Trade Level Output Gain-Limits for Tax-Smart Withdrawals

  1. Open your client’s portfolio within LifeYield
  2. Click on the pencil icon next to the name of the portfolio
  3. Click on each account listed under Accounts that you’d like to trade.
  4. In the Add/Edit Account pop-up, click on the Output Type drop-down:
  5. Select Trade, this will allow LifeYield to look at every position within the account and if we have the tax lots, the tool will break them down by individual lots.
    1. When you run a location analysis, by having the trade output set, this allows the tool to measure the potential impact as it relates to taxes and examines the cost of improving the Taxficient Score for your clients.
  6. After selecting Trade, click the Save button. Click on the ‘Generate Proposal’ button and select Location Analysis. In the Options pop-up, you can choose to enter any short- or long-term gains. By leaving this set to $0, we are going to assume that you’re going to sell everything and move these clients into a new model.
    1. If your client would prefer not to realize any capital gains this year to improve their overall long term investment tax-efficiency, click the toggles on for both Short-term Gain Limit and Long-term Gain Limit to set them both to $0.
  7. Click the Continue button to run your analysis. This will show your clients what type of improvement you can offer for their investments without realizing any capital gains.