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 comparisons 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.”
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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%.
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, comparisons by Ernst & Young LLP indicate that the effect LifeYield would have had if it was used on all four hypothetical households over the past 40-years, from 1969 through 2008, was that LifeYield 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 to gather more assets,” said Mark W. Hoffman, Chairman, CEO, and Co-Founder of LifeYield. “We’re very pleased with the Ernst & Young LLP studies that researched the significant positive impact LifeYield can have leading up to and in retirement.”
LifeYield’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