Title: $1.8M IRA Rollover: Eleanor Secures Retirement with Strategic CD Planning Tagline: $1.8M IRA Rollover: Secure Your Future with CDs and Maximize Tax-Advantaged Growth Problem: After the recent passing of her husband, Eleanor, a 68-year-old retiree, inherited his $1.8 million Traditional IRA. Facing the complexities of Required Minimum Distributions (RMDs) and potential market volatility, Eleanor seeks a safe and predictable investment strategy to supplement her existing Social Security income and manage potential healthcare costs. She’s concerned about erosion of capital due to taxes and inflation and wants to preserve her inheritance for her children. Solution: Using the CD Calculator, Eleanor can analyze various CD term lengths and interest rates to determine a suitable investment laddering strategy. This involves dividing the $1.8 million into multiple CDs with staggered maturity dates, providing liquidity and allowing her to reinvest at potentially higher rates as they become available. By strategically using CDs within her IRA, she defers taxes on the earned interest, allowing for greater compounding and overall portfolio growth. The Tax Equivalent Yield Calculator helps her understand the tax advantage of this approach compared to taxable investments. A portion of the funds are also considered for high-yield bonds, so she can also calculate the Bond Current Yield. ROI: By utilizing a CD laddering strategy, Eleanor can generate a predictable annual income of approximately $72,000 (assuming an average CD rate of 4%), providing a substantial supplement to her Social Security benefits. Deferring taxes on the interest earned within the IRA results in an estimated $15,000 in tax savings annually, allowing her to reinvest those funds for further growth and preserve more of the inheritance for her children. This translates to roughly $450,000 in tax savings over a 30-year retirement period, assuming rates and tax laws remain stable. Description: Plan your Certificate of Deposit (CD) strategy after an IRA rollover to ensure a stable income stream and minimize tax liabilities. This calculator helps you project future value and interest earned, empowering you to make informed decisions about securing your retirement. Category: Client Service