Title: $1.8M IRA Growth: How Evelyn Boosted Returns & Income Tagline: Inheriting an IRA: How Evelyn Optimized Her $1.8M Portfolio and Increased Returns by 3% Problem: Evelyn, a 68-year-old widow, recently inherited a Traditional IRA worth $1.8 million from her late husband. Over the past 5 years, the IRA averaged a 4% annual return, primarily invested in a mix of large-cap stocks and bonds. Concerned about inflation and needing a more predictable income stream for her retirement, Evelyn wants to evaluate the historical performance of the existing portfolio and potential alternative investments, including dividend-paying stocks and high-yield bonds, to determine if a portfolio adjustment could improve her returns without significantly increasing risk. She also wants to understand the tax implications of various investment choices within the IRA. Solution: By using the Holding Period Return Calculator, Evelyn can analyze the actual performance of each asset in the portfolio, factoring in both capital appreciation and dividend income. She can then use this information to model potential changes, such as shifting a portion of the portfolio to high-yield bonds or dividend-paying stocks, and compare the projected Holding Period Return against her current portfolio's performance. Furthermore, understanding the tax-equivalent yield of different investments will help her make tax-efficient decisions within the IRA structure. ROI: By optimizing her portfolio, Evelyn can potentially increase her annual return by 3%, translating to an additional $54,000 in annual income ($1.8M * 3% = $54,000). This increased income stream would provide greater financial security and peace of mind during her retirement, allowing her to maintain her desired lifestyle and potentially cover unexpected expenses. Additionally, tax-aware investing could save her thousands in the long run, although specific tax savings would depend on her individual circumstances and tax bracket. Description: Learn how to maximize your inherited IRA's growth and income with our Holding Period Return Calculator. Discover strategies to evaluate investment performance and make informed decisions for long-term financial security. Category: Client Service