Title: Inheriting $1 Tagline: Inheriting $1.8M IRA: Determining Sustainable Withdrawal Rates & Investment Risk using Cost of Equity Problem: Following the recent loss of her husband, Eleanor, a 68-year-old retiree, inherited a $1.8 million Traditional IRA. She is overwhelmed by the responsibility of managing the funds and unsure how to determine a safe withdrawal rate to supplement her existing social security income. Eleanor is risk-averse and wants to avoid outliving her savings. She needs a way to understand the potential returns and associated risks of different investment options within her IRA so she can make informed decisions about asset allocation and sustainable withdrawals. She worries that simply relying on generic "retirement calculators" doesn't account for her specific risk tolerance and the specific investments within the IRA. Solution: By utilizing the Cost of Equity Calculator with both CAPM and Dividend Discount Model, Eleanor can analyze potential investments in her IRA, understanding their risk relative to the market (CAPM) and their expected return based on dividends (Dividend Discount Model). Comparing the cost of equity to projected returns helps Eleanor determine if an investment aligns with her risk tolerance and supports a sustainable withdrawal rate. Further, using the Tax Equivalent Yield calculator helps her understand the after-tax impact of potential investment income, optimizing her withdrawal strategy. Using the Bond Yield Calculator, Eleanor can assess fixed income options to balance risk within her portfolio. ROI: By strategically allocating her IRA based on risk assessments from the Cost of Equity Calculator, Eleanor could potentially increase her portfolio's longevity by 15%, allowing for an additional $36,000 in annual withdrawals without increasing her risk profile. Furthermore, a more informed asset allocation could save her up to $5,000 annually in unnecessary tax liabilities by optimizing her withdrawal strategy in conjunction with the Tax Equivalent Yield Calculator. Description: Navigating widowhood & maximizing your inherited IRA? Use our Cost of Equity Calculator to assess investment risk and build a sustainable withdrawal strategy. Category: Lead Gen