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Jefferson National Selects LifeYield to Power New Asset Location Tool for RIAs, Fee-Based Advisors and the Clients They Serve

By LifeYield | September 9, 2015 | News

February 1, 2016, Boston, MA – LifeYield, LLC, the leading provider of tax-smart household portfolio management software to financial institutions today announced it will deliver LifeYield Tax Optimizer as part of select Quicken® 2016 products to help improve an investor’s after-tax outcomes across multiple investment accounts.

Previously only available to financial advisors, LifeYield TO™ is now integrated with Quicken 2016 Premier, Home & Business, and Rental Property Manager. LifeYield TO™ enables individual investors to easily manage multiple brokerage, IRA and 401(k) accounts in a coordinated, tax-smart way and helps investors avoid paying unnecessary taxes on investment returns so they can increase the chances of achieving their financial goals.

LifeYield Tax Optimizer employs a strategy known as Optimal Asset Location, which analyzes how an investor’s assets will be taxed in each type of taxable or tax advantaged account. LifeYield TO then suggests in which account to own, or locate, each asset in order to minimize taxes. Research by Morningstar indicates investors can improve after-tax returns by up to one-half percent per year, which can be meaningful over time in growing investor household assets.

How it Works

An investor with one taxable account and one IRA account chooses an asset allocation that includes an equity mutual fund and an income producing bond. With the traditional approach, each of the investor’s taxable and IRA/401(k) accounts would have the same asset allocation and each would hold both of those assets in the same proportion.

Using a tax-smart Optimal Asset Location strategy, LifeYield TO suggests holding the income producing bond in the IRA where it will not be subject to the higher ordinary income taxes each year and will only be taxed when money eventually is withdrawn from the account. The equity mutual fund will be held in the taxable account where the investor can take advantage of the lower long term capital gains tax rate. And while each account will have a different asset allocation, the combined asset allocation of the two accounts will match the target household asset allocation chosen by the investor.

“Others claim to provide tax-smart portfolio management, but they are limited to avoiding short term capital gains taxes,” said Michael Benedek, president of LifeYield. “By coordinating the management of taxable and tax deferred accounts, additional tax savings can be enjoyed and much better results can be achieved. LifeYield TO™ employs patent-pending tax-smart strategies that historically have been available only to ultra-high net worth investors. It is the only robust tax-smart household investment management software available to individual investors.”


About LifeYield
LifeYield (, creators of the Taxficient Score®, is the industry innovator and leader in facilitating tax-smart, risk-smart household portfolio management. LifeYield's Advantage Suite® enables financial advisors to provide a comprehensive, tax-aware view of a client's entire investment and insurance portfolio, including easy-to-use tools to engage clients so they make and keep more money, and achieve their financial goals.
Based in Boston and founded by finance and technology industry leaders, LifeYield believes that by leveraging digitally enhanced advice advisors can improve investor outcomes and enhance the value and experience of support goals-based wealth management strategies.
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