Title: Unlock a $1.8M IRA's Potential: Eleanor Finds Higher Returns & Secure Retirement Tagline: Turning Widow's $1.8M IRA into a Legacy: Outperforming Benchmarks and Maximizing Retirement Income Problem: Eleanor, a 68-year-old widow, recently inherited a $1.8 million Traditional IRA. Overwhelmed, she hired a financial advisor who recommended a diversified portfolio benchmarked against the S&P 500. While the portfolio has grown, Eleanor is unsure if the returns justify the risk, especially given her need for stable income and potential estate planning implications. Her current portfolio yielded 7% while the S&P 500 gained 10% with a beta of 1.1. Is her advisor truly delivering value, or is she underperforming? She wants to maintain a steady income stream to cover her living expenses and ensure a legacy for her grandchildren. Solution: By using the Alpha Calculator, Eleanor can determine if her advisor is generating positive alpha (risk-adjusted outperformance). Entering her portfolio's return (7%), the benchmark's return (10%), and the portfolio's beta (1.1), the calculator reveals a negative alpha of -4%. This means her portfolio is significantly underperforming relative to the risk taken. Eleanor can then explore alternative investment strategies, negotiate lower management fees, or switch advisors to improve her alpha. The Tax Equivalent Yield calculator helps compare after-tax returns of different investments to maximize her income and the Bond YTM calculator helps assess the potential income from fixed-income assets. ROI: By identifying and rectifying the negative alpha of -4%, Eleanor could potentially improve her portfolio's annual return by 4%, translating to an additional $72,000 per year on her $1.8 million portfolio. Over a 10-year period, even with conservative assumptions, this could compound into several hundred thousand dollars of additional wealth, securing her retirement and legacy. Reducing management fees by just 0.5% (a reasonable target after demonstrating underperformance) saves her an additional $9,000 annually. Description: Uncover hidden opportunities to improve your portfolio's risk-adjusted returns and ensure a comfortable retirement after a significant life change. Our Alpha Calculator helps you assess your investment manager's performance and identify strategies for higher, safer growth. Category: Client Service