Monthly Annuity Interest Per $100,000 Annualized | $4,100 annually can equal $4,025 if taken monthly

The monthly interest withdrawal sometimes leaves clients confused and concerned if they have calculated the income based on a simple annual return and then divided by 12. A logical way to look at it but not financially correct.Show more

A client with $100,000 offered a rate of 4.10% may just do a simple calculation of 4.10% of $100,000 = $4,100 and then divided by 12 = $341.66 per month. However, when the income does start, it is lower, changing monthly and at the end of the year is only $4,024.91 not $4,100.

Monthly Annuity Interest Per $100,000 Annualized is not the same as annual percentage rate.

$4,100 of income taken annually is $4,025 if taken monthly. Interest earns or does not earn interest.

PDF cheat sheet Monthly Interest Per $100,000 Annualized:
https://img1.wsimg.com/blobby/go/369500a8-c330-416e-9301-24889d16b18d/downloads/Monthly%20interest%20per%20%24100%2C000_4-18-11.pdf

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This material is for informational, educational & entertainment purposes.
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