SYSTEM AND METHOD FOR PROVIDING A FINANCIAL INSTRUMENT WITH A PERIODIC STEP-UP FEATURE

• US 20080189220A1
• Filed: 02/06/2007
• Published: 08/07/2008
• Est. Priority Date: 02/06/2007
• Status: Active Grant

• Current Assignee: GM Global Technology Operations Incorporated (General Motors Company), Prudential Insurance Company of America (Prudential Financial Incorporated)
• Original Assignee: GM Global Technology Operations Incorporated (General Motors Company)
• Inventors: Kane, Daniel O., Runestad, Dain Eric, Dunn, J. Scott, Schwartz, Robert J., Kuperstock, N. David, Herschler, Jacob M., O'Donnell, Robert Francis, Guido, Michael Albert, Grucza, John L., Putterman, Steven Lee, Berardis, Nicholas
• Granted Patent: US 8,396,774 B2
• Time in Patent Office: Days
• US Class Current: 705/36R
• 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

One embodiment of the invention is a method for providing a financial instrument including determining a current account balance for a financial account and on a first periodic basis: determining a specified percentage of the value of the financial account, determine the greater of a particular limit and the highest value of the financial account multiplied by the specified percentage on a second periodic basis, and in response to a determination that the highest value of the financial account multiplied by the specified percentage on the second periodic basis is greater than the particular limit, stepping-up the particular limit to equal the highest value of the financial account multiplied by the specified percentage on the second periodic basis.

Claims

1. A financial instrument management system, comprising:

software stored on a computer-readable medium and operable to;

determine a current account balance for a financial account wherein;

the financial account comprises one or more investments selected by an account holder;

the financial account is associated with a first guarantee that a beneficiary may periodically receive a transfer of an amount of money for the life of a designated party, wherein the transfer may be due to withdrawal from the account or due to benefit payments made to the beneficiary, provided that the amount may vary based upon withdrawals from the account in excess of a particular limit for the periodic transfer;

the financial account is associated with a second guarantee that on a first periodic basis the particular limit will be stepped-up to equal a specified percentage of the highest value of the financial account as determined on a second periodic basis if the specific percentages of the highest value is greater than the particular limit; and

the first periodic basis is longer than the second periodic basis; and

on the first periodic basis;

determine the specified percentage of the value of the financial account;

determine the greater of the particular limit and the highest value of the financial account multiplied by the specified percentage on the second periodic basis; and

in response to a determination that the highest value of the financial account multiplied by the specified percentage on the second periodic basis is greater than the particular limit, step-up the particular limit to equal the highest value of the financial account multiplied by the specified percentage on the second periodic basis.

2. The financial instrument management system of claim 1, wherein the specified percentage is a fixed percentage between four percent and six percent.

3. The financial instrument management system of claim 1, wherein the first periodic basis is yearly and the second periodic basis is quarterly.

4. The financial instrument management system of claim 1, wherein the beneficiary comprises the designated party.

5. The financial instrument management system of claim 1, wherein the specified percentage is variable.

6. The financial instrument management system of claim 5, wherein the specified percentage may vary based on the age of the designated party.

7. A method for providing a financial instrument, the method comprising:

determine a current account balance for a financial account wherein;

the financial account comprises one or more investments selected by an account holder;

the financial account is associated with a first guarantee that a beneficiary may periodically receive a transfer of an amount of money for the life of a designated party, wherein the transfer may be due to withdrawal from the account or due to benefit payments made to the beneficiary, provided that the amount may vary based upon withdrawals from the account in excess of a particular limit for the periodic transfer;

the financial account is associated with a second guarantee that on a first periodic basis the particular limit will be stepped-up to equal a specified percentage of the highest value of the financial account as determined on a second periodic basis if the specified percentage of the highest value is greater than the particular limit; and

the first periodic basis is longer than the second periodic basis; and

on the first periodic basis;

determine the specified percentage of the value of the financial account;

determine the greater of the particular limit and the highest value of the financial account multiplied by the specified percentage on the second periodic basis; and

in response to a determination that the highest value of the financial account multiplied by the specified percentage on the second periodic basis is greater than the particular limit, stepping-up the particular limit to equal the highest value of the financial account multiplied by the specified percentage on the second periodic basis;

wherein at least one of the above actions is performed using a computer.

8. The method of claim 7, wherein the specified percentage is a fixed percentage between four percent and six percent.

9. The method of claim 7, wherein the first periodic basis is yearly and the second periodic basis is quarterly.

10. The method of claim 7, wherein the beneficiary comprises the designated party.

11. The method of claim 7, wherein the specified percentage is variable.

12. The method of claim 11, wherein the specified percentage may vary based on the age of the designated party.

13. A financial instrument management system, comprising:

software stored on a computer-readable medium and operable to;

determining a current account balance for a financial account wherein;

the financial account comprises one or more investments selected by an account holder;

the financial account is associated with a first guarantee that a beneficiary may receive a transfer of an amount of money, wherein the transfer may be due to withdrawal from the account or due to one or more benefit payments made to the beneficiary, the transfer amount being limited by a particular limit;

the financial account is associated with a second guarantee that on a first periodic basis the particular limit will be stepped up to equal a specified percentage of the highest value of the financial account as determined on a second periodic basis if the specified percentage of the highest value is greater than the particular limit; and

the first periodic basis is longer than the second periodic basis; and

on the first periodic basis;

determining the specified percentage of the value of the financial account;

determining the greater of the particular limit and the highest value of the financial account multiplied by the specified percentage on the second periodic basis; and

in response to a determination that the highest value of the financial account multiplied by the specified percentage on the second periodic basis is greater than the particular limit, stepping-up the particular limit to equal the highest value of the financial account multiplied by the specified percentage on the second periodic basis.

14. The financial instrument management system of claim 13, wherein:

the specified percentage is a fixed percentage between ninety-five percent and one hundred percent; and

the transfer comprises a one-time withdrawal or benefit payment.

15. The financial instrument management system of claim 13, wherein the transfer comprises a periodic benefit payment for a term of years.

16. The financial instrument management system of claim 13, wherein the first periodic basis is yearly and the second periodic basis is quarterly.

17. The financial instrument management system of claim 13, wherein the beneficiary comprises the account holder.

18. The financial instrument management system of claim 13, wherein the specified percentage may vary based on the age of the designated party.

19. A method for providing a financial instrument, the method comprising:

determining a current account balance for a financial account wherein;

the financial account comprises one or more investments selected by an account holder;

the financial account is associated with a first guarantee that a beneficiary may receive a transfer of an amount of money, wherein the transfer may be due to withdrawal from the account or due to one or more benefit payments made to the beneficiary, the transfer amount being limited by a particular limit;

the financial account is associated with a second guarantee that on a first periodic basis the particular limit will be stepped-up to equal a specified percentage of the highest value of the financial account as determined on a second periodic basis if the specified percentage of the highest value is greater than the particular limit; and

the first periodic basis is longer than the second periodic basis; and

on the first periodic basis;

determining the specified percentage of the value of the financial account;

determining the greater of the particular limit and the highest value of the financial account multiplied by the specified percentage on the second periodic basis; and

in response to a determination that the highest value of the financial account multiplied by the specified percentage on the second periodic basis is greater than the particular limit, stepping-up the particular limit to equal the highest value of the financial account multiplied by the specified percentage on the second periodic basis;

wherein at least one of the above actions is performed using a computer.

20. The method of claim 19, wherein:

the specified percentage is a fixed percentage between ninety-five percent and one hundred percent; and

the transfer comprises a one-time withdrawal or benefit payment.

21. The method of claim 19, wherein the transfer comprises a periodic benefit payment for a term of years.

22. The method of claim 19, wherein the first periodic basis is yearly and the second periodic basis is quarterly.

23. The method of claim 19, wherein the beneficiary comprises the account holder.

24. The method of claim 19, wherein the specified percentage may vary based on the age of the designated party.