USER INTERFACE FOR A FINANCIAL ADVISORY SYSTEM

• US 20080154792A1
• Filed: 11/01/2007
• Published: 06/26/2008
• Est. Priority Date: 12/02/1997
• Status: Active Grant

• Current Assignee: Financial Engines, LLC.
• Original Assignee: Financial Engines Incorporated (Edelman Financial Engines LLC)
• Inventors: Jones, Christopher L., Sharpe, William F., Maggioncalda, Jeff N., Tauber, Ellen, Fine, Ken
• Granted Patent: US 7,774,257 B2
• Time in Patent Office: Days
• US Class Current: 705/36R
• 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
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A financial advisory system and a user interface for such a system are provided. According to one embodiment, information regarding a retirement income goal of an individual is received. Multiple input values for corresponding decision variables are also received. The decision variables include an indication regarding a target retirement age for the individual, an indication regarding anticipated monetary contributions directed toward the retirement income goal and an indication regarding the individual'"'"'s risk tolerance. A probability distribution dependent upon the decision variables is generated based on simulated market return scenarios and representing a set of possible future portfolio values based on the plurality of inputs. Finally, feedback regarding the likelihood of the individual achieving the retirement income goal is provided in view of the input values by graphically depicting one or more of the set of possible future portfolio values relative to a graphical indication of the retirement income goal.

Claims

1. A method comprising:

receiving information regarding a retirement income goal of an individual;

receiving a plurality of input values for corresponding decision variables, including an indication regarding a target retirement age for the individual, an indication regarding anticipated monetary contributions directed toward the retirement income goal and an indication regarding the individual'"'"'s risk tolerance, upon which a probability distribution is dependent, the probability distribution generated based on simulated market return scenarios and representing a set of possible future portfolio values based on the plurality of inputs; and

providing feedback regarding the likelihood of the individual achieving the retirement income goal in view of the plurality of input values by graphically depicting one or more of the set of possible future portfolio values relative to a graphical indication of the retirement income goal.

2. The method of claim 1, wherein a first possible future portfolio value of the one or more of the set of possible future portfolio values represents an asset level that is achieved in approximately 50% or more of the simulated market return scenarios.

3. The method of claim 2, wherein a second possible future portfolio value of the one or more of the set of possible future portfolio values represents an asset level that is achieved in a substantially greater number of the simulated market return scenarios than the first possible future portfolio value.

4. The method of claim 3, wherein the second possible future portfolio value represents an asset level that is achieved in approximately 95% or more of the simulated market return scenarios.

5. The method of claim 3, wherein a third possible future portfolio value of the one or more of the set of possible future portfolio values represents an asset level that is achieved in substantially fewer of the simulated market return scenarios than the first possible future portfolio value.

6. The method of claim 4, wherein the third possible future portfolio value represents an asset level that is achieved in approximately 5% or fewer of the simulated market return scenarios.

7. The method of claim 1, further comprising providing a visual indication indicative of a probability of achieving the retirement income goal.

8. The method of claim 7, further comprising determining the probability of achieving the retirement income goal by evaluating the cumulative probability distribution that meets or exceeds the retirement income goal.

9. The method of claim 1, wherein the plurality of input values are received based on the relative positioning of corresponding slider bar graphical input objects.