ASSET ALLOCATION BASED SYSTEM FOR INDIVIDUAL INVESTOR PORTFOLIO SELECTION

• US 20140279701A1
• Filed: 03/17/2014
• Published: 09/18/2014
• Est. Priority Date: 03/15/2013
• Status: Abandoned Application

• Current Assignee: Adviceware
• Original Assignee: Adviceware
• Inventors: Farrow, Darrin B.
• Application Number:
  US14/215,735
• Publication Number:
  US 20140279701A1
• 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 for implementing an investment methodology that uses expertly managed funds to automatically manage the investments in a retirement account to take into account various investor information, including the investor age, beneficiary status information, projected retirement plans, among others. The methodology allows use of target-date age-based funds, fixed risk/return funds, or both in a manner that can accommodate not only the investor'"'"'s retirement plans and status, but also the status of the investor'"'"'s beneficiaries. Also, the system can automatically implement dollar cost averaging for moving or otherwise purchasing investments in funds.

Claims

1. A method of performing automated investing in a retirement account using a computer system comprising at least one computer and at least one database, said method comprising the steps of:

providing a plurality of model investment portfolios each directed toward different investment criteria;

collecting investor information about a particular investor using said computer system, wherein said information is stored in at least one of said at least one database;

accepting information into said computer system indicating a retirement investment amount of the particular investor;

determining, using said computer system, particular life-circumstances for a particular investor utilizing the investor information;

automatically choosing, using said computer system, a plurality of chosen model investment portfolios chosen from the plurality of model investment portfolios, wherein said choosing is at least partly based on the particular life-circumstances of the particular investor; and

automatically determining, using said computer system, a different calculated portion of the retirement investment amount of the particular investor to be allocated to each one of the plurality of chosen model investment portfolios, wherein said determining is at least partly based on the particular life-circumstances of the particular investor;

investing, using the computer system, at least a portion of the retirement investment amount of the particular investor into the chosen model investment portfolios according to the respective calculated portions;

detecting, using the computer system, a threshold change in the life circumstances of the particular investor; and

in response to detecting the threshold change, adjusting the portions invested in the chosen model investment portfolios.

2. The method of claim 1, wherein each one of said plurality of model investment portfolios is an age-based investment portfolio that is expertly managed at least partly based on a different respective target retirement date such that the risk/return profile changes over time.

3. The method of claim 2, wherein the portion invested in the each one of the plurality of chosen model investment portfolios is designed to remain invested in the chose model investment portfolios until a target retirement date of the investor.

4. The method of claim 1, wherein each one of said plurality of model investment portfolios is a different risk-based investment portfolio that is expertly managed to maintain a respective stable risk/return profile.

5. The method of claim 4, wherein the portion invested in the each one of the plurality of chosen model investment portfolios, or the chosen model investment portfolios chosen from the plurality of model investment portfolios for receiving portions of the investment, or both, change gradually over time.

6. The method of claim 5, wherein, for said adjusting, an adjusted portion of said investment invested in one model portfolio is to be invested in another model portfolio by the computer system automatically investing equal parts of the adjusted portion in the other model portfolio over a period of time.

7. The method of claim 5, wherein the particular life circumstances of the particular investor include the number of beneficiaries of the investor and information related to the ages of each of the beneficiaries of the investor.

8. The method of claim 1, wherein the particular life circumstances of the particular investor include a status of the investor, a status of a spouse of the investor, and a status of any children of the investor.

9. The method of claim 1, wherein the particular life circumstances of the particular investor include the number of beneficiaries of the investor and their status.

10. The method of claim 1, wherein the particular life circumstances of the particular investor include the number of children of the investor, the expected retirement age of the spouse of the investor, and information related to the ages the children of the investor.

11. The method of claim 1, wherein the particular life circumstances of the particular investor include the expected retirement age of the investor and the expected retirement age of the spouse of the investor.

12. The method of claim 1, wherein, for said adjusting, an adjusted portion of said investment invested in one model portfolio is to be invested in another model portfolio by the computer system automatically investing equal parts of the adjusted portion in the other model portfolio over a period of time.

19. The method of claim 1, wherein, when a portion invested in one model portfolio is to be changed to be invested in another model portfolio, the portion is gradually invested in the other model portfolio by the computer system automatically investing equal parts of the portion in the other model portfolio over a period of time.

13. A method of performing automated investing in a retirement account using a computer system comprising at least one computer and at least one database, said method comprising the steps of:

providing a plurality of model investment portfolios each directed toward different investment criteria;

collecting investor information about a particular investor using a communication device connected to said computer system via a communication network, wherein said information is stored in at least one of said at least one database;

accepting information into said computer system indicating a retirement investment amount of the particular investor from another communication device connected to said computer system;

determining, using said computer system, particular life circumstances for a particular investor utilizing the investor information, wherein said particular life circumstances include a status of the investor, a status of a spouse of the investor and a status of each of any children of the investor;

automatically choosing, using said computer system, at least one chosen model investment portfolio chosen from the plurality of model investment portfolios, wherein said choosing is dependent on all of the status of the investor, the status of the spouse of the investor, and the status of any children of the investor;

automatically determining, using said computer system, a calculated respective portion of the retirement investment amount of the particular investor to be allocated to each one of the at least one chosen model investment portfolio, wherein said determining is at least partly based on all of the status of the investor, the status of the spouse of the investor, and the status of any children of the investor; and

investing, using the computer system, the retirement investment amount of the particular investor into the at least one chosen model investment portfolio according to the respective calculated portion(s).

14. The method of claim 13, wherein each one of said plurality of model investment portfolios is an age-based investment portfolio that is expertly managed at least partly based on a different respective target retirement date such that the risk/return profile changes over time.

15. The method of claim 13, wherein each one of said plurality of model investment portfolios is a different risk-based investment portfolio that is expertly managed to maintain a respective stable risk/return profile.

16. The method of claim 15, wherein the portion invested in the each one of the plurality of chosen model investment portfolios, or the chosen model investment portfolios chosen from the plurality of model investment portfolios for receiving portions of the investment, or both, change gradually over time.

17. The method of claim 16, wherein, when the portion invested in one model portfolio is to be changed to be invested in another model portfolio, the portion is gradually invested in the other model portfolio by the computer system automatically investing equal parts of the portion in the other model portfolio over a period of time.

18. The method of claim 13, wherein the status of the investor includes the expected retirement date of the investor, the status of the spouse includes the expected retirement date of the spouse, and the status of the children include information related to the age of the children.

20. A method of performing automated investing in a retirement account using a computer system comprising at least one computer and at least one database, said method comprising the steps of:

providing a plurality of model investment portfolios each expertly managed to provide a different level of risk and return;

collecting investor information about a particular investor using a communication device connected to said computer system via a communication network, wherein said information is stored in at least one of said at least one database;

accepting information into said computer system indicating a retirement investment amount of the particular investor;

determining, using said computer system, particular life-circumstances for a particular investor utilizing the investor information, wherein said particular life circumstances include a status of the investor;

automatically choosing, using said computer system, a plurality of chosen model investment portfolios chosen from the plurality of model investment portfolios, wherein said choosing is at least partly based on at least the status of the particular investor;

automatically determining, using said computer system, a different calculated portion of the retirement investment amount of the particular investor to be allocated to each one of the plurality of chosen model investment portfolios, wherein said determining is based at least on the status of the particular investor;

investing, using the computer system, the retirement investment amount of the particular investor into the chosen model investment portfolios according to the respective calculated portions;

detecting, using the computer system, a threshold change in the status of the investor;

in response to detecting the threshold change in the status of the investor, automatically re-choosing, using said computer system, a updated plurality of chosen model investment portfolios chosen from the plurality of model investment portfolios, wherein said re-choosing is at least partly based on the change in the status of the investor;

also in response to detecting the threshold change in the status of the investor, automatically determining, using said computer system, a different calculated portion of the retirement investment amount of the particular investor to be allocated to each one of the plurality of further chosen model investment portfolios, wherein said determining is based at least on the change in the status of the particular investor; and

in response to determining the different calculated portion, re-investing, using the computer system, an updated retirement investment amount of the particular investor into the updated chosen model investment portfolios according to the respective different calculated portions, wherein said re-investing includes selling at least a part of the current investment in one or more of the chosen model investment portfolios.

21. The method of claim 20, wherein each one of said plurality of model investment portfolios are expertly managed to provide a different level of risk and return that change over time based on a projected retirement date target associated with a respective one of said plurality of model investment portfolios.

22. The method of claim 20, wherein said change in status of the investor is based on a change in the age of the investor, a change in a beneficiary of the investor, or both.

23. The method of claim 20, wherein each one of said plurality of model investment portfolios are expertly managed to provide a different level of risk and return that are consistent over time based on a target risk/benefit level of the respective one of said plurality of model investment portfolios.

24. A method of performing automated investing in a retirement account using a computer system comprising at least one computer and at least one database, said method comprising the steps of:

providing a plurality of risk-based model investment portfolios each expertly managed to provide a different level of risk and return that is consistent over time;

collecting investor information about a particular investor using a communication device connected to said computer system via a communication network, wherein said information is stored in at least one of said at least one database;

accepting information into said computer system indicating a retirement investment amount of the particular investor from another communication device connected to said computer system;

determining, using said computer system, particular life-circumstances for a particular investor utilizing the investor information, wherein said particular life circumstances include a status of the investor;

automatically choosing, using said computer system, a chosen at least one of the plurality of model investment portfolios, wherein said choosing is at least partly based on the status of the particular investor;

investing, using the computer system, at least a portion of the retirement investment amount of the particular investor into the chosen at least one model investment portfolio;

detecting, using the computer system, a threshold change in the status of the investor;

in response to detecting the threshold change in the status of the investor, automatically re-choosing, using said computer system, an updated chosen at least one of the plurality of model investment portfolios, wherein said re-choosing is at least partly based on the change in the status of the investor; and

in response re-choosing, re-investing, using the computer system, at least a portion of a current retirement investment amount of the particular investor into the updated chosen at least one of the model investment portfolios.

25. The method of claim 24, wherein said change in status of the investor is based on a change in the age of the investor, a change in a beneficiary of the investor, or both.

26. A method of performing automated investing in a retirement account using a computer system comprising at least one computer and at least one database, said method comprising the steps of:

providing a plurality of model investment portfolios each expertly managed to provide a different level of risk and return;

collecting investor information about a particular investor using a communication device connected to said computer system via a communication network, wherein said information is stored in at least one of said at least one database;

accepting information into said computer system indicating a retirement investment amount of the particular investor from another communication device connected to said computer system;

determining, using said computer system, particular life-circumstances for a particular investor utilizing the investor information, wherein said particular life circumstances include both a status of the investor and the status of a beneficiary of the investor;

automatically choosing, using said computer system, a chosen at least one of the plurality of model investment portfolios, wherein said choosing is at least partly based on both the status of the particular investor and the status of the beneficiary of the investor;

investing, using the computer system, at least a portion of the retirement investment amount of the particular investor into the at least one chosen model investment portfolio according to the respective calculated portion(s);

detecting, using the computer system, a change in the status of the investor or a change in the status of the beneficiary of the investor or a change in the status of another beneficiary of the investor;

in response to detecting the change, automatically re-choosing, using said computer system, an updated chosen at least one of the plurality of model investment portfolios, wherein said re-choosing is at least partly based on the detected change; and

in response to re-choosing, re-investing, using the computer system, at least a portion of a current retirement investment amount of the particular investor into the updated chosen at least one of the model investment portfolios.

27. The method of claim 26, wherein each one of said plurality of model investment portfolios are expertly managed to provide a different level of risk and return that change over time based on a projected retirement date target associated with a respective one of said plurality of model investment portfolios.

28. The method of claim 26, wherein said detected change is based on a change in the age of the investor, a change in the age of the beneficiary of the investor, or the addition of the other beneficiary as a new beneficiary of the investor.

29. The method of claim 26, wherein each one of said plurality of model investment portfolios are expertly managed to provide a different level of risk and return that are consistent over time based on a target risk/benefit level of the respective one of said plurality of model investment portfolios.