LifeYield, LLC, the leading cloud-based solution that facilitates tax-smart, risk-smart management of an investor’s entire household portfolio, announced today the release of Income Advantage, a first of its kind software tool offering advisors and their clients the ability to leverage sophisticated technology to create intelligent withdrawals from all their accumulated assets.
Income Advantage looks across all household accounts when a client seeks to make a withdrawal and provides instructions on what to sell to generate a Tax-Smart Retirement Paycheck®. The tool, which was previously only available at the enterprise level, will become available to all current and new subscribers of LifeYield’s Advantage Suite.
“Income Advantage is the first tool of its kind to examine an entire household portfolio, identify where to draw assets and in what order to ensure investors increase their ability to achieve their goals,” said Mark Hoffman, CEO and co-founder of LifeYield. “When determining the best way to create a Tax-Smart Retirement Paycheck, investors have an incredible number of variables to consider before any action can be responsibly taken.”
Income Advantage enables advisors to strategically identify from which accounts and in what sequence to draw assets across an investor’s entire portfolio in order to minimize taxes, maximize income, and maintain a portfolio’s optimal tax efficiency. It automatically considers investor objectives such as: minimizing asset allocation drift, tax-loss harvesting and setting capital gain limits.
The new tool is a welcome addition to LifeYield’s powerful Proposal Advantage Suite, including their Taxficient Score®, which quantifies the tax efficiency of a household portfolio by assigning a score between 0 and 100 and then shows how to implement changes to improve investors’ financial outcomes. The Suite also includes Portfolio Advantage, which develops a tax-smart optimization strategy for a household portfolio, and Social Security Advantage, which guides clients on the optimal time to begin taking Social Security benefits, how much more money they can enjoy and how to file given different spousal scenarios.
“Determining how to draw income from multiple accounts are some of the most common, complicated and important questions advisors receive,” said Steve Zuschin, EVP, Head of Direct to Advisor Sales. “If a client has three brokerage accounts, it’s difficult to say which account is best to draw from in a tax-smart way. Income Advantage is the only tool that can provide advisors guidance on the most efficient way to consider the investor’s entire portfolio, enabling them to make the most advantageous withdrawal across all their accounts.”