If you take cash · Where does it actually go?

The money you need liquid
earns less than the money you can lock.

After the IRS, FTB, and your CPA take their cut, some has to stay accessible (HYSA / Treasury / CD) and the rest can be locked into a 5-year MYGA at carrier-quoted rates. See the blended yield — then see what the same money would do inside a Structured Installment Sale.

Your numbers

Enter the after-tax cash you'll have post-sale, and the portion you genuinely need accessible.

What lands in your account after Year-1 cap-gains tax.
IRS bill, CPA, emergency fund, 6–12 mo expenses.
Liquid bucket (HYSA / Treasury / CD)~2.5%

$0

Pull-it-today money.HYSA, T-bill, or CD — you can hit it at any time. Pays whatever the market gives (currently ~2.5–5% on HYSA, ~4–5% on Treasuries, depends on Fed rate).

Tax drag:All three send you a 1099 every January. Interest is taxed at your ordinary income rate every year — no deferral. CA residents lose another 9.3–13.3% on top of federal.
Locked bucket (MYGA · 5-yr fixed annuity)~5.0%

$0

Locked for the term, tax-deferred.Multi-year guaranteed annuity from an A-rated insurance carrier. Interest compounds untaxed during lock-up; tax due only when you withdraw at maturity. State guaranty fund covers up to $250K per carrier.

Not as locked as it sounds.Most MYGAs let you pull 10% of principal each year, penalty-free — so on a $1M MYGA you can take $100K/yr without surrender charges. This calc assumes you don't touch it (cleanest comparison).
Your blended after-tax-cash yield
$300K × 2.5% + $1,100K × 5% = 4.5% blended

That blended rate is what your after-tax cash earns — gross. Subtract your marginal tax on the liquid portion's annual interest, and the real after-tax-on-yield drops further.

The kicker most sellers never hear

SIS earns ~4–5% on your full pre-tax sale price.

This calc starts with the after-tax leftover ($X). SIS structures the full $sale_price, before Uncle Sam touches it. Same yield × bigger principal = more dollars, every year, for the term. Run your sale through the SIS calc →

📋  CPA breakdown — line by lineclick to expand

Liquid bucket

Principal allocated—
Annual interest rate (gross)2.50%
Annual interest earned (gross)—
Tax drag (Fed 32% + CA 9.3%)—
Net after-tax yield—
After-tax interest / yr—

Locked bucket (MYGA)

Principal allocated—
Annual interest rate (gross)5.00%
Annual interest earned (gross, deferred)—
5-yr accumulated value (compounded)—
Tax due at maturity (Fed marginal)—
Net at year 5 (post-tax)—
Assumptions:HYSA rate 2.5% (conservative average — actual ranges 0.5–5% by bank); MYGA rate 5.0% (current A-rated 5-yr market — real quotes range 3–5% depending on term and carrier, locked in at placement); ordinary marginal blended at 41.3% (32% Fed + 9.3% CA on $200K MFJ income); MYGA assumed held to maturity with no penalty-free withdrawals taken; no carrier insolvency factored (CA guaranty fund covers $250K). For your client's exact filing & current carrier quotes, the CPA should verify.
The SIS comparison:The same gross yield (4–5%) applied to the pre-tax sale price (not the after-tax leftover) produces materially more total dollars over the term — AND the gain is recognized year-by-year inside lower brackets instead of bracket-stacking in Year 1. See the simple SIS calculator for that math, or the advanced calc for every dial.

Want to see what the same money does inside an SIS?

30-minute call. Bring your numbers. Hans will run your specific deal both ways — cash-with-bucket-split AND structured — and tell you honestly which fits.

📞 213-414-2808 — Talk to Hans SIS Calculator Pro →