METHOD AND APPARATUS FOR CALCULATING AN OPTIMAL RETIREMENT PLAN BASED ON INCOME NEEDS, INCOME SOURCES AND FEDERAL INCOME TAX IMPACTS

• US 20160063632A1
• Filed: 08/31/2015
• Published: 03/03/2016
• Est. Priority Date: 08/29/2014
• Status: Abandoned Application

• Current Assignee: Doublet Capital Management, LLC
• Original Assignee: Doublet Capital Management, LLC
• Inventors: Folk, Mark Alan, Pick, Joshua Allan
• Application Number:
  US14/840,429
• Publication Number:
  US 20160063632A1
• Time in Patent Office: Days
• US Class Current: 1/1
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

Methods and apparatuses for calculating an optimal retirement plan based on income needs, incomes sources and federal income tax impacts for individuals and married couples is disclosed. Financial information of the user(s) is used to create a user profile(s) which comprises retirement income requirements, available income sources and investment risk tolerance of the user. The user profile is used to calculate a suggested strategy which balances the income requirements of the user impacted by taxes to the available income sources and accounting for investment risks of the user and a set of all possible life and death variables. A life plan is created using the suggested strategy, the set of all possible life and death variables and the user profile, and presented as output to show the optimal retirement plan.

Claims

1. A non-transitory processor-readable medium storing code representing instructions to be executed by a processor, said instructions which when executed cause the processor to:

receive as input financial information which comprises desired retirement age, retirement income requirements, available income sources and investment risk tolerance of a user;

create a user profile from the financial information received;

calculate, using the user profile, a suggested strategy which balances the income requirement impacted by taxes to the available income sources and accounting for the investment risk tolerance of the user;

calculate, using the user profile, a set of all possible life and death variables;

create a life plan using the set of all possible life and death variables and user profile; and

present as output on a display the life plan which comprises an optimal retirement plan based on inputted desired retirement age, income requirements, inputted available incomes sources, and income tax impacts to the user.

2. An optimal retirement plan calculating apparatus for a user comprising:

a display,

a processor, and

memory storing code which when executed by the processor causes the processor to;

receive as input financial information which comprises desired retirement age, retirement income requirements, available income sources and investment risk tolerance of a user;

create a user profile from the financial information received;

calculate, using the user profile, a suggested strategy which balances the income requirement impacted by taxes to the available income sources and accounting for the investment risk tolerance of the user;

calculate, using the user profile, a set of all possible life and death variables;

create a life plan using the set of all possible life and death variables and user profile; and

present as output on the display the life plan which comprises an optimal retirement plan based on inputted desired retirement age, income requirements, inputted available incomes sources, and income tax impacts to the user.

3. A retirement planning system for a user comprising:

a host device with a processor and memory storing code which when executed causes the processor to implement an input module, a profile agent module, a grid analyst module, a multi-variables calculation module, a full-life planner module and a tax builder module, wherein the host device;

receives via the input module one or more input values related to a desired retirement age, income needs and incomes sources of the user;

creates automatically via the profile agent module a user profile based on the one or more input values received;

selects automatically via the grid analyst module applicable life and death variables from a life and death variables database based on the user profile created;

determines automatically via the multi-variables calculation module result data based on the user profile created and the application life and death variables selected, the result data comprises values for a current total retirement income and a maximized total retirement income, and information regarding benefit election option and tax filing status selected which resulted in the maximized total retirement income determined by the multi-variable calculation module;

determines automatically via the full life planner module which runs a tax loop process, a life plan which comprises a breakdown of yearly Social Security income if filed at the inputted desired retirement age versus according to an age, type of SS benefit election, and tax filing status as provided in the resulting data, wherein in the tax loop process, the full life planner module automatically requests the tax builder module perform and provide tax calculations and/or generate and provide completed tax forms based in the resulting data outputted from the multi-variables calculation module as well as the user profile; and

provides the life plan as output from the full life planner module and the tax builder module that results from the tax loop process.

4. The retirement planning system of claim 3, wherein the life plan is outputted to a life build database.

5. The retirement planning system of claim 3, wherein the life plan is outputted to a display and/or a printer.

6. The retirement planning system of claim 3, wherein the life plan comprises information providing a Maximized Social Security Strategy, a Retirement Income Flow, an Investment Option report, complete tax forms for current year, and/or completed forms for making a SS benefit election which maximizes the total net retirement income of the user.

7. The retirement planning system of claim 3, wherein the one or more input values is inputted by the user on the host device or based on information received from an information database via a network.

8. The retirement planning system of claim 3, wherein the benefit election option comprises information regarding at what age the user should elect to receive social security benefits and what social security election option should be made by the user.

9. The retirement planning system of claim 3, wherein the resulting data is determined by the multi-variable calculation module finding from all available election strategies from a set of election strategies for each available age combination associated with that election strategy for an individual or married couple, each election strategy'"'"'s effects of income tax in retirement and investment values adjusted for an inputted rate of return in retirement, a result which maximizes retirement income of the user.

10. The retirement planning system of claim 3, wherein the tax builder module is operatively coupled to an information database to request and receive needed tax tables and/or tax forms based on the resulting data and the user profile.

11. The retirement planning system of claim 3, wherein the tax builder module provides as output to the full life planner module the yearly values for Social Security income and/or income taxes that are used in the Maximized Social Security Strategy, and the Retirement Income Flow.

12. The retirement planning system of claim 3, wherein the tax builder module provides as output to the full life planner module a tax data file comprising completed tax forms for a current year based on the resulting data and user profile(s) and/or the completed forms to make the SS election option which maximums total retirement income.

13. The retirement planning system of claim 3, wherein, if the resulting data indicates a retirement income shortfall, the full life planner module provides an investment options report in which to make up the income shortfall.

14. The retirement planning system of claim 13, wherein the investment options report includes recommendations regarding types of investment options, their associated risk, historical rate of returns, and amount need to make the computed retirement income shortfall in present dollars.

15. The retirement planning system of claim 14, wherein the type of investment options comprises one or more of rental property, mutual funds, annuities or other suitable investment assets, sale of assets, and reverse mortgages.

16. A computer-implemented retirement planning method that creates a life plan which shows and explains an optimal retirement plan based on inputted desired retirement age, inputted income needs, inputted incomes sources, and income tax impacts to a user, said method comprising:

executing via a processor code which implements on a host device an input module, a profile agent module, a grid analyst module, a multi-variables calculation module, a full-life planner module and a tax builder module;

receiving via the input module one or more input values related to the desired retirement age, income needs and the incomes sources of the user;

creating automatically via the profile agent module a user profile based on the one or more input values received;

selecting automatically via the grid analyst module applicable life and death variables from a life and death variables database based on the user profile created;

determining automatically via the multi-variables calculation module result data based on the user profile created and the application life and death variables selected, the result data providing values for a current total retirement income and a maximized total retirement income, and information regarding benefit election option and tax filing status selected which resulted in the maximized total retirement income determined by the multi-variable calculation module;

determining automatically via the full life planner module running a tax loop process, a life plan which comprises a breakdown of yearly Social Security income if filed at the inputted desired retirement age(s) versus according to the age(s), type of SS benefit election, and tax filing status as provided in the resulting data, wherein during the tax loop process, the full life planner module automatically requests the tax builder module perform and provide tax calculations and/or generate and provide completed tax forms based in the resulting data outputted from the multi-variables calculation module as well as the user profile; and

providing the life plan as output from the full life planner module and the tax builder module resulting from the tax loop process.

17. The computer-implemented retirement planning method of claim 16, wherein providing the life plan as output from the full life planner module and the tax builder module resulting from the tax loop process is outputting to one or more of a life build database, a display and a printer.

18. The computer-implemented retirement planning method of claim 16, wherein the life plan comprises information providing a Maximized Social Security Strategy, a Retirement Income Flow, an Investment Option report, complete tax forms for current year, and/or completed forms for making a SS benefit election which maximizes the total net retirement income of the user.

19. The computer-implemented retirement planning method of claim 16, wherein the one or more input values is inputted by the user on a host device or based on information received from an information database via a network.

20. The computer-implemented retirement planning method of claim 16, wherein the benefit election option comprises information regarding at what age the user should elect to receive social security benefits and what social security election option should be made by the user.

21. The computer-implemented retirement planning method of claim 16, wherein the resulting data is determined by the multi-variable calculation module finding from all available election strategies from a set of election strategies for each available age combination associated with that election strategy for an individual or married couple, each election strategy'"'"'s effects of income tax in retirement and investment values adjusted for an inputted rate of return in retirement, a result which maximizes retirement income of the user.

22. The computer-implemented retirement planning method of claim 16, wherein the tax builder module is operatively coupled to an information database to request and receive needed tax tables and/or tax forms based on the resulting data and the user profile.

23. The computer-implemented retirement planning method of claim 16, wherein the tax builder module is providing as output to the full life planner module the yearly values for Social Security income and/or income taxes that are used in the Maximized Social Security Strategy, and the Retirement Income Flow.

24. The computer-implemented retirement planning method of claim 16, wherein the tax builder module is providing as output to the full life planner module a tax data file comprising completed tax forms for a current year based on the resulting data and user profile(s) and/or the completed forms to make the SS election option which maximums total retirement income.

25. The computer-implemented retirement planning method of claim 16, wherein, if the resulting data indicates a retirement income shortfall, the method further comprises the full life planner module providing an investment options report in which to make up the income shortfall.

26. The computer-implemented retirement planning method of claim 25, wherein the investment options report includes recommendations regarding types of investment options, their associated risk, historical rate of returns, and amount need to make the computed retirement income shortfall in present dollars.

27. The computer-implemented retirement planning method of claim 26, wherein the type of investment options comprises one or more of rental property, mutual funds, annuities or other suitable investment assets, sale of assets, and reverse mortgages.