Study: LifeYield ROI™Methodology Increases Retirement Income by up to 33%
BOSTON, MA, October 18, 2010 – LifeYield's tax-smart retirement income methodology can provide up to 33% more after-tax income over a 15-year pre-retirement and 25-year retirement period according to independent tests conducted by Ernst & Young, LifeYield LLC announced today as part of a newly released research paper titled, “IMPROVING AFTER-TAX RETURNS, RETIREMENT INCOME, AND BEQUESTS THROUGH TAX-SMART HOUSEHOLD MANAGEMENT.”
LifeYield ROI™ is a patent pending software solution that helps advisors simplify and maximize retirement income distributions for investors. Ernst & Young created its own simulation model based on the key principles of the LifeYield ROI methodology and ran 10,000 simulations to validate the potential benefits of the LifeYield ROI™ software.
The analysis showed that when combined with a Roth IRA conversion, going from a tax-deferred to a tax-free account, LifeYield's methodology can increase retirement income by up to 36% over the same 40-year period. For ultra high net worth households where assets often can generate more income than is required, a constrained level of income was used with findings that LifeYield ROI can increase bequests by up to 139%.
In September, 2009, Ernst and Young completed research on LifeYield ROI, which found that the system could produce up to 20% more retirement income when used over a 25-year retirement period. The current research considered the affect LifeYield ROI can have on retirement income by adding a 15-year pre-retirement accumulation period to a 25-year retirement income phase.
As with the 2009 study, three hypothetical households were considered of increasing size and ran 10,000 forward-looking scenarios on each. For the current study, a fourth, ultra-high net worth hypothetical household was added. Additionally, the affect LifeYield ROI would have had if it was used on all four hypothetical households over the past 40-years, from 1969 through 2008, and found that use of LifeYield ROI would have produced up to 44% more retirement income.
"We built LifeYield for advisors to help their clients achieve more tax-smart income. This provides a compelling reason for advisors who use LifeYield ROI to gather more assets,” said Mark W. Hoffman, Chairman, CEO, and Co-Founder of LifeYield. "We're very pleased with the Ernst & Young findings that validate the significant positive impact LifeYield ROI can have leading up to and in retirement.”
LifeYield ROI's technology simplifies and automates the process of selecting which assets to buy and sell in order to grow and liquidate a household's various taxable and tax-advantaged portfolios in the most tax efficient way, all while maintaining the desired asset allocations.
To obtain a copy of the white paper, “IMPROVING AFTER-TAX RETURNS, RETIREMENT INCOME, AND BEQUESTS THROUGH TAX-SMART HOUSEHOLD MANAGEMENT, A LifeYield, LLC White Paper with Supporting Research by Ernst & Young, please click here: Research Paper
About LifeYield, LLC
LifeYield, LLC provides technology solutions that maximize after tax retirement income while simplifying and automating the time-consuming process financial advisors must go through in selecting which of a client's assets to sell in providing a steady, recurring income. The company's mission is to provide financial advisors, including trust officers, financial planners, brokers and wealth managers, with simple and optimal solutions for generating sustainable income from a client's portfolio. For more information, please visit: www.lifeyield.com.
LifeYield's Tax-Smart Software
Helps financial advisors simplify and maximize clients' retirement income.
What People Are Saying
"Our studies show top advisors spend 1-3 hours completing a comprehensive cash harvest; advisors observed the LifeYield ROI™ tool will do it within seconds and ensures consistency of process and outcome."
Warren Cormier, President, Boston Research Group and Co-Founder, Behavioral Finance Forum