LifeYield Launches Multi-Account UMA Tax Overlay, Improves Investor Outcomes by 33%

• Empowers firms to realize benefits of multi-account UMAs to improve after-tax returns and enhance diversified investment strategies, including direct indexing.
• Customizes asset location and tax harvesting across multiple accounts and adds tax efficiency to firms’ rebalancing engines without having to replace current technology.
• Capitalizes on tax advantages of different account types to multiply tax alpha, boosting client after-tax returns and decumulation efficiency, while increasing assets under management (AUM) for advisors and firms.

BOSTON – September 7, 2022 – LifeYield announces today the release of its Multi-Account UMA Tax Overlay, a simple-to-implement, API-based technology for asset and wealth management companies to generate tax alpha for clients and gather net new assets for advisors and firms.

The latest development in tax-smart technology from LifeYield, the Multi-Account UMA Tax Overlay enables firms to capitalize on their investments in financial planning and unified managed account (UMA) platforms without ripping up their current technology. And they can deliver up to 33% more in returns for clients.*  

“Stocks are down, inflation is undermining returns, and many economists predict a recession is imminent. Investors are anxious and uncertain about whether they’ll continue to be able to accumulate wealth and generate ample retirement paychecks,” said Mark Hoffman, Chairman, Chief Executive Officer, and Co-founder of LifeYield.

“Tax-efficient investing across all holdings can help settle investors’ jitters and provide firms and advisors with a decided advantage in their ability to demonstrate value and gather assets.”

The LifeYield Multi-Account UMA Tax Overlay empowers advisors to take advantage of the most potent tax alpha generating capability – asset location – by identifying the proper account registration for each type of recommended investment. Studies show asset allocation alone improves investor returns by up to 60 basis points per year.

The LifeYield Tax Overlay then enables advisors and their firms to promote tax efficiency across every sleeve on their UMA platforms – including mutual funds, exchange-traded funds (ETFs), separately managed accounts (SMAs), investment-only variable annuities (IOVAs) and direct indexing. 

The LifeYield Tax Overlay ultimately provides advisors and firms with insights into which client portfolios can benefit most from tax efficiency and delivers to advisors and clients projected values on tax savings and portfolio increases in dollars and cents.

When clients are ready to move from accumulation to decumulation, the LifeYield Tax Overlay shows advisors which assets to liquidate from which accounts to minimize clients’ taxes.

“UMAs are the backbone of the asset and wealth management industry,” Hoffman said. “UMAs can be taxable or tax-advantaged accounts. With the LifeYield Tax Overlay, advisors can provide clients with unambiguous evidence of their value and the financial benefits of consolidating their holdings.”  

*Based on an independent EY evaluation of LifeYield tax-efficiency methodology.

About LifeYield

LifeYield is a technology company that improves investor outcomes by minimizing investment taxes and maximizing retirement income. Major financial services firms integrate LifeYield APIs with their proprietary platforms to automate ongoing asset location, tax harvesting, transitions, withdrawals, multi-account rebalancing, and retirement income optimization. LifeYield’s approach increases advisor productivity and improves financial results for investors, advisors, and firms by up to one-third. For more information, visit lifeyield.com.