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LifeYield: Tax-Smart Portfolio Software to Maximize Finances

CIO VendorMark Hoffman, CEO
"Make More and Keep More”—that’s the tagline of LifeYield—a transformative software company that was established in Boston in 2008. Led by financial industry and technology innovators, the ‘secret sauce of the firm lies in looking at things holistically’ apart from advising investors, both directly through robot-platforms or enhanced systems. LifeYield provides advisors the ability to connect technologically, enabling them to connect their legacy systems into “something that can output their visually enhanced advice.” “A statistics by Hearts in Wallets revealed that for an investor who had a huge amount of savings, taxes would be the biggest expense after retirement, therefore, it is here that LifeYield steps in to help firms, investors or advisors organize different accounts,” asserts Mark Hoffman, CEO of LifeYield. The firm helps financial advisors leverage cutting-edge, multi-account, tax-smart portfolio software to enhance their effectiveness and serve clients better. From allocation of the most tax efficient assets to making retirement paychecks, LifeYield provides the apt advice, so that the investor gets much more than what they would have otherwise.

LifeYield was founded by Paul R. Samuelson, Chief Investment Officer and Co-Founder, Michael Benedek, President, CFO and Co-Founder, and Mark Hoffman, CEO. It was conceptualized when the trio realized that questions related to security, management of accounts, insurance, annuity, and income needed answers. The firm ran simulations, and ‘Sun Trust’ became their very first wealth management client, with which they built their first release, focusing on retirement paycheck. They then went on to develop tax efficient scores for the retired clients, developed social security capabilities and answered questions of clients. Besides, with the evolution of technology, the firm’s software improved financial health by increasing assets and income by coordinating all accounts in a tax-smart way, thus, building a relationship with end investors, giving them confidence and freedom to have a good future.

We are very innovative, collegial, and have been very fortunate to find people with different domain experiences to help us take the business forward

“We built this software to help tell the story that advisors were talking to their clients about; an easy way to describe it is as a sales tool, but it is showing clients the benefits in a simple way,” states Hoffman. The software focuses on a tax-efficient score that analyzes a client’s portfolio and their multiple accounts. A score is added from 0-100, telling the client how tax efficient they are and how well it is organized, thus, ensuring they make improvements accordingly. The firm ensures it improves and enhances its software to keep up with changing user interfaces. It has also exposed its algorithms via APIs making itself highly scalable even in SaaS. Another aspect of the firm is that with their algorithms they take in data and send back loads of valuable information, without any client identifying information. Not all software firms’ can be so highly scalable but LifeYield makes it evident from their handling of clients such as the likes of Morgan Stanley’s that have 16,000 advisors. “We are concentrated in a very vertical way in solving the problems like offering digital advice to make things much easier for the end client to understand,” says Hoffman.

The firm helped a financial advisor when he came across a prospect/ household with accounts in four different places. The financial advisor wanted to know how tax efficient the household was from an asset location standpoint. LifeYield had all four accounts in its software and came up with an analysis that the client wasn’t coordinating the assets from a household level. With a ten year benefit, the firm got the financial advisor most optimized portfolio. When the advisor sat with his client, showed them how to be more tax efficient, and locate their assets in the right places successfully from a household level, he won over the client.

Having built a roadmap with a bunch of clients, the firm is looking to add more features and functionalities to their software so that any investor or advisor can ‘make more and keep more.’ Besides, the firm is looking to build their features in a way where it caters to different scenarios and demographics of clients. “We are very innovative, collegial, and have been very fortunate to find people with different domain experiences to help us take the business forward,” concludes Hoffman.