Systems and methods for improving investment performance

• US 20060253364A1
• Filed: 07/07/2006
• Published: 11/09/2006
• Est. Priority Date: 02/09/2001
• Status: Active Grant

• Current Assignee: Tarbox Intellectual Property, LLC
• Original Assignee: Brian C. Tarbox, Mark Greenstein
• Inventors: Greenstein, Mark, Tarbox, Brian C.
• Granted Patent: US 8,301,527 B2
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

Methods for a data processor implemented system monitor for enabling persons to turn over the allocation their investment assets, and/or receive assistance concerning how to receive disbursements from investments, in a manner that is free from or ameliorates the traditional conflicts of interest in previous systems. The methods are adapted to ameliorate the tension between other functions where the compensation may be affected by asset allocation. The systems and methods collect, monitor, and direct information from persons who hold indicative data, e.g., employers, to provide professional asset allocation services including automatic allocation, rebalancing, and reallocation of investment assets, on a regular basis; as well as assistance in determining how much to save or how to receive disbursements in a manner that ameliorates conflicts of interest, which, in the case of employee benefit plans, is consistent with the regulatory restraints of ERISA.

Claims

1. A method for providing discretionary asset allocation services for an investor participating in an employer-sponsored benefit plan, comprising:

selecting an investment vehicle for the investor, based on (i) investor data stored in a storage device, and (ii) computer software which is implemented, developed, approved, or maintained by an independent person who is independent of any other party who may earn variable fees or profits based on the allocation of investments in the investment vehicle;

providing discretionary asset allocation services for the investor, the providing of discretionary asset allocation services including reallocating investments for the investor; and

wherein the providing of discretionary asset allocation services for the investor are provided by;

(i) a conflicted person who receives variable fees or profits for providing services related to the discretionary asset allocation program, or (ii) the conflicted person in concert with a person who is substantially independent of the conflicted person.

2. A method according to claim 1, further comprising the step of:

reducing possible economic conflict of interest by separating or appropriately combining, the determination of how much to save and how to allocate investment assets from at least one other fee generating function.

3. A method according to claim 1, wherein the structure for providing discretionary asset allocation services for the at least one investor ameliorates conflicts of interest between (i) establishing discretionary asset allocation functions and (ii) money management functions.

4. A method according to claim 1, wherein the structure for providing discretionary asset allocation services for the at least one investor provides one or more investment vehicles including at least one professionally managed commingled investment vehicle.

5. A method for providing discretionary asset allocation services for an investor participating in an employer-sponsored benefit plan, comprising:

making an investment in an investment vehicle for the investor, based on changing investor data including investor age;

automatically changing at least one investment in the investor'"'"'s investment vehicle based on the changing investor data including investor age, said automatically changing step being provided in accordance with allocation software that is developed, approved, or maintained by a person who does not derive fees or profits which vary substantially depending on the automatic changing of the at least one investments in the investor'"'"'s investment vehicle.

6. A method according to claim 5, wherein the automatically changing step is performed by allocation software which is implemented, developed, approved, or maintained by at least one independent person who is independent of any other party who may earn variable fees or profits based on the changing of the investments in the investor'"'"'s investment vehicle

7. A method according to claim 5, wherein the providing step is automatically provided by the at least one person who does not derive any fees or profits that substantially vary in accordance with the changing of the investments in the investor'"'"'s investment vehicle.

8. A method for providing a discretionary asset allocation program for an investor participating in an employer-sponsored benefit plan, the discretionary asset allocation program provided by (i) at least one conflicted person who receives variable fees or profits for providing services related to the discretionary asset allocation program, or (ii) the at least one conflicted person in concert with at least one person who is substantially independent of the at least one conflicted person, comprising the steps of:

providing at least one discretionary asset allocation program for the at least one investor;

storing data for the at least one investor in data storage media;

automatically implementing discretionary investment allocation decisions utilizing the provided discretionary asset allocation program, the discretionary investment allocation decisions are automatically implemented by a process that reduces or eliminates the at least one conflicted person'"'"'s ability to self deal, and wherein the basis for the discretionary investment allocation decisions are implemented, developed, or maintained by the at least one substantially independent person; and

using computer-readable media to automatically implement discretionary investment allocation decisions, wherein the computer-readable media is implemented, developed, approved, or maintained by the at least one substantially independent person.

9. A method according to claim 8, wherein the step of automatically implementing discretionary investment allocation decisions includes the step of eliminating or at least ameliorating possible economic conflict of interest by separating or appropriately combining, the determination of how much to save and how to allocate investment assets from other fee generating functions.

10. A method according to claim 8, wherein the computer-readable media is created by one or more computer programmers who have no affiliation with the at least one conflicted person who may receive variable fees or profits under the program by reason of asset allocation.

11. A method according to claim 8, wherein the step of automatically implementing discretionary investment allocation decisions changes investments in an investor'"'"'s discretionary asset allocation program based on (i) the investor'"'"'s current age or (ii) the investor'"'"'s projected retirement age.

12. A method for providing discretionary asset allocation services for at least one investor participating in an employer-sponsored benefit plan, comprising the steps of:

identifying investment needs of the at least one investor based on investor data, the investor data including at least investor age;

providing discretionary asset allocation services for the at least one investor based on the investor data, said step of providing discretionary asset allocation services including the step of providing at least one investment vehicle for the at least one investor;

wherein the step of providing discretionary asset allocation services for the at least one investor includes the step of selecting at least one investment vehicle based on a computer program implemented, developed, approved, or maintained by at least one independent person who is independent of any other party who may earn variable fees or profits based on the allocation of investments in the at least one investment vehicle;

wherein the step of providing discretionary asset allocation services for the at least one investor includes the step of providing the discretionary asset allocation services by;

(i) at least one conflicted person who receives variable fees or profits for providing services related to the discretionary asset allocation program, or (ii) the at least one conflicted person in concert with at least one person who is substantially independent of the at least one conflicted person; and

reducing possible economic conflict of interest by separating the determination of how much to invest and how to allocate investment assets from the at least one conflicted person.

13. The method of claim 12, wherein the step of providing discretionary asset allocation services for the at least one investor ameliorates conflicts of interest between (i) establishing discretionary asset allocation functions and (ii) money management functions.

14. The method of claim 12, wherein the step of providing discretionary asset allocation services for the at least one investor includes the step of providing one or more investment vehicles including at least one professionally managed commingled investment vehicle.