Product - 12 month IRA CD, auto renewal. We spoke with our regulator and as a result of that conversation disclose compounding and crediting on the TIS as interest will not be compounded and will be credited to the account at maturity since this is what will happen during that 12 month term and is how the APY is calculated.
With regards to the IRA Calculated Financial Projection for 5 years, Age 60, Age 65 and Age 70 - since the interest is credited back to the account at maturity and since the CD is auto renewed, should the value of the IRA include the interest earned at the end of each year under the projected value column (assume projection includes just the initial deposit and not further contributions)?
For example:
IRA Value at end of
Year 1 - 1,015
Year 2 - 1,030.22
etc.
or should it be disclosed as:
Year 1 - 1,000
Year 2 - 1,000
etc.?
Thanks in advance.
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