Taxficient® Quick Proposal

The LifeYield methodology compares different strategies for implementing the current overall asset allocation across a portfolio comprising one or more types of investment account (Taxable, Tax-Deferred and Tax-Free). In all cases, the portfolio’s after-tax return is evaluated based on the inputs provided. During the course of this evaluation, it is assumed that any allocation to an asset category is able to be satisfied by any category in the same group, and that the algorithm is therefore free to switch between categories of the same group where needed.

When determining the after-tax return of an asset category held in a taxable account, any portion of the total return designated as dividends is taxed at the capital gains tax rate (i.e. is treated as a qualified dividend), and any portion designated as yield is taxed at the ordinary income tax rate, except for tax-free fixed income where no taxes are deducted. Any capital appreciation associated with an asset category is taxed according to the turnover rate. Any turnover up to 100% is considered long-term, meaning the capital gains rate is applied according to the rate provided. Any turnover above 100% is considered short-term, meaning the ordinary income tax rate is applied to that portion (with the capital gains tax rate being applied to any remainder from 100% total turnover).

Ordinary income

Ordinary income is any type of income earned by an organization or individual that is taxable at ordinary rates, such as wages, salaries, tips, interest income from bonds and commissions.

Marginal Tax Rate

A marginal tax rate is the tax rate incurred on each additional dollar of income. The marginal tax rate for an individual will increase as income rises.

Effective tax rate

The effective tax rate is the average tax rate paid by a corporation or an individual. The effective tax rate for individuals is the average rate at which their earned income, such as wages, and unearned income, such as stock dividends, are taxed.

Long-term Capital Gain

A long-term capital gain is the gain stemming from the sale of a qualifying investment that has been owned for longer than 12 months at the time of sale.

Short-term Capital Gain

A short-term gain is profit realized from the sale, transfer or other disposition of personal or investment property known as a capital asset that has been held for one year or less.

Turnover Rate

Turnover rate is the percentage of a mutual fund or other portfolio's holdings that have been replaced in a given year (calendar year or whatever 12-month period represents the fund's fiscal year).

Reliability of Analysis and Report

The outcomes provided on this Quick Proposal Tool are not intended to be a thorough analysis. In order to prepare a thorough analysis that completely addresses your needs, your financial advisor or representative will seek to gather a wide variety of personal information from you, such as details about your assets, debts and family relationships. The usefulness of the Report is dependent upon the quality and accuracy of the information you have given to your representative.

The calculations illustrating tax concepts and deductions are estimates only and any results generated are subject to the review and analysis of your representative. This analysis is a series of general estimates which are based upon the underlying information available now. That information will change over time, and the analysis will need to be updated to reflect those changes. The assumptions regarding future tax savings are hypothetical and there can be no guarantee that they will be achieved. Actual results may vary substantially from the figures shown.

IMPORTANT:  THE OUTCOME OF THE TAXFICIENT SCORE IS HYPOTHETICAL IN NATURE, DOES NOT REFLECT AN INDIVIDUAL'S ACTUAL TAX OR INVESTMENT RESULTS AND IS NOT A GUARANTEE OF FUTURE RESULTS.  OTHER INVESTMENTS NOT CONSIDERED IN GENERATING THIS REPORT MAY HAVE CHARACTERISTICS SIMILAR OR SUPERIOR TO THOSE BEING ANALYZED.

INFORMATION PROVIDED IN THIS ANALYSIS IS FOR INFORMATIONAL PURPOSES ONLY TO ASSIST YOU IN THE REVIEW OF YOUR ACCOUNT AND MAY NOT ACCURATELY PORTRAY YOUR CURRENT OR ANTICIPATED FINANCIAL SITUATION AS A RESULT OF A NUMBER OF FACTORS. UNANTICIPATED MARKET SHOCKS, CHANGES IN THE TAX CODE OR ERRORS DUE TO DATA ENTRY WILL ALTER THE RESULTS PRESENTED IN THIS ANALYSIS. ADDITIONALLY, SOME OF THE DATA USED IN THIS REPORT MAY BE GENERIC IN NATURE AND MAY NOT AT ALL REPRESENT YOUR ACTUAL ACCOUNT HOLDINGS. THE RESULTS MAY VARY WITH EACH USE AND OVER TIME.

THIS ANALYSIS IS INTENDED TO BE USED AND REVIEWED WITH THE GUIDANCE OF A FINANCIAL ADVISOR. NEITHER THE INFORMATION NOR ANY OPINION EXPRESSED HEREIN CONSTITUTES AN OFFER OR SOLICITATION OF SECURITIES OR INVESTMENT SERVICES OR AN ENDORSEMENT THEREOF IN ANY JURISDICTION OR IN ANY CIRCUMSTANCE IN WHICH SUCH OFFER OR SOLICITATION IS UNLAWFUL OR NOT AUTHORIZED. THE INFORMATION PROVIDED IN THIS ANALYSIS IS NOT MEANT TO BE RELIED UPON FOR ACCOUNTING, LEGAL OR OTHER PURPOSES INCLUDING INVESTMENT ADVICE. ALL INVESTMENTS CARRY A RISK OF LOSS, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL WHICH YOU SHOULD DISCUSS WITH YOUR FINANCIAL ADVISOR. THERE IS NO ASSURANCE THAT ANY INVESTMENT WILL BE PROFITABLE. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.

THE VALUES REPRESENTED IN THIS ANALYSIS MAY NOT BE TIMELY AND SO THE ACCURACY AND COMPLETENESS OF THE INFORMATION IS NOT GUARANTEED. IF YOU NOTE ANY DISCREPANCIES, PLEASE CONTACT YOUR FINANCIAL ADVISOR IMMEDIATELY.

No Legal or Accounting Advice is being rendered in this Report

No investment, legal, tax or accounting advice is being rendered in this Report. LifeYield, its affiliates, and directors, officers, employees and agents (collectively, “LifeYield Representatives”) are not permitted to give legal or tax advice and no such legal, tax or accounting advice is being rendered through any other oral or written communication from LifeYield Representatives. Users should consult directly with their legal and tax advisors prior to entering into any financial transaction or estate plan so that it can be evaluated based on your own needs and circumstances.

IRS Circular 230 Disclosure

Information in this material is not intended to constitute specific legal, tax or investment advice. You should consult your legal, tax and financial advisers before making any financial decisions. If any information is deemed “written advice” within the meaning of IRS Regulations, please note the following: Pursuant to IRS Regulations, neither the information, or any advice contained in this communication (including any attachments) is intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax related penalties or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

Use of the LifeYield application is provided as a convenience to help you manage investment accounts. Reliance on it for any other purpose, including the calculation and preparation of income tax estimates or returns, is beyond the scope of the program. Access to LifeYield is provided on an “as-is and as available” basis, and LifeYield makes no warranty with regard to the accuracy of its calculations, tax effects or results. You should consult with your own professional tax advisors concerning specific tax circumstances.

The tax information contained herein or provided in connection with the use of the LifeYield application is general in nature, is provided for informational purposes only, and should not be construed as legal or tax advice. LifeYield, LLC, its employees, contractors and affiliates do not provide legal or tax advice. LifeYield cannot guarantee that such information is accurate, complete, or timely. Laws of a particular state or laws which may be applicable to a particular situation may have an impact on the applicability, accuracy, or completeness of such information.

Federal and state laws and regulations are complex and are subject to change. Changes in such laws and regulations may have a material impact on pre- and/or after-tax investment results. LifeYield makes no warranties with regard to such information or results obtained by its use. LifeYield disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Always consult an attorney or tax professional regarding your specific legal or tax situation.

THIS ANALYSIS AND ANY RELATED PLAN SHOULD NOT BE CONSTRUED AS A RECOMMENDATION TO ENGAGE IN ANY TRANSACTION. MUTUAL FUNDS, EXCHANGE TRADED FUNDS, UNIT INVESTMENT TRUSTS, VARIABLE ANNUITIES AND VARIABLE LIFE POLICIES ARE SOLD BY PROSPECTUS ONLY. FOR COMPLETE INFORMATION, INCLUDING CHARGES AND EXPENSES, PLEASE CONTACT YOUR (INVESTMENT ADVISER REPRESENTATIVE/FINANCIAL CONSULTANT) TO OBTAIN A PROSPECTUS. PLEASE READ IT CAREFULLY BEFORE INVESTING OR SENDING MONEY. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT SHARES, WHEN SOLD OR REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST.