Method and tool for retirement income management

• US 20080114703A1
• Filed: 11/13/2006
• Published: 05/15/2008
• Est. Priority Date: 11/13/2006
• Status: Abandoned Application

• Current Assignee: Thrivent Financial For Lutherans
• Original Assignee: Thrivent Financial For Lutherans
• Inventors: Fredlund, Stephen Michael, Dahlberg, Kenneth Alfred
• Application Number:
  US11/598,368
• Publication Number:
  US 20080114703A1
• Time in Patent Office: Days
• US Class Current: 705/36R
• 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

Abstract

The present invention is a method of monitoring a retirement income plan and managing retirement income through use of a retirement income planning tool. The retirement income planning tool is comprised of modules working together in order to facilitate planning, monitoring, management and generation of a retirement income plan. The projected assets are generated in response to the processing of financial data input into the retirement income planning tool in view of potential investment performance scenarios. The financial data input into the retirement income planning tool includes at least a customer'"'"'s desired retirement income levels, assets level and retirement compensation levels. The retirement income plan is comprised of at least data representative of projected retirement compensation, asset levels and projected asset withdrawals. The retirement income planning tool compares a client'"'"'s retirement compensation to the comprehensive retirement income levels desired in order to determine the level of asset withdrawals necessary to achieve the comprehensive retirement income levels. The method of monitoring includes guidelines for dynamic management and monitoring of retirement asset withdrawals and investments in order to facilitate retirement asset utilization over the life of the retirement income plan.

Claims

1. A method of monitoring and managing retirement income through use of a retirement income planning tool that facilitates the generation of a retirement income plan in response to processing projected assets and retirement compensation levels, the method comprising the steps of:

(a) inputting into the income planning tool financial data representative of a customer'"'"'s desired retirement income, assets and retirement compensation;

(b) allocating said assets into at least one investment vehicle in response to data input by said customer, wherein said at least one investment vehicle is comprised of an asset performance projection module configured to project the performance of a customer'"'"'s investment assets in a plurality of alternative scenarios, wherein each investment scenario is representative of potential future market conditions;

(c) generating a retirement income plan comprised of at least data representative of projected retirement compensation, projected asset levels and projected asset withdrawals, wherein said projected assets are comprised of data representative of the projected performance of said assets processed by said performance projection module; and

(d) comparing said retirement income plan to said desired retirement income levels in order to identify periods in which said retirement income plan projects income levels to be lower than said customer'"'"'s desired income levels, and when periods are identified in which said retirement income plan projects income levels to be lower than said customer'"'"'s desired income levels, facilitating modification of said retirement financial data input into the income planning tool in order to generate an updated retirement income plan.

2. The method of claim 1 further including the step of identifying at least one date within a retirement income plan when it is advantageous to purchase a single premium immediate annuity and providing said customer with an option to incorporate said single premium immediate annuity into said retirement income plan, wherein said date identified is in accordance with when the annuity payout rate is not greater than the current withdrawal rate.

3. The method of claim 1 wherein said assets are comprised of at least one of an IRA, 401(k), variable annuity, CD, fixed annuity, bank savings, 457, 403b, mutual funds, and general securities.

4. The method of claim 1 wherein said asset withdrawal values equal the difference between desired retirement income levels for a period of time and retirement compensation during said period of time.

5. The method of claim 1 wherein the data input by said customer is representative of the risk said customer identifies as acceptable in association with investing said assets.

6. A method of monitoring and managing retirement income in response to changes in retirement compensation and in the value of retirement assets, the method comprising the steps of:

(a) inputting retirement financial data into a retirement income planning tool, wherein said retirement financial data is representative of a customer'"'"'s desired retirement income, retirement compensation and retirement assets;

(b) allocating said retirement assets into at least one investment vehicle comprised of an asset performance projection module configured to project the performance of a customer'"'"'s investment assets in a plurality of alternative scenarios, wherein each investment scenario is representative of potential future market conditions and said at least one investment vehicle is selected based upon a risk level, to which said customer is comfortable, and rate of growth necessary for said retirement assets to reach a level needed to achieve said customer'"'"'s desired retirement income;

(c) generating data representative of a retirement income plan, wherein said retirement income plan is comprised of said customer'"'"'s retirement compensation and projected withdrawals from said retirement assets;

(d) comparing said retirement income plan to said desired retirement income in order to identify periods in which said retirement income plan projects said retirement income to be lower than said customer'"'"'s desired retirement income; and

;

(e) when periods are identified in which said retirement income plan projects retirement income to be lower than said customer'"'"'s desired retirement income in response to changes in the value of said retirement assets, modifying said retirement income plan by changing the level of withdrawals from said retirement assets.

7. The method of claim 6 wherein the at least one investment vehicle is comprised of at least two accounts, an income buffer account and a growth account, wherein said income buffer account is comprised of a portion of said retirement assets that are liquid for withdrawal as retirement income over a defined period of time.

8. The method of claim 7 wherein said defined period of time is annual.

9. The method of claim 7 wherein when said changes in the value of said assets is an annual increase in the value of said assets, wherein an amount of said annual increase in value of said assets up to an amount equivalent to an annual withdrawal amount is distributed to said buffer account.

10. The method of claim 6 wherein said asset withdrawal values equal the difference between retirement income levels and annual retirement compensation.

11. The method of claim 6 wherein the assets are comprised at least one of an IRA, 401(k), variable annuity, CD, fixed annuity, bank savings, 457, 403b, mutual funds, and general securities.

12. The method of claim 6 further including the step of identifying at least one date within a retirement income plan when it is advantageous to purchase a single premium immediate annuity and providing said customer with an option to incorporate said single premium immediate annuity into said retirement income plan, wherein said date identified is in accordance with when the annuity payout rate is not greater than the current withdrawal rate.

13. The method of claim 6 further including the generation a warning indicator when withdrawals from said retirement assets reach a level that is not sustainable over the life of said retirement income plan.

14. A method of advising and managing retirement income through implementation of an investment plan that adapts to changes in retirement asset values and retirement compensation levels, the method comprising the steps of:

(a) allocating said retirement assets into at least one investment vehicle, wherein said at least one investment vehicle is selected by said customer based on an investment risk level to which said customer is comfortable;

(b) generating data representative of a retirement income plan, wherein said retirement income plan reflects said customer'"'"'s retirement compensation, retirement asset and projected withdrawals from said retirement assets;

(c) generating a warning indicator when said projected withdrawals from said retirement assets reach a level that is not sustainable over the life of said retirement income plan; and

(d) modifying said retirement income plan by changing the level of withdrawals from said retirement assets to a level that allows said retirement income plan to facilitate generation of retirement income of the life of said retirement income plan.

15. The method of claim 14 further including the step of identifying at least one date within a retirement income plan when it is advantageous to purchase a single premium immediate annuity and providing said customer with an option to incorporate said single premium immediate annuity into said retirement income plan, wherein said date identified is in accordance with when the annuity payout rate is not greater than the current withdrawal rate.

16. The method of claim 14 wherein said assets are comprised of at least one of an IRA, 401(k), variable annuity, CD, fixed annuity, bank savings, 457, 403b, mutual funds, and general securities.

17. The method of claim 14 wherein said asset withdrawal values equal the difference between desired retirement income levels for a period of time and retirement compensation during said period of time.

18. The method of claim 14 further including the step of allocating said assets into at least one investment vehicle comprised of an asset performance projection module configured to project the performance of a customer'"'"'s investment assets in a plurality of alternative scenarios, wherein said projections of the growth of said assets is processed in order to determine whether said asset withdrawal levels are sustainable over the life of said retirement income plan.

19. The method of claim 14 wherein said data representative of a retirement income plan includes an optional component specifying an amount of guaranteed lifetime income annuity needed to be purchased prior to retirement on a specified date in order to satisfy a customer'"'"'s desired retirement income.

20. The method of claim 14 wherein the at least one investment vehicle is comprised of at least two accounts, a buffer account and a growth account, wherein said buffer account is comprised of a portion of said retirement assets that are liquid for withdrawal as retirement income over a defined period of time.