LifeYield Announces Partnership with Envestnet | Yodlee
Financial firms and advisors can now harness the power of Envestnet | Yodlee Analytics big data intelligence to identify and quantify how investor portfolios can benefit from tax-smart optimization
CHICAGO and BOSTON – January 30, 2019 – LifeYield (www.lifeyield.com), a leading cloud-based solution that facilitates tax-smart, risk-smart management of an investor’s entire household portfolio, announced a new integration with Envestnet | Yodlee, a leading data aggregation and data analytics platform powering dynamic, cloud-based innovation for digital financial services. This integration will help financial advisors identify, optimize and quantify the benefits to investors by managing multiple account registration types in a coordinated way to minimize taxes, maximize after-tax returns and be in a better position to achieve their goals.
LifeYield’s Taxficient Score® helps advisors quantify the financial benefits of improved asset location in dollars and cents over 10-, 15- or 20-year periods. As an example, a $1 million household with a 50% bonds/50% equity allocation would realize after-tax improved results as follows: $159,000 improvement over the first 10 years; $325,000 over 15 years; and $590,000 over 20 years. The integration of Envestnet | Yodlee will provide a seamless way for advisors to view LifeYield’s Taxficient Score across all investor portfolios.
The integration is currently being utilized by a top regional wealth management firm that will leverage big data to quantify the benefit/financial outcomes of coordinating multiple accounts for approximately 1,000 of its key clients.
The integration has three components:
- Computes the Taxficient Score for each client portfolio and the associated dollar benefit across all households in a firm’s or advisor’s book of business;
- Provides key metrics and alerts to aid advisors in identifying portfolios that would benefit most from tax-smart management, including consolidating outside assets. This “next best action” approach serves as a “virtual account manager” where firms can gain deeper insight into their clientele, run day-to-day operations more efficiently and raise assets more quickly by quantifying the client benefit of improving investor outcomes by leveraging the Taxficient Score;
- Demonstrates value of improving the client’s after-tax returns using the Taxficient Score, resulting in a detailed proposal generated from LifeYield’s Proposal Advantage software. The proposal includes information on how to implement the improved outcome in a series of staged transactions.
“Envestnet | Yodlee Analytics allows firms and advisors to gain holistic insights into their business to get their top questions answered,” said Frank Coates, Executive Managing Director Envestnet | Yodlee Analytics. “Combining Envestnet | Yodlee Analytics with LifeYield’s Taxficient Score and Proposal Advantage software suite is an example of how our data can be leveraged to convert business insights into quantifiable and actionable output.”
“The next frontier for financial services is where investment products, different account registrations, advisor tools and platforms are coordinated, optimized and quantified to improve investor outcomes,” said Mark Hoffman, LifeYield CEO. “LifeYield’s Taxficient Score powered by Envestnet | Yodlee Analytics quickly turns the identification of improved client outcomes into simple actions for financial firms and advisors to benefit investors.”
Hoffman continued, “Given the wide use of Envestnet | Yodlee Analytics, this integration makes it seamless for advisors and financial firms to leverage LifeYield’s solutions to provide investors with tax-smart strategies.”
Envestnet, Inc. (NYSE: ENV) is a leading provider of intelligent systems for wealth management and financial wellness. Envestnet’s unified technology enhances advisor productivity and strengthens the wealth management process. Envestnet empowers enterprises and advisors to more fully understand their clients and deliver better outcomes.
Envestnet enables financial advisors to better manage client outcomes and strengthen their practices. Institutional-quality research and advanced portfolio solutions are provided through Envestnet | PMC, our Portfolio Management Consultants group. Envestnet | Yodlee is a leading data aggregation and data analytics platform powering dynamic, cloud-based innovation for digital financial services. Envestnet | Tamarac provides leading rebalancing, reporting, and practice management software for advisors. Envestnet | Retirement Solutions provides retirement advisors with an integrated platform that combines leading practice management technology, research and due diligence, data aggregation, compliance tools, fiduciary solutions and intelligent managed account solutions.
More than 92,000 advisors and 3,500 companies including: 15 of the 20 largest U.S. banks, 43 of the 50 largest wealth management and brokerage firms, over 500 of the largest Registered Investment Advisors, and hundreds of Internet services companies, leverage Envestnet technology and services. Envestnet solutions enhance knowledge of the client, accelerate client on-boarding, improve client digital experiences, and help drive better outcomes for enterprises, advisors, and their clients.