Self
planned Reverse EMI after Sixty.
Deposit
interest rates are falling. Need for funds increases. How to bridge the gap? Keeping
all the savings in Fixed and Cumulative Deposits may not be a wise plan especially
for Senior Citizens. Interest yield is not comfortable leading to shortage of liquidity.
After allocating a reasonable amount in interest yielding Deposits, one should
think of drawing both interest and principal that will increase the cash flow
and make an efficient use of their resources in their life time as Reverse EMI.
From the
amount deposited a desired percentage is drawn every month which is more than
the normal interest payable for that deposit. While interest is added to the
principle a fixed Reverse EMI is paid to the depositor. The scheme is flexible
allowing varying the percentage of the withdrawal on the deposit amount. In
blocks of three or five years the balance amount from the original deposit may
be continued for a further period of three years or topped up to the desired
value. TDS is only for the interest credited and not fog the REMI amount.
To maintain
a high Utility Quotient, one should enjoy the fruits of the hard earning and
not necessary to block a large amount that yields a meagre amount. A model
working sheet is given below:
REMI may be
flexible varying like 1.25, 1.5, o 1.75% per month on the invested amount.
8.75%
|
1.25%
|
p.m.
|
||||
Year
|
Investment
|
Principal
|
Interest
|
Reverse
|
TDS
|
Closing
|
Received
|
Credited
|
EMI
x 12 |
10%
|
Balance
|
||
1
|
10,00,000
|
65,420
|
84,580
|
1,50,000
|
8,459
|
9,26,121
|
2
|
9,26,121
|
72,122
|
77,878
|
1,50,000
|
7,788
|
8,46,211
|
3
|
8,46,211
|
79,373
|
70,627
|
1,50,000
|
7,063
|
7,59,775
|
4
|
7,59,775
|
87,215
|
62,785
|
1,50,000
|
6,280
|
6,66,280
|
5
|
6,66,280
|
95,699
|
54,301
|
1,50,000
|
5,432
|
5,65,149
|
3,99,829
|
3,50,171
|
7,50,000
|
35,022
|
8.75%
|
1.50%
|
p.m.
|
||||
Year
|
Investment
|
Principal
|
Interest
|
Reverse
|
TDS
|
Closing
|
Received
|
Credited
|
EMI
x 12 |
10%
|
Balance
|
||
1
|
10,00,000
|
96,652
|
83,348
|
1,80,000
|
8,335
|
8,95,013
|
2
|
8,95,013
|
1,06,176
|
73,824
|
1,80,000
|
7,383
|
7,81,454
|
3
|
7,81,454
|
1,16,479
|
63,521
|
1,80,000
|
6,352
|
6,58,623
|
4
|
6,58,623
|
1,27,624
|
52,376
|
1,80,000
|
5,240
|
5,25,759
|
5
|
5,25,759
|
1,39,679
|
40,321
|
1,80,000
|
4,033
|
3,82,047
|
5,86,610
|
3,13,390
|
9,00,000
|
31,343
|
