#United States #Boston #SEI Investments #LifeYield #tax optimization

SEI Expands Wealth Management Capabilities with LifeYield Acquisition

In a move set to reshape the landscape of wealth management, SEI Investments Company (NASDAQ: SEIC) has completed the acquisition of LifeYield, a Boston-based technology provider known for its innovative tax-smart solutions. This strategic acquisition aims to revolutionize the wealth management process by delivering real-time, automated unified managed household (UMH) capabilities while maintaining cost-effectiveness.

With the merger, SEI stands to become a pioneer in the financial sector by unifying multiple account registrations under a single platform, facilitating a more cohesive financial strategy to optimize after-tax returns. LifeYield brings several core advantages to SEI, aimed at enhancing the efficiency of financial advisors and wealth managers while improving the investment outcomes for clients. Key elements include automated tools for tax optimization at scale, income generation across diversified models, and improved multi-account management.

Among the standout features integrated from LifeYield are:
1. Asset Location Optimization: This component advises clients on where to hold different types of investments, leading to maximized after-tax returns.
2. Tax-Loss Harvesting: It systematically identifies opportunities to sell investments at a loss, offsetting taxable gains while improving future returns.
3. Holistic Portfolio Management: This ongoing management balances and rebalances investments across all accounts to ensure optimal performance relative to clients' holistic financial aims.
4. Withdrawal Strategies: Tailored strategies for withdrawing funds effectively from retirement accounts, considering tax implications at every step.
5. Social Security Optimization: This feature offers insightful methods to enhance retirement income through strategic Social Security benefit claims.

The full integration of LifeYield's technology into the SEI Wealth PlatformSM elevates the investment experience for advisors and their clients, enabling them to execute personalized financial strategies. The cooperation is designed to streamline investment implementations across multiple household accounts, paving the way for improved client experiences and outcomes.

J. Womack, SEI's Chief Product Officer, emphasized the market dynamics that necessitated this acquisition. He stated, "With Millennials and Generation X reaching their peak earning years, and Baby Boomers transitioning to retirement, there’s a significant focus on tax management. This acquisition equips SEI to cater to these evolving investor demands by blending LifeYield's innovative technology with our robust investment and technology solutions."

Supporting this sentiment, Mark Hoffman, CEO of LifeYield, highlighted the potential for greater accessibility of tax-smart tools through SEI's established channels. Through integration, LIfeYield’s solutions can now reach a broader audience, enhancing the financial outcomes for clients across various demographics.

According to a Cerulli report, 86% of financial advisors acknowledge the importance of tax management reporting in their business strategies. SEI's existing on-demand Estimated Taxes Saved Report aligns with this trend, showcasing the fiscal benefits realized through proactive tax management. The forthcoming integration of LifeYield’s capabilities will augment this offering, illuminating the financial advantages of coordinated account management across households.

Arthur Worthington, a Senior Business Development Director at SEI, noted the transformative impact of tax optimization consciousness. He remarked, "This acquisition widens the gap between SEI and our competitors, providing advisors with greater control and personalization, ultimately driving growth in their firms... The era of holistic wealth management is upon us."

The acquisition will also allow SEI to build upon its previously established strategic partnership with LifeYield from 2022. This partnership focused on delivering wealth management solutions in the U.K. and among private banks and trust companies in the U.S.

In summary, this acquisition marks a notable evolution in SEI's service landscape, reinforcing its commitment to providing forward-thinking tax management solutions that not only align with contemporary investor needs but also set the stage for the future of wealth management. With LifeYield onboard, SEI enhances its technological arsenal, further affirming its leadership position within the financial services sector.