INCOME PRODUCT SELECTOR

• US 20140304193A1
• Filed: 06/20/2014
• Published: 10/09/2014
• Est. Priority Date: 12/06/2011
• Status: Abandoned Application

• Current Assignee: FMR LLC
• Original Assignee: FMR LLC
• Inventors: Iskoz, Klara B., Devaney, Stephen J., Lyalko, Andrey, Feinschreiber, Steven A., Macdonald, Robert L.
• Application Number:
  US14/310,882
• Publication Number:
  US 20140304193A1
• 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 first income need is determined to meet essential expenses for a user during retirement, and a second income need is determined to meet discretionary expenses for the user during retirement. A default target income mix is calculated to meet the first income need and the second income need. The default target income mix is a set of weights of one or more classes of income generating products. Qualitative investment preferences are quantified for the user. The default target income mix is adjusted using the quantification of the qualitative investment preferences to form an adjusted target income mix including a second set of weights of the one or more classes of income generating products.

Claims

1. A computerized method for selecting income generating products for purchase in a portfolio comprising:

receiving, by a computing device, a target income mix comprising initial purchase amounts allocated for investment in a portfolio of different classes of income generating products, the initial purchase amounts allocated to the respective classes resulting in representative income amounts that cover one or more future income needs;

accessing, by the computing device, predefined product models in a data store, each of the different classes of income generating products being associated with one or more of the predefined product models, each of the predefined product models identifying one or more income generating products available to purchase for that class and a corresponding set of second weights representing a predefined distribution of a purchase amount across the one or more income generating products;

receiving, by the computing device, data representing user investment preferences input by the user through a user interface;

mapping, by the computing device, one of the predefined product models to each class based on the user investment preferences;

calculating, by the computing device, product purchase amounts to purchase the identified income generating products for each class according to the mapped product models and the initial purchase amounts allocated to the respective classes;

calculating, by the computing device, projected income amounts expected from the purchase of the identified income generating products in the product purchase amounts; and

determining, by the computing device, whether the projected income amounts cover the one or more future income needs;

adjusting, by the computing device, the product purchase amounts of the identified income generating products to form adjusted product purchase amounts resulting in the projected income amounts covering the one or more future income needs; and

presenting, by the computing device, a display to the user through the user interface, the display comprising data representing at least the identified income generating products and the product purchase amounts recommended for purchase.

2. The method of claim 1 wherein the income generating products comprises at least one of fixed annuities, variable annuities, and a systematic withdrawal plan.

3. The method of claim 1 further comprising calculating, by the computing device, the initial purchase amounts of the target income mix based on available assets of the user.

4. The method of claim 1 further comprising calculating, by the computing device, the projected income amounts expected from the purchase of the identified income generating products in the product purchase amounts throughout the user'"'"'s retirement horizon at predetermined confidence levels.

5. The method of claim 1 further comprising calculating, by the computing device, the projected income amounts expected from the purchase of the identified income generating products in the product purchase amounts throughout the user'"'"'s retirement horizon at a predetermined return assumption.

6. A computer program product for selecting income generating products for purchase in a portfolio, tangibly embodied in a non-transitory computer-readable storage device, the computer program product including instructions being operable to cause a data processing apparatus to:

receive a target income mix comprising initial purchase amounts allocated for investment in a portfolio of different classes of income generating products, the initial purchase amounts allocated to the respective classes resulting in representative income amounts that cover one or more future income needs;

access predefined product models in a data store, each of the different classes of income generating products being associated with one or more of the predefined product models, each of the predefined product models identifying one or more income generating products available to purchase for that class and a corresponding set of second weights representing a predefined distribution of a purchase amount across the one or more income generating products;

receive data representing user investment preferences input by the user through a user interface;

map one of the predefined product models to each class based on the user investment preferences;

calculate product purchase amounts to purchase the identified income generating products for each class according to the mapped product models and the initial purchase amounts allocated to the respective classes;

calculate projected income amounts expected from the purchase of the identified income generating products in the product purchase amounts; and

determine whether the projected income amounts cover the one or more future income needs;

adjust the product purchase amounts of the identified income generating products to form adjusted product purchase amounts resulting in the projected income amounts covering the one or more future income needs; and

present a display to the user through the user interface, the display comprising data representing at least the identified income generating products and the product purchase amounts recommended for purchase.

7. The computer program product of claim 6 wherein the income generating products comprise at least one of fixed annuities, variable annuities, and a systematic withdrawal plan.

8. The computer program product of claim 6 further including instructions being operable to cause the data processing apparatus to calculate the initial purchase amounts of the target income mix based on available assets of the user.

9. The computer program product of claim 6 further including instructions being operable to cause the data processing apparatus to calculate the projected income amounts expected from the purchase of the identified income generating products in the product purchase amounts throughout the user'"'"'s retirement horizon at predetermined confidence levels.

10. The computer program product of claim 6 further including instructions being operable to cause the data processing apparatus to calculate the projected income amounts expected from the purchase of the identified income generating products in the product purchase amounts throughout the user'"'"'s retirement horizon at a predetermined return assumption.

11. A system for selecting income generating products for purchase in a portfolio comprising a processor and a data store, the processor being configured to:

receive a target income mix comprising initial purchase amounts allocated for investment in a portfolio of different classes of income generating products, the initial purchase amounts allocated to the respective classes resulting in representative income amounts that cover one or more future income needs;

access predefined product models in the data store, each of the different classes of income generating products being associated with one or more of the predefined product models, each of the predefined product models identifying one or more income generating products available to purchase for that class and a corresponding set of second weights representing a predefined distribution of a purchase amount across the one or more income generating products;

receive data representing user investment preferences input by the user through a user interface;

map one of the predefined product models to each class based on the user investment preferences;

calculate product purchase amounts to purchase the identified income generating products for each class according to the mapped product models and the initial purchase amounts allocated to the respective classes;

calculate projected income amounts expected from the purchase of the identified income generating products in the product purchase amounts; and

determine whether the projected income amounts cover the one or more future income needs;

adjust the product purchase amounts of the identified income generating products to form adjusted product purchase amounts resulting in the projected income amounts covering the one or more future income needs; and

present a display to the user through the user interface, the display comprising data representing at least the identified income generating products and the product purchase amounts recommended for purchase.

12. The system of claim 11 wherein the income generating products comprise at least one of fixed annuities, variable annuities, and a systematic withdrawal plan.

13. The system of claim 11 wherein the processor is configured to calculate the initial purchase amounts of the target income mix based on available assets of the user.

14. The system of claim 11 wherein the processor is configured to calculate the projected income amounts expected from the purchase of the identified income generating products in the product purchase amounts throughout the user'"'"'s retirement horizon at predetermined confidence levels.

15. The system of claim 11 wherein the processor is configured to calculate the projected income amounts expected from the purchase of the identified income generating products in the product purchase amounts throughout the user'"'"'s retirement horizon at a predetermined return assumption.