 8.18
2/01 – 2/06 4.20 7.21
2/06 – 2/11 8.97 7.55
Longevity Mortality Table AGE Life Expectancy Total 25 52.72 77.72 30 48.01 78.01 35 43.28 78.28 40 38.56 78.56 45 33.93 78.93
50 29.43 79.43 55 25.17 80.17 60 21.18 81.18Source: Mortality Rates of Annuitants in LIC- A (96 – 98) Ultimate
InflationYear Growth Year Growth Year Growth
2/1987 8.92 2/1996 10.08 2/2005 4.202/1988 9.94 2/1997 9.16 2/2006 5.122/1989 9.04 2/1998 5.59 2/2007 6.782/1990 5.37 2/1999 17.88 2/2008 5.522/1991 12.50 2/2000 0.37 2/2009 10.212/1992 13.58 2/2001 2.99 2/2010 13.302/1993 8.70 2/2002 4.71 2/2011 9.222/1994 8.00 2/2003 3.63 9/2011 8.962/1995 10.19 2/2004 3.34
IndiaIndiaTodayToday
2010Developing
Country
1990Undeveloped
Country
2030Developed
Country
Interest RatesInterest Rates14% to 16%14% to 16%
Interest RatesInterest Rates 6% to 8%6% to 8%
Interest RatesInterest Rates2% to 4%2% to 4%
DEVELOPED COUNTRIES
Estimate future expenses
• Assuming that at present , total monthly expenses are : 12,000, i.e. 1,44,000 p.a.
• Also assuming an annual inflation rate of 7.55%• After 10 years, the annual expenses are likely to be
2,98,172 i.e. 24,847 p.m.• After retirement, assuming the same rate of
inflation, and after 25 years, the total annual expenses are likely to be 18,39,615, i.e. 1,53,301 p.m.
AVERAGE RATE OF INTEREST FOR LAST 7YEARS
AVERAGE RATE OF INTEREST FOR LAST 10 YEARS
7.6% ONLY
TILL DATE
• BANK INTEREST IS TAXABLE • ATTRACTING –TDS• INTEREST ADDED TO YOUR INCOME
INVESTMENT OF 10LAKHS IN BANK FDFOR 3YEARS
• @ 9.75 % -13,21940 –POST TAX @22% 12,51,117• @ 9%-12,95029 –POST TAX-12,30,122• @8.5% -12,77289-POST TAX -12,16,285• @8.25%-12,68480-POST TAX -12,09,414• @8%-1259712-POST TAX-12,02,575• @7.5%-12,42,297-POST TAX-11,88,992
AVERAGE RETURN WILL COME DOWN• @ 9.75 % -POST TAX @22% 12,51,117-Effective irr-7.75%• @ 9%-12,95029 –POST TAX-12,30,122-Effective irr-7.14%• @8.5% -12,77289-POST TAX -12,16,285-Effective irr-6.74%• @8.25%-12,68480-POST TAX -12,09,414-Effective irr-6.54%• @8%-1259712-POST TAX-12,02,575- Effective irr-6.34%• @7.5%-12,42,297-POST TAX-11,88,992-Effective irr-5.93%
Invest in Jeevan SurakshaENJOY LIFE TIME GURANTEED RETURN- NO MARKET
FLUCTUATION-NO TDS• ONE TIME INVESTMENT-1000785 • S A-11,00,000( OFFERING LIFE TIME COVER ALSO)• BONUS + 3% EXTRA- 80586 • TOTAL-11,80586 • RETURN ANNUAL-87364 - @8.73% (AGE 50 YEARS)• RETURN ANNUAL-87953.8 @ 8.79%(AGE 55 YEARS)• RETURN ANNUAL- 88662.4 @8.86% (AGE 60 YEARS)• RETURN ANNUAL-89488 @8.94% (AGE 65YEARS)• RETURN ANNUAL-90433 @9.04%(AGE 70 YEARS)
YOU ARE THE BEST JUDGE
DECIDE WHETHER IT IS PRUDENT TO RUN EVERY YEAR FOR BETTER RATE AS INTEREST RATE WILL COME DOWN IN
FUTUREOR
STUDY DATA & INVEST IN SAFE INSTRUMENTS OFFERING
GOOD RETURN OVER A TIME HORIZON