Financial asset product and method for implementing same

• US 20050289037A1
• Filed: 06/15/2004
• Published: 12/29/2005
• Est. Priority Date: 06/15/2004
• Status: Abandoned Application

• Current Assignee: Dollar Bank, Federal Savings Bank
• Original Assignee: Dollar Bank, Federal Savings Bank
• Inventors: Smith, Joseph B., Benack, Ben E., Hansen, Stephen C.
• Application Number:
  US10/868,372
• Publication Number:
  US 20050289037A1
• Time in Patent Office: Days
• US Class Current: 705/36.00R
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

The present invention relates to a financial asset product and a method for creation thereof, including a plurality of component instruments and a link among the components that interrelates the components as a unitary portfolio. The terms or other parameters of the components are arranged according to a preset plan of the depositor/investor. The method may include the steps of assessing the financial needs or goals of the depositor or investor, developing a predetermined or preset plan or strategy for the purchase, management, maintenance, sale, withdrawal and/or exchange of financial instruments. The instruments may be acquired at one time or over a period of time, also according to a preset plan.

Claims

1. A component financial asset product, comprising:

a plurality of financial asset instruments; and

a link among said financial asset instruments that interrelates said financial asset instruments as a unitary instrument portfolio wherein said linked instruments are selected, managed and sold according to a preset plan.

2. A financial asset product according to claim 1, wherein said financial asset instruments are selected from the group consisting of deposit instruments and investment instruments.

3. A financial asset product according to claim 2, wherein said deposit instruments are selected from the group consisting of certificates of deposit, checking and savings accounts.

4. A financial asset product according to claim 2, wherein said investment instruments are bonds.

5. A financial asset product according to claim 1, wherein said component financial asset instruments are selected from the group consisting of fixed term instruments and demand accounts.

6. A financial asset product according to claim 1, said link comprising administrative data common to each of said financial asset instruments.

7. A financial asset product according to claim 6, said administrative data comprising a common reference account number.

8. A financial asset product according to claim 1, wherein the management of said linked instruments further comprises reporting of interim composite status and performance of the linked instruments.

9. A financial asset product according to claim 1, wherein the management of said linked instruments further comprises optional changes to one of the components and the parameters of the components after initiation of the product.

10. A financial asset product according to claim 1, wherein the management of said linked instruments further comprises optional changes to one of the number and type of the components after initiation of the product.

11. A financial asset product according to claim 1, wherein the preset plan relating to said linked instruments is based upon the parameters of the components and the individual needs of the purchaser.

12. A financial asset product according to claim 11, wherein the preset plan relating to said linked instruments is based upon parameters selected from the group consisting of:

frequency of financial need, time to liquidity, funding amount, anticipated rate of growth, rate of liquidation, intermediate liquidity and additional planned contributions to the product.

13. A method of implementing a financial asset product, comprising:

obtaining a plurality of financial asset instruments; and

linking each of said financial asset instruments to one another to interrelate said financial asset instruments as a unitary instrument portfolio wherein funding of said linked instruments is selected, managed and withdrawn according to a preset plan.

14. A method according to claim 13, further comprising establishing at least one account which comprises at least one of said financial asset instruments.

15. A method according to claim 13, further comprising providing unitary reports relating to said unitary instrument portfolio.

16. A method according to claim 15, said unitary reports including information relating to each of said financial asset instruments.

17. to claim 15, said unitary reports including information relating to a strategy implemented by said preset plan.

18. A method according to claim 15, said unitary reports including information relating to the maturity of at least one component of the portfolio.

19. A method according to claim 15, wherein said unitary reports are presented in at least one of tangible and electronic forms.

20. A method according to claim 13, further comprising the step of establishing a blended return rate for the portfolio.

21. A method according to claim 13, wherein said financial asset instruments are selected from the group consisting of deposit instruments and investment instruments.

22. A method according to claim 21, wherein said deposit instruments are selected from the group consisting of certificates of deposit, checking and savings accounts.

23. A method according to claim 21, wherein said investment instruments are bonds.

24. A method according to claim 13, wherein said component financial asset instruments are selected from the group consisting of fixed term instruments and demand accounts.

25. A method according to claim 13, said link comprising administrative data common to each of said financial asset instruments.

26. A method according to claim 25, said administrative data comprising a common reference account number.

27. A method according to claim 15, wherein the unitary reports comprise reporting of interim composite status and performance of the linked instruments.

28. A method according to claim 13, further comprising the step of changing at least one of the components and the parameters of the components after initiation of the product.

29. A method according to claim 13, further comprising the step of changing at least one of the number and type of the components after initiation of the product.

30. A method according to claim 13, wherein the preset plan relating to said linked instruments is based upon the parameters of the components and the individual needs of the purchaser.

31. A method according to claim 30, wherein the preset plan relating to said linked instruments is based upon parameters selected from the group consisting of:

frequency of financial need, time to liquidity, funding amount, anticipated rate of growth, rate of liquidation, intermediate liquidity and additional planned contributions to the product.

32. A method of automatically maintaining a strategy of a depositor in a portfolio having Y fixed term instruments, wherein Y is at least two, each of said fixed term instruments maturing on a maturity date, wherein one of said Y fixed term instruments matures every period X, the method comprising:

monitoring each of said fixed term instruments to determine when each of said fixed term instruments is about to mature;

sending, for each fixed term instrument about to mature, a notice to said depositor prior to the maturity date of said fixed term instrument about to mature, said notice informing the depositor that said fixed term instrument about to mature will mature on the maturity date of said fixed term instrument about to mature; and

renewing said fixed term instrument about to mature into a fixed term instrument having a term equal to YX after the fixed term instrument about to mature actually matures unless the depositor provides instructions not to so renew said fixed term instrument about to mature.

33. A method according to claim 32, said fixed term instruments being certificates of deposit.

34. A method according to claim 32, further comprising assigning a common reference account number to each of said Y fixed term instruments.

35. A method according to claim 32, said notice including an estimated current period blended rate for said portfolio, said estimated current period blended rate estimating a current period blended rate that will apply to said portfolio if said fixed term instrument about to mature is renewed into a fixed term instrument having a term equal to YX.

36. A method according to claim 35, said notice further including information relating to each of said Y fixed term instruments other than said fixed term instrument about to mature.

37. A method according to claim 32, wherein prior to said renewing step being performed for the first time said Y fixed term instruments have terms equal to X, 2X . . . YX.

38. A method according to claim 32, further comprising the following steps after said sending step and before said renewing step:

determining whether said depositor wants to add a new fixed term instrument to said portfolio, and if so, (i) adding said fixed term instrument to said portfolio, said new fixed term instrument having a term equal to (Y+1)X, and (ii) thereafter setting Y equal to Y+1 for each time said renewing step is performed in the future.

39. A method according to claim 32, further comprising the following steps prior to said sending step:

determining whether said depositor wants to add a new fixed term instrument to said portfolio, said new fixed term instrument being purchased by said depositor, and, if so, (i) adding said new fixed term instrument to said portfolio, said new fixed term instrument having a term equal to YX+Z, wherein Z is an amount of time left before the fixed term instrument in said portfolio currently closest to maturity actually matures, and (ii) thereafter setting Y=Y+1 for each time said renewing step is performed in the future.

40. A method according to claim 32, further comprising establishing said portfolio, wherein each of said fixed term instruments has an APY that is higher than an APY offered for CDs of like terms and amounts when purchased individually.

41. A method according to claim 32, wherein in said renewing step said fixed term instrument having a term equal to YX has a principal amount equal to a principal amount of said fixed term instrument about to mature.

42. A method according to claim 33, wherein in said renewing step said fixed term instrument having a term equal to YX has a principal amount equal to a principal amount of said fixed term instrument about to mature plus at least a portion of an interest amount earned by said fixed term instrument about to mature.

43. A financial asset product, comprising Y fixed term instruments, wherein Y is at least two, wherein one of said Y fixed term instruments matures every period X, and wherein each of said Y fixed term instruments automatically renews into a fixed term instrument having a term equal to YX when it matures unless instructions not to do so are given by a depositor holding said financial asset product.

44. A financial asset according to claim 43, said fixed term instruments being certificates of deposit.

45. A financial asset product according to claim 43, said fixed term instruments being linked by a common reference account number.

46. A financial asset product according to claim 43, wherein each of said fixed term instruments has an APY that is higher than an APY offered for CDs of like terms and amounts when purchased individually.

47. A method of automatically maintaining a strategy of a depositor in a portfolio having B fixed term instruments, wherein B is at least two, wherein at a first point in said strategy each of said fixed term instruments have a first term and mature on a first maturity date such that at said first point one of said fixed term instruments will mature every period X, and wherein at a second point in said strategy all of said fixed term instruments will mature on a common maturity date, the method comprising:

monitoring each of said fixed term instruments to determine when each of said fixed term instruments is about to mature;

sending, for each fixed term instrument about to mature, a notice to said depositor prior to said first maturity date of said fixed term instrument about to mature, said notice informing the depositor that said fixed term instrument about to mature will mature on said first maturity date of said fixed term instrument about to mature; and

renewing said fixed term instrument about to mature into a fixed term instrument having a term equal to the difference between BX and the first term of said fixed term instrument about to mature unless (i) the depositor provides instructions not to so renew said fixed term instrument about to mature or (ii) said fixed term instrument about to mature has a first term equal to BX.

48. A method according to claim 47, said fixed term instruments being certificates of deposit.

49. A method according to claim 47, further comprising assigning a common reference account number to each of said fixed term instruments.

50. A financial asset product for implementing a strategy over a period of time, comprising B fixed term instruments, wherein B is at least two, wherein at a first point in said period of time each of said fixed term instruments have a first term and mature on a first maturity date such that at said first point one of said fixed term instruments will mature every period X, wherein at a second point in said period of time all of said fixed term instruments will mature on a common maturity date, and wherein between said first point and said second point each of said B fixed term instruments, except for a selected one of said fixed term instruments having a term equal to BX, automatically renews when it matures into a fixed term instrument having a term equal to the difference between BX and the first term of said fixed term instrument unless instructions not to do so are given by a depositor holding said financial deposit product.

51. A financial asset product according to claim 50, said fixed term instruments being certificates of deposit.

52. A financial deposit product according to claim 50, said fixed term instruments being linked by a common reference account number.