Strategic investment serves as recognition of the value LifeYield’s dynamic, tax-smart solutions provide for investors and advisorsBOSTON – December 06, 2016 – LifeYield, a transformative software company helping forward-thinking financial firms, advisors and investors make more and keep more money, has announced an investment in the firm by Vestigo Ventures, a Cambridge, MA-based venture fund that invests in cutting edge financial technology. LifeYield offers both direct to consumer and financial advisor versions of its software that enable investors to improve after-tax returns and outcomes across multiple accounts, income sources and products with the following suite of tools:
- Income Advantage – a software tool that suggests the tax-optimal sequence of withdrawal across multiple accounts and products. Morningstar research says this kind of approach can improve after tax results by 54 basis points per year. In addition to showing how to achieve improved outcomes, LifeYield also quantifies the value of the improved results for investors, which can help advisors adhere to the forthcoming Department of Labor Fiduciary Rule deadline in April of 2017.
- Portfolio Advantage – a software tool where investors and advisors can avoid unnecessary taxes by managing multiple accounts in a tax-optimal, coordinated way. Morningstar says asset location can improve after-tax results by 52 basis points per year. LifeYield’s unique and in depth process suggests the optimal location of assets by recommending the optimal account registration to locate tax efficient assets, such as long term equities in taxable accounts and tax-inefficient assets, such as high yield bonds in IRAs.
- Social Security Advantage – a software tool that suggests the optimal timing of when to begin Social Security benefits, often suggesting the deferral of benefits, and quantifies the increased dollar value of the suggested strategy. Additionally, the tool suggests how to work through the complexity of filing for benefits, including the various combinations of spousal rules.