BOSTON--(BUSINESS WIRE)--LifeYield, a transformative software company helping forward-thinking financial firms, advisors and investors make more and keep more money, has announced an investment in the firm by Vestigo Ventures, a Cambridge, MA-based venture fund that invests in cutting edge financial technology.
LifeYield offers both direct to consumer and financial advisor versions of its software that enable investors to improve after-tax returns and outcomes across multiple accounts, income sources and products with the following suite of tools:
1) Income Advantage – a software tool that suggests the tax-optimal sequence of withdrawal across multiple accounts and products. Morningstar research says this kind of approach can improve after tax results by 54 basis points per year. In addition to showing how to achieve improved outcomes, LifeYield also quantifies the value of the improved results for investors, which can help advisors adhere to the forthcoming Department of Labor Fiduciary Rule deadline in April of 2017.
2) Portfolio Advantage – a software tool where investors and advisors can avoid unnecessary taxes by managing multiple accounts in a tax-optimal, coordinated way. Morningstar says asset location can improve after-tax results by 52 basis points per year.1 LifeYield’s unique and in depth process suggests the optimal location of assets by recommending the optimal account registration to locate tax efficient assets, such as long term equities in taxable accounts and tax-inefficient assets, such as high yield bonds in IRAs.
3) Social Security Advantage – a software tool that suggests the optimal timing of when to begin Social Security benefits, often suggesting the deferral of benefits, and quantifies the increased dollar value of the suggested strategy. Additionally, the tool suggests how to work through the complexity of filing for benefits, including the various combinations of spousal rules.
"LifeYield is the undisputed leader in pioneering and delivering tax-smart investing solutions across multiple accounts," said Ian Sheridan, Managing Director, Vestigo Ventures. “All investors, advisors and firms are looking for ways to maximize after-tax returns and improve outcomes across all the accounts in a household. LifeYield is the industry pacesetter with scalable software that helps investors and advisors achieve their goals and improve results.”
“We are honored the industry veterans and leaders at Vestigo Ventures chose to put their trust and investment in our company,” said Mark Hoffman, CEO, LifeYield. “We are in the midst of a break-out year and Vestigo’s investment will play an important role in accelerating our delivery of software that help investors, advisors and their firms enjoy significantly improved results.”
Vestigo is led by Managing Director Ian Sheridan and General Partners Mark Casady, and Dave Blundin, who each have deep experience and success in growing financial services and technology firms.
About LifeYield
LifeYield LLC is a transformative software company that helps forward-thinking financial firms, advisors, and investors make and keep more money. LifeYield’s software takes a comprehensive view of investors’ assets and provides simple tools to help improve their financial health. They do so through the LifeYield Advantage Suite™ of asset optimizing software programs including Portfolio Advantage, Social Security Advantage, and Income Advantage. Based in Boston and founded by acclaimed finance, technology, and industry experts, LifeYield is passionate about helping people live the retirement of their dreams. For more information, please visit www.lifeyield.com.
About Vestigo Ventures
Vestigo Ventures, headquartered in Cambridge, MA, invests in early-stage financial technology companies, targeting initial investment from seed to “A” rounds. The company was founded by David Blundin, CEO and chairman of Cogo Labs, Mark Casady, CEO and chairman of LPL Financial, and Managing Director, Ian Sheridan. Vestigo’s senior team and their industry advisory board possess a unique mix of disciplines and experience needed to spot the most promising FinTech innovations. These professional peers operate at the nexus of the larger network of entrepreneurial pioneers in academia and the corporate world who are cultivating the most potent emerging technologies to meet the needs of the $12B annual market for FinTech. Learn more at www.vestigoventures.com.
1 Alpha, Beta, and Now...Gamma," Blanchett, David, CFA, CFP, and Kaplan, Paul, Ph.D., CFA, Morningstar, Inc., 2013.
