Methods for issuing, distributing, managing and redeeming investment instruments providing normalized annuity options

• US 20060212380A1
• Filed: 05/17/2006
• Published: 09/21/2006
• Est. Priority Date: 10/19/2001
• Status: Abandoned Application

• Current Assignee: Retirement Engineering Incorporated
• Original Assignee: Retirement Engineering Incorporated
• Inventors: Williams, James Benjamin, Gadenne, Francois G.
• Application Number:
  US11/435,618
• Publication Number:
  US 20060212380A1
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A method of issuing and managing investment instruments called “Pension Shares” which preferably take the form of securities that represents a claim against and is secured by an investment fund. A Pension Share entitles its holder to receive, at a specified maturity date, either a lump sum payment amount or, at the option of said holder, to receive a sequence of annuity payments. The Pension Share issuer creates and manages the investment fund such that its net asset value at the maturity date will be adequate to make the lump sum payment or provide the holder with the annuity. A preferred form of Pension Share provides an annuity option of one dollar per for the life of the holder, or his or her survivor, both of whom are at a predetermined age at the maturity date. A Pension Share may be redeemed on demand in advance of the maturity date so that it may be exchanged for a Pension Share having a different maturity date if the holder'"'"'s plans change.

Claims

1. A method for producing and distributing an investment instrument comprising, in combination, the steps of:

creating a written investment instrument in which the issuer of said instrument promises to transfer an annuity to the holder of said instrument upon demand by said holder and the presentation of an annuity purchase price amount by said holder at a future annuitization date.

issuing said instrument to a holder prior to said annuitization date in return for an initial purchase price payment, said instrument as issued specifying;

a) said annuitization date,

b) said annuity purchase price amount to be presented by said holder on or about said annuitization date,

c) the amounts and times of periodic annuity payments which said annuity will entitle said holder to receive in the event annuity is transferred to said holder pursuant to said instrument.

2. A method for producing and distributing an investment instrument as set forth in claim 1 wherein said security as issued specifies said amounts and times of said periodic annuity payments as an integral number of units of a specified currency payable at periodic calendar intervals.

3. A method for producing and distributing an investment instrument as set forth in claim 2 wherein said integral number of monetary unit of a specified currency payable at periodic calendar intervals is a specified integral number of dollars payable monthly, quarterly or annually.

4. A method for producing and distributing investment instrument as set forth in claim 2 wherein said instrument represents a number of units or shares owned by said holder and wherein said specified integral number of monetary unit of specified currency payable at periodic calendar intervals is one dollar per month for each of said units or shares.

5. A method for issuing and redeeming an investment instrument that entitles its holder to receive a specified minimum annuity income after a specified annuitization date, said method comprising, in combination, the steps of:

issuing an investment instrument denominated as a number of units or shares each of which entitles the owner of said instrument to purchase an annuity on or about said annuitization date that if purchased will entitle said holder to thereafter receive a specified monetary unit of a specified currency payable at periodic calendar intervals,

on or about said annuitization date, upon demand by said holder and in exchange for an annuity purchase price amount specified by said instrument when issued, transferring to said holder of said instrument an annuity that entitles said holder to thereafter receive for each of said units or shares at least said specified monetary unit of said specified currency payable at said periodic calendar intervals.

6. The method of issuing and managing an investment product that gives its holder the option to purchase a specified annuity in exchange for a predetermined annuity purchase price at a future annuitization date specified by said investment product, said method including the steps of:

denominating said product as a number of units or shares each of which entitles said holder to purchase, in exchange for predetermined annuity purchase price presented by said holder on or about said annuitization date, the right to receive each month after said annuitization date an annuity income specified as a single monetary unit of a specified currency,

upon the presentation by said holder of said annuity purchase price, exchanging all or part of said units or shares for said annuity specified in said investment product for said annuity, and

thereafter paying to said holder of said annuity said single monetary unit of a specified currency each month for each of said units or shares.