Donna noble age 74 has 50000 in a certificate of deposit

Reference no: EM13370878

Donna Noble, age 74, has $50,000 in a certificate of deposit paying 6 % annual interest. In addition to this interest income, she gets social security and a modest pension from her former employer. Her marginal tax rate is 10%. Donna lives independently now, but she anticipates that in numerous years she will need to liquidate the CD to buy into an assisted living retirement home. She just read a magazine article on the benefits of tax-deferred annuities and wonders if she should transfer her $50,000 savings into an annuity. Show whether this tax planning strategy is advisable for Donna Noble. Find what are two other strategies that she could also consider?

Reference no: EM13370878

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