Industry-First Tax-Smart Asset Location and Smart-Household Rebalancing
Innovative integration equips AdvisorPeak users with dynamic asset location and unique rebalancing capabilities that improve and quantify investor and advisor outcomes
February 18, 2020 09:30 AM Eastern Standard Time
BOSTON–(BUSINESS WIRE)–A historic bull market and changing tech landscape are driving advisors to find innovative ways to create value for their clients and differentiate their practice. LifeYield, LLC, the leading cloud-based solution that facilitates tax-smart, risk-smart management of an investor’s entire household portfolio, makes it easy to meet this demand by quantifying one of the most elusive sources of value — tax efficiency — through a new integration with AdvisorPeak, Inc. (AdvisorPeak), a leading portfolio trading and rebalancing platform focused on the wealth management industry. Together, LifeYield and AdvisorPeak are building the first-ever long-term, tax-smart rebalancing platform, matching a seamless, household-level view with LifeYield’s recommendations to achieve maximum tax efficiency for their clients. The integration is scheduled to be delivered in April.
LifeYield’s integration will simplify the asset location process for AdvisorPeak’s users, while also providing exact recommendations that improve client portfolio outcomes. The power of LifeYield’s tax-smart algorithm will set a new standard in household-level portfolio rebalancing, creating new opportunities for AdvisorPeak advisors and clients alike.
LifeYield leapfrogs the industry standard of static, rules-based asset location with a dynamic system that organizes multiple accounts and analyzes portfolios holistically to identify opportunities for tax efficiency. LifeYield’s Taxficient Score® reveals the financial benefits of improved asset location with a single, tangible dollar value that resonates with clients. By combining AdvisorPeak’s portfolio data with LifeYield’s proprietary, dynamic asset location capabilities, advisors will be able to generate a comprehensive report that includes the client’s Taxficient Score, the dollar benefit of that score as well as specific recommendations on how to adjust each client’s asset location to reduce tax exposure.
“The prolonged length of the bull market means that having the ability to intelligently rebalance is critical,” said Harry Bartle, Executive Vice President, Enterprise Sales at LifeYield. “For the first time ever, LifeYield will enable advisors to use dynamic asset location technologies to create an unmatched household view of their clients’ portfolios and then execute on that information to make tax-smart recommendations at a level the industry has never seen before.”
This new integration will increase efficiencies for RIAs by allowing for coordination of accounts and households across both platforms. AdvisorPeak advisors can serve multiple-account households with LifeYield’s analytics and tax optimization reports based on their household membership, holdings and asset location.
“It’s a hand-in-glove match of complementary technologies,” said Damon Deru, Chief Executive Officer at AdvisorPeak. “This marks the first time advisors will be able to leverage long-term tax analysis within a rebalancing and trading platform to execute tax-efficient rebalancing and trading as well as enabling the advisor to demonstrate their added value in dollars and cents. This integration represents a perfect storm of process improvement disruption for our industry.”
LifeYield, creators of the Taxficient Score®, enables financial advisors to deliver tax-smart, household-level portfolio solutions. LifeYield’s Advantage Suite® provides a comprehensive, tax-aware view of a client’s entire portfolio — analyzing assets across IRAs, 401(k)s and taxable accounts. The company’s easy-to-use tools engage clients so they make and keep more money from accumulation through retirement income, and enhance their ability to achieve their financial goals.
Based in Boston and founded by finance and technology industry leaders, LifeYield’s cloud-based software helps advisors improve investor outcomes and enhance their value and experience in supporting goals-based wealth management strategies. For more information, please visit www.lifeyield.com.
Located on the Silicon Slopes of Salt Lake City, Utah, AdvisorPeak, Inc. was founded by former investment advisors and wealth management industry subject matter experts with the vision of bringing innovative software to the financial services industry. Designed to meet the real-world needs that advisors and institutions face, AdvisorPeak is the product of years of in-depth research and development of tax-smart portfolio trading and rebalancing. AdvisorPeak puts enterprise-class portfolio management tools within the reach of all investment professionals. For more information about AdvisorPeak, or to schedule a software demo, please visit www.advisorpeak.com or follow @AdvisorPeak on Twitter.