Consumers have long understood the impact their personal credit scores have on their financial lives. Now financial advisors will have the ability to offer their clients a similar scoring mechanism to help them understand the tax efficiency of their entire investment portfolio through LifeYield’s Taxficient Score®.
The Taxficient Score will be showcased at LifeYield’s booth, #102, at the 2018 T3 Advisor Conference taking place at Marriott Harbor Beach Resort & Spa, in Fort Lauderdale, Florida.
LifeYield, a software company that hopes to help financial advisors and their clients to make and keep more money, developed the Taxficient Score.
The Taxficient Score will also be available through an integration with Riskalyze, thus enhancing advisors’ ability to measure risk and provide added value to their clients.
“LifeYield and Riskalyze both have a vision to quantify subjectiveness in an industry that feels broken to investors and their advisors,” said Aaron Klein, CEO at Riskalyze. “We can’t wait to see how advisors use the Risk Number and the Taxficient Score in tandem to empower fearless investing with their clients.”
“The partnership with Riskalyze validates the need among advisors to have access to tools and technology to provide digitally enhanced advice. The Taxficient score will help advisors create richer proposals and ultimately, a workable plan for clients’ to make and keep more money through tax optimization,” said Mark Hoffman, Chairman and CEO of LifeYield.
HOW TAXFICIENT AND LIFEYIELD WORK
The Taxficient Score is based on a scale of 0-100. A score of 100 indicates the household portfolio is optimally organized to minimize taxes. A lower score helps financial advisors see where to make portfolio adjustments and minimize client tax exposure.
LifeYield technology also allows financial advisors to look at all of an investor’s accounts in one place and suggest a coordinated household tax management approach.
“By age 50, most investors have five or six different accounts managed by multiple financial advisors,” said Lifeyield’s Hoffman. “With little to zero coordination between accounts, financial advisors could not analyze tax efficiency across all their clients’ holdings. In addition, they lacked an easy way to communicate the value tax optimization and asset location provides. LifeYield’s platform gives financial advisors a simple score, and the ability to devise an asset accumulation and spending plan to increase their clients’ after-tax returns and income.”
Investors can access their Taxficient Score through their financial advisor to manage multiple account types—such as 401(k), brokerage, Roth IRA and IRA rollover accounts—in a tax-efficient way.
LifeYield LLC is a software company that aims to help financial firms, advisors, and investors make and keep more money. The software takes a comprehensive view of investors’ assets and provides tools to help improve their financial health. The LifeYield Advantage Suite of asset-optimizing software programs and sales tools includes Proposal Advantage® with the Taxficient Score®, Portfolio Advantage®, Income Advantage® and Social Security Advantage®. Based in Boston, LifeYield is passionate about helping people live the retirement of their dreams. For more information, visit www.lifeyield.com.
Riskalyze is the company that invented the Risk Number®, which powers a Risk Alignment Platform and helps advisors to execute a digital advice business model with Autopilot. Compliance Cloud by Riskalyze helps compliance teams to spot issues, develop real-time visibility and navigate changing fiduciary rules. Advisors, broker/dealers, RIAs, asset managers, custodians and clearing firms use Riskalyze to align investments with each investor’s Risk Number. To learn more, visit www.riskalyze.com.