HD Investment Services has enhanced its 1040 Analyst wealth management tool with additional retirement planning features and other improvements.
The software draws upon each client’s tax data and incorporates information about their personal financial situation, goals and needs, to deliver tax insights that enable advisors providing tax and financial planning services to introduce a detailed discussion of investment and wealth management opportunities. Features include analyzing sources of interest income, optimally allocating dividend-producing investments, or maximizing retirement plan contributions. Since its rollout in June, 1040 Analyst has already been used by nearly 800 HD Vest-affiliated financial advisors and applied to more than 100,000 client tax returns, bringing in an estimated $94 million in new investment assets for HD Vest-affiliated advisors and clients.
The latest enhancements include enabling financial advisors who are not tax professionals to manually input their clients’ tax form data to yield the same customized output through a “snap app” process. Other new features help advisors and clients identify opportunities for buy-sell life insurance agreements for business owners, take advantage of passive activity losses, do tax loss harvesting, determine the optimal timing for taking Social Security benefits, and calculate the most advantageous distribution schedule for retirement plan assets.
“The real story here is in our clients’ responsiveness to this tool and in how they have embraced the value of the 1040 Analyst output, as seen in their generation of additional investment assets,” said Scott Rawlins, managing director of national sales at HD Vest, in a statement. “Those of our advisors who also provide tax advisory services reported that 88 percent of the families to whose tax returns they applied the 1040 Analyst tool had no prior investment planning programs with them. Going through the 1040 Analyst process resulted in a large number of new client conversions and a significant new inflow of investment assets, indicating the magnitude of the opportunity this tool represents.”
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