Title: Widow Inherits $1.8M IRA: Can Her Liquid Assets Cover 180 Days of Expenses? Tagline: Widow Inherits $1.8M IRA: Can Her Liquid Assets Cover 180 Days of Expenses? Problem: Eleanor, a 68-year-old recent widow, inherited a $1.8 million Traditional IRA from her late husband. While seemingly substantial, she's concerned about managing it effectively, particularly given her fixed monthly expenses of $7,500 and a desire to avoid immediately liquidating the IRA to cover those expenses. She wants to understand how long her current accessible assets (cash, short-term CDs outside the IRA) of $45,000 can realistically cover her living expenses before she needs to start taking distributions from the IRA, potentially incurring tax penalties. She also worries about unforeseen expenses like home repairs and wants a safety net. Solution: By utilizing the Defensive Interval Ratio Calculator, Eleanor can quickly determine how many days her $45,000 in liquid assets will cover her $7,500 monthly expenses. This will help her gauge the immediate liquidity risk and potentially adjust her investment strategy within the IRA to ensure a more balanced approach between growth and accessibility. The calculator provides a clear, quantifiable measure of her financial safety net. ROI: Eleanor discovers her current liquid assets cover approximately 180 days (6 months) of expenses. Knowing this, she can now focus on reallocating some of the IRA into more liquid, shorter-term investments within the IRA, such as bond funds or money market accounts, to increase her defensive interval ratio to a more comfortable level, perhaps aiming for 360 days (12 months) of coverage, without triggering immediate tax liabilities. This potentially saves her from prematurely drawing down the principal and paying taxes on early distributions. A one-time expense reserve of $15,000 for home repairs is now strategically allocated. This strategy also avoids high risk equities while she is in this period of personal grieving. Description: Ensure your retirement nest egg can weather any financial storm. Our Defensive Interval Ratio Calculator provides peace of mind. Category: Client Service