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Quick Start Guide: Income Advantage®

Get started with Income Advantage

LifeYield Income Advantage® provides multi-account withdrawal strategies through using the cost-basis and purchase date of each position, going all the way down to tax lot when available.

Income Advantage coordinates a tax-efficient withdrawal from all the accounts in the household with three goals in mind:

  1. Minimizing allocation drift
  2. Increasing your Taxficient Score®
  3. Realizing losses/minimizing gains

Executing the Withdrawal Analysis

This image guides you through a quick overview of Income Advantage, with each number corresponding to a number in the list that follows.

 

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  1. Enter the amount the client needs to withdraw here. This option will allow LifeYield to use all available assets with no registration constraints.
  2. Enter applicable amount to be taken from the corresponding registration type, EX: Required Minimum Distributions (RMD) would come out of Tax-Deferred.
  3. Choose this option to align the current allocation of the Portfolio to your Portfolio Target.
  4. Enable to prioritize cash sales first.  This feature can only be used if the "Observe Target" option is turned off.
  5. Enable to increase withdrawal to meet the desired withdrawal amount, net of taxes.
  6. Maximum allowed short term/long term gains.
Lastly, Click "Run Withdrawal". You'll then be taken to the following screen.

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  1. By downloading the PDF report, show your client the:
    • Full list of positions to sell
    • Benefit of asset consolidation by demonstrating your added value
    • Also available to download the sale list to excel, allowing you to configure our sale list for your trading platform easily
  2. Summary of withdrawal and account from which to sell, e.g., sell $10K from taxable account.
  3. These charts show the portfolio allocation before and after withdrawal, when compared to the target allocation. Drift is significantly minimized.
  4. Taxficient Score® is maintained ensuring optimal after-tax return.
  5. High level asset-class breakdown based on suggested sale(s).