Annuities are how smart people save! This is where you invest a set amount each month...
A little at a time is the way to go!
Here's how it works:
Let's invest $100 each month at 12% compounded monthly...
Beginning of January: You put in $100.
On the last day of January:
They compute your interest...
(Remember that, if we make 12% for the whole year,
we'll make 1% each month.)
On February 1st: You put in another $100.
On the last day of February:
They compute your interest...
On March 1st: You put in another $100.
On the last day of March:
They compute your interest...
On April 1st: You put in another $100.
On the last day of April:
They compute your interest...
On May 1st: You put in another $100.
On the last day of May:
They compute your interest...
On June 1st: You put in another $100.
On the last day of June:
They compute your interest...
