Mrs. SD, age 74, has $100,000 in a certificate of deposit paying 1.5 percent annual interest. In addition to this interest income, she receives Social Security and a modest pension from her former employer. Her marginal tax rate is 10 percent. Mrs. SD lives independently, but she anticipates that in several years she will need to liquidate the certificate of deposit to buy into an assisted-living retirement home. She recently read a magazine article on the benefits of tax-deferred annuities and wonders if she should transfer her $100,000 savings into an annuity. Discuss whether this tax planning strategy is advisable for Mrs. SD.