SYSTEM AND METHOD FOR INCOME MANAGED ACCOUNT

• US 20140180962A1
• Filed: 12/21/2012
• Published: 06/26/2014
• Est. Priority Date: 12/21/2012
• Status: Active Application

• Current Assignee: Edward D. Jones & Company LP (The Jones Financial Cos. LLLP)
• Original Assignee: Edward D. Jones & Company LP (The Jones Financial Cos. LLLP)
• Inventors: Fiala, William Elliott, Mikula, Matthew James
• Application Number:
  US13/724,691
• Publication Number:
  US 20140180962A1
• Time in Patent Office: Days
• US Class Current: 705/36.R
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A system and method for managing a consolidated account which consolidates the cash flows of a plurality of different accounts and outside income, tracks the cash flows, monitors the sustainability of income streams and expense needs, makes projections for further potential cash flows, has the ability to make variable distributions, tracks the current and projected balance in the income managed account and issues alerts when account parameters fail to meet a criteria, and automatically takes corrective action or makes recommendations.

Claims

1. A method of managing a consolidated account, comprising the steps of:

(a) providing a first account of non-cash assets;

(b) providing a second account of non-cash assets, the second account being different than the first account;

(c) using a processor, predicting the account balance of a consolidated account associated with a plurality of accounts, including the first and second account as a function of time and balance amount, including the steps of;

(i) predicting the amount and timing of income to be earned from the assets of the first account to be deposited into the consolidated account;

(ii) predicting the amount and timing of income to be earned from the assets of the second account to be deposited into the consolidated account; and

(iii) predicting the amount and timing of withdrawals from the consolidated account;

(d) comparing the predicted balance of the consolidated account with a predetermined criteria, and if the predicted account balance is less than the predetermined criteria, identifying a list of the plurality of accounts in a priority order in which to liquidate assets to thereby increase the predicted balance of the consolidated account to satisfy the predetermined threshold.

2. The method of claim 1, further comprising the step of:

(e) liquidating assets from the plurality of accounts in the identified priority order and depositing the income derived therefrom in the consolidated account to thereby increase the predicted balance of the consolidated account to satisfy the predetermined threshold.

3. The method of claim 2, wherein the step of liquidating occurs at any time before an actual balance of the consolidated account fails to satisfy the predetermined threshold.

4. The method of claim 1, wherein the predetermined criteria is a minimum account balance.

5. The method of claim 1, wherein the list of accounts is prioritized as a function of at least one of tax consequences, asset allocation or available balance associated with liquidating assets of the plurality of accounts.

6. The method of claim 1, further comprising the step of:

(e) displaying a graphical representation of the consolidated account balance.

7. The method of claim 1, wherein the balance of the consolidated account is predicted for a period of twelve months.

8. The method of claim 1, wherein the timing of the deposits of income from the first and second account is not the same.

9. The method of claim 1 wherein the steps (c)-(d) are performed periodically.

10. The method of claim 9 wherein the steps (c)-(d) are performed monthly.

11. The method of claim 9 wherein the steps are performed when income is deposited in to the consolidated account.

12. The method of claim 1 wherein the step of predicting the amount and timing of income to be earned from the assets of the first account to be deposited into the consolidated account includes income from at least one of Social Security, and annuity or a pension.

13. The method of claim 1, further including the step of:

(e) issuing an alert if the predicted account balance is less than the predetermined criteria identifying when the account balance is predicted to become less than the predetermined criteria.

14. A method of managing a consolidated account, comprising the steps of:

(a) using a processor, predicting the account balance of a consolidated account associated with a plurality of accounts for a predetermined period of time, wherein the plurality of accounts includes a first and second account of non-cash, including the steps of;

(i) predicting the amount and timing of income to be earned from the assets of the first account to be deposited into the consolidated account;

(ii) predicting the amount and timing of income to be earned from the assets of the second account to be deposited into the consolidated account; and

(iii) predicting the amount and timing of withdrawals from the consolidated account;

(b) comparing the predicted balance of the consolidated account with a predetermined criteria, and if the predicted account balance is less than the predetermined criteria, identifying a list of the plurality of accounts in a priority order in which to liquidate assets to thereby increase the predicted balance of the consolidated account to satisfy the predetermined threshold; and

(c) liquidating assets from the plurality of accounts in the identified priority order and depositing the income derived therefrom in the consolidated account to thereby increase the predicted balance of the consolidated account to satisfy the predetermined threshold.

15. The method of claim 14, wherein the step of liquidating occurs at any time before an actual balance of the consolidated account fails to satisfy the predetermined threshold.

16. The method of claim 14, wherein the predetermined criteria is a minimum account balance.

17. A system for managing a consolidated account, comprising:

a memory for storing computer readable code; and

a processor operatively coupled to the memory, the processor configured to;

(a) predict the account balance of a consolidated account associated with a plurality of accounts for a predetermined period of time, wherein the plurality of accounts includes a first and second account of non-cash, including configured to;

(i) predict the amount and timing of income to be earned from the assets of the first account to be deposited into the consolidated account;

(ii) predict the amount and timing of income to be earned from the assets of the second account to be deposited into the consolidated account; and

(iii) predict the amount and timing of withdrawals from the consolidated account;

(b) compare the predicted balance of the consolidated account with a predetermined criteria, and if the predicted account balance is less than the predetermined criteria, identify a list of the plurality of accounts in a priority order in which to liquidate assets to thereby increase the predicted balance of the consolidated account to satisfy the predetermined threshold; and

(c) liquidate assets from the plurality of accounts in the identified priority order and depositing the income derived therefrom in the consolidated account to thereby increase the predicted balance of the consolidated account to satisfy the predetermined threshold.

18. The system of claim 17, wherein the processor is configured to liquidate assets at any time before an actual balance of the consolidated account fails to satisfy the predetermined threshold.

19. The system of claim 17, wherein the predetermined criteria is a minimum account balance.