Asset and liability modeling tool

• US 20070239572A1
• Filed: 03/27/2006
• Published: 10/11/2007
• Est. Priority Date: 03/27/2006
• Status: Active Grant

• Current Assignee: Lifescale Ip Limited
• Original Assignee: Morgan Stanley
• Inventors: Braben, David, Foster, Richard, Thomas, Matthew, Roach, Jonathan, Harris, Trevor, Donner, Marc
• Granted Patent: US 7,627,512 B2
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06F 3/04817 using icons graphical or visual programming using iconic symbols G06F8/34
• CPC Class Codes: G06F 3/0482 Interaction with lists of selectable items, e.g. menus
• CPC Class Codes: G06F 3/04842 Selection of displayed objects or displayed text elements G06F3/0482 takes precedence
• 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 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/10 Tax strategies

Abstract

A method of displaying results of a financial model for forecasting at least one financial variable relating to a client. The method comprises the steps of receiving asset and liability data regarding the client; generating forecasted values for the financial variables over a number of simulations using the asset and liability data; and displaying a topographical chart on a user interface. The topographical chart may be positioned on a plane shown in the user interface. The plane may be defined by a time axis and a value axis for the at least one financial variable, such that a coordinate set on the plane represents the value of the at least one financial variable at a time point. The height of a first point on the topographical chart corresponding to the coordinate set may indicate a portion of the simulations that result in the coordinate set.

Claims

1. A method of displaying results of a financial model for forecasting at least one financial variable relating to a client comprising:

receiving asset and liability data regarding the client;

generating forecasted values for the at least one financial variable over a number of simulations using the asset and liability data; and

displaying a topographical chart on a user interface, wherein the topographical chart is positioned on a plane shown in the user interface, wherein the plane is defined by a time axis and a value axis for the at least one financial variable, such that a coordinate set on the plane represents the value of the at least one financial variable at a time point, and wherein a height of a first point on the topographical chart corresponding to the coordinate set indicates a portion of the simulations that result in the coordinate set.

2. The method of claim 1, wherein a height of a second point on the topographical chart indicates a portion of the simulations that result in a second coordinate set corresponding to the second point.

3. The method of claim 1, wherein a color of the first point indicates the portion of the simulations that result in the coordinate set.

4. The method of claim 1, wherein a color of the first point indicates the desirability of the value of the at least one financial variable at the time point represented by the coordinate set.

5. The method of claim 1, wherein the topographical chart further comprises a representation of a goal, wherein the representation comprises an indication of a portion of the number of simulations where the goal is met.

6. The method of claim 5, wherein the indication is at least one of a color of the representation of the goal, and a number associated with the representation of the goal.

7. The method of claim 5, wherein the goal describes a retirement of the client, and wherein a success rate of the retirement is indicated for each of a plurality of time blocks included in the retirement.

8. The method of claim 1, wherein the topographical chart further comprises:

a cursor configured to be placed on the graphical representation at a first point on the time axis; and

an information field configured to display information about the values of the financial variables over the number of simulations at the first point on the time axis.

9. The method of claim 1, wherein the asset and liability data includes an estimate of yearly expenses of the client.

10. The method of claim 9, wherein the estimate of yearly expenses of the client are broken into categories, wherein the sum of the categories is equal to the estimate.

11. The method of claim 10, wherein one of the categories is an Other category and wherein the Other category includes a difference between the estimate and the sum of the remaining categories.

12. A method of displaying results of a financial model for forecasting at least one financial variable relating to a client, the user interface comprising:

receiving asset and liability data regarding the client;

generating forecasted values for the at least one financial variable over a number of simulations using the asset and liability data; and

displaying a graphical representation of the forecasted values for the at least one financial variable as a function of time;

displaying a movable cursor configured to be placed on the graphical representation, wherein the position of the cursor indicates a point in time;

displaying an information field configured to display information about the at least one financial variable at the point in time corresponding to a location of the cursor.

13. The method of claim 12, wherein the information about the at least one financial variable comprises a representation of a portion of the simulations that result in a first state of the client at the point in time.

14. The method of claim 13, wherein the first state is related to at least one of the group consisting of whether the client is alive, the health of the client, the disability status of the client, and the long-term care status of the client.

15. The method of claim 12, wherein the at least one financial variable includes a return on at least one asset of the client.

16. The method of claim 12, wherein the at least one financial variable includes a level of borrowing of the client.

17. The method of claim 12, wherein the information about the at least one financial variable comprises a distribution of the at least one financial variable at the point in time over the simulations.

18. The method of claim 12, wherein the user interface further comprises a plurality of navigation buttons, whereby selecting one or more of the plurality of navigation buttons changes the viewing angle of the graphical representation within the user interface.

19. The method of claim 12, further comprising a representation of a goal of the client, wherein the representation is positioned at a second point in time, and wherein the representation includes an indication of a portion of the simulations in which the goal is met.

20. The method of claim 19, wherein the second point in time corresponds to a start date of the goal.

21. The method of claim 19, wherein placing the cursor at the second point in time displays detailed information about the goal.

22. The method of claim 21, wherein the detailed information about the goal is editable.

23. The method of claim 19, wherein the indication is at least one of a color of the representation, and a number included in the representation.

24. The method of claim 19, wherein the goal describes a retirement of a client, and wherein a success rate of the retirement is indicated for a plurality of time blocks included in the retirement.

25. The method of claim 12, wherein the graphical representation comprises:

a time axis; and

a value axis for the at least one financial variable, such that a coordinate set on the plane represents the value of the at least one financial variable at a time point, and wherein the time axis and the second axis define a plane;

a topographical chart positioned on the time axis and the value axis, wherein a height of a first point on the topographical chart corresponding to the coordinate set indicates a portion of the simulations that result in the coordinate set.

26. A method for generating a model of at least one financial variable over a first time period, the method comprising:

receiving a plan relating to a client, the plan comprising;

a desired retirement age of the client; and

a desired retirement income of the client;

generating a number of simulations of at least one financial variable;

indicating a portion of the simulations that result in the client meeting the desired retirement income during a first retirement time block; and

indicating a portion of the simulations that result in the client meeting the desired retirement income during a second retirement time block.

27. The method of claim 26, further comprising, indicating results of the model as a graphical representation.

28. The method of claim 27, wherein the graphical representation comprises:

a time axis; and

a value axis for the at least one financial variable, such that a coordinate set on the plane represents the value of the at least one financial variable at a time point, and wherein the time axis and the second axis define a plane;

a topographical chart positioned on the time axis and the value axis, wherein a height of a first point on the topographical chart corresponding to the coordinate set indicates a portion of the simulations that result in the coordinate set.

29. The method of claim 27, wherein the graphical representation further comprises:

a cursor configured to be placed on the graphical representation at a position indicating a point in time; and

an information field configured to display information about the at least one financial variable at the point in time.

30. The method of claim 26, further comprising receiving a value for the number of simulations to be generated.

31. The method of claim 26, further comprising receiving an economic world view to be considered by the simulations.

32. The method of claim 26, wherein the plan further comprises data related to a first financial goal, the data related to the first financial goal comprising, a start date for the first financial goal, a minimum amount for the first goal, a desired amount for the first goal, and a priority for the first goal.

33. The method of claim 26, wherein the first retirement time block comprises a period of ten years beginning on the date of the client'"'"'s retirement.

34. The method of claim 33, wherein the second retirement time block comprises a period of ten years beginning at the end of the first retirement time band.

35. A method of using a financial modeling tool, the method comprising:

receiving abbreviated asset and liability data about a client;

generating forecasted values for at least one financial variable over a number of simulations using the abbreviated asset and liability data;

displaying a graphical representation of the forecasted values for the at least one financial variable as a function of time; and

receiving additional asset and liability data about the client;

generating additional forecasted values for the at least one financial variable over the number of simulations using at least the additional asset and liability data.

36. The method of claim 35, wherein the occurrence of the generating forecasted values step and the occurrence of the displaying a graphical representation of the forecasted values step overlap in time.

37. The method of claim 36, wherein the occurrence of the displaying a graphical representation step and the occurrence of the receiving additional asset and liability data step overlap in time.

38. The method of claim 35, further comprising supplementing the abbreviated asset and liability data with estimated asset and liability data for generation of the forecasted values.

39. The method of claim 35, further comprising:

displaying a movable cursor configured to be placed on the graphical representation, wherein the position of the cursor indicates a point in time; and

displaying an information field configured to display information about the at least one financial variable at the point in time corresponding to a location of the cursor.

40. The method of claim 35, wherein the graphical representation comprises:

a time axis; and

a value axis for the at least one financial variable, such that a coordinate set on the plane represents the value of the at least one financial variable at a time point, and wherein the time axis and the second axis define a plane;

a topographical chart positioned on the time axis and the value axis, wherein a height of a first point on the topographical chart corresponding to the coordinate set indicates a portion of the simulations that result in the coordinate set.

41. The method of claim 35, wherein generating additional forecasted values for the at least one financial variable comprises considering at least a portion of the abbreviated asset and liability data.

42. The method of claim 35, wherein receiving the abbreviated asset and liability data comprises receiving the abbreviated asset and liability data in a single user interface screen.

43. A method for generating a model of at least one financial variable describing a client, the method comprising:

receiving a first goal relating to the client, the first goal comprising;

a desired amount of the first goal; and

a desired timing of the first goal;

receiving a second goal relating to the client, the second goal comprising;

a desired amount of the second goal; and

a desired timing of the second goal;

generating a number of simulations of the at least one financial variable over the first time period considering the first goal and the second goal;

indicating a portion of the simulations that result in the client meeting the desired amount and desired timing of the first goal; and

indicating a portion of the simulations that result in the client meeting the desired amount and desired timing of the second goal.

44. The method of claim 43, further comprising receiving a third goal, wherein the third goal comprises a desired amount of the third goal and a desired timing of the third goal.

45. The method of claim 44, wherein the generating a number of simulations of the at least one financial variable also considers the third goal.

46. The method of claim 44, further comprising indicating a portion of the simulations that result in the client meeting the desired amount and the desired timing of the third goal.

47. The method of claim 43, wherein generating the number of simulations of the at least one financial variables comprises considering a state of the client during at least one point in time during each simulation.

48. The method of claim 43, wherein the state of the client includes at least one of the group consisting of dead, in ill-health, in long term care, and in disability.

49. The method of claim 43, further comprising, indicating results of the model as a graphical representation.

50. The method of claim 49, wherein the graphical representation comprises:

a time axis; and

a value axis for the at least one financial variable, such that a coordinate set on the plane represents the value of the at least one financial variable at a time point, and wherein the time axis and the second axis define a plane;

a topographical chart positioned on the time axis and the value axis, wherein a height of a first point on the topographical chart corresponding to the coordinate set indicates a portion of the simulations that result in the coordinate set.

51. The method of claim 49, wherein the graphical representation further comprises:

a cursor configured to be placed on the graphical representation at a position indicating a point in time; and

an information field configured to display information about the at least one financial variable at the point in time.