LifeYield LLC, a provider of cloud-based tax and risk management solutions for investors, announced the release of Income Advantage, a software tool that helps advisers create intelligent withdrawal plans that can account for all of a client’s assets.
According to the firm’s announcement, 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 was previously available at the enterprise level, but it is now becoming available to all current and new subscribers of LifeYield’s Advantage Suite.
Mark Hoffman, CEO and co-founder of LifeYield, says the digital solution is designed to address the “incredible number of variables to consider” before any withdrawal action can be responsibly taken.
He adds that Income Advantage enables advisers 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. An investor’s investment objectives can be programmed into the system, such as minimizing asset allocation drift, tax-loss harvesting and setting capital gain limits.
“Determining how to draw income from multiple accounts are some of the most common, complicated and important questions advisers receive,” notes Steve Zuschin, head of direct to adviser sales for LifeYield. “If a client has three brokerage accounts, it’s difficult to say which account is best to draw from in a tax-smart way.”