BOSTON – February 7, 2018
The New Industry Standard for Tax-Efficient Household Portfolio Management Launches at the T3 Advisor Conference with Riskalyze as its First Integration Partner.
Consumers have long understood the impact their personal credit scores have on their financial lives. Now, for the first time, 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®.
An industry first, the Taxficient Score was developed by LifeYield, a software company that enables financial advisors and their clients to make and
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 allows financial advisors to make portfolio adjustments that help clients minimize tax exposure. Most importantly, with LifeYield technology, financial advisors can 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. 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,” said Mark Hoffman, Chairman
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 and Riskalyze both have
Hoffman concluded, “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.”