SYSTEM FOR PERFORMING A STRESS TEST ON A RETIREMENT PLAN

• US 20160358258A1
• Filed: 06/02/2015
• Published: 12/08/2016
• Est. Priority Date: 06/02/2015
• Status: Abandoned Application

• Current Assignee: Bank of America Corp.
• Original Assignee: Bank of America Corp.
• Inventors: Dintenfass, Katherine, Hanson, Carrie Anne, Nicholson, Daralyn Marie, Wadley, Cameron Darnell
• Application Number:
  US14/728,289
• Publication Number:
  US 20160358258A1
• Time in Patent Office: Days
• US Class Current: 1/1
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

Embodiments of the invention are directed to systems, methods, and computer program products for performing a stress test on a retirement plan. The system is configured to calculate a retirement score for a retirement plan of a user based on one or more parameters; determine one or more life events likely to occur for the user; perform a stress test on the retirement plan of the user to determine whether the retirement plan is capable of withstanding the one or more life events; provide recommendations to the user if the retirement plan of the user is not capable of withstanding the one or more life events.

Claims

1. A system for performing a stress test on a retirement plan, the system comprising:

one or more memory devices; and

one or more processing devices operatively coupled to the one or more memory devices, wherein the one or more processing devices are configured to execute computer-readable program code to;

receive one or more parameters associated with financial institution accounts of the user from a distributed network of servers, wherein the one or more parameters comprises at least asset values, liability values, and estimated rates of return associated with assets that provide returns;

determine a user profile associated with the user, the user profile comprising an age of the user;

determine financial behavior of the user, wherein the financial behavior comprises at least one of a spending behavior, investment behavior, and savings behavior;

calculate a retirement score for a retirement plan of a user based on the one or more parameters, wherein the one or more parameters comprise at least asset values, liability values, the user profile, the estimated rates of return associated with assets that provide returns, and a financial behavior of the user, wherein the retirement score indicates the user'"'"'s preparedness for retirement at a future predetermined date, wherein the future predetermined date is selected by the user;

determine one or more life events likely to occur for the user, wherein the one or more life events comprises a life event score;

perform a stress test on the retirement plan of the user based on at least the one or more life events, wherein performing a stress comprises;

calculating an updated retirement score based on at least the one or more life event scores associated with the one or more life events likely to occur for the user;

compare the updated retirement score to a predetermined threshold associated with the retirement score; and

determine whether the retirement plan of the user is capable of withstanding the one or more life events based on at least the comparison; and

provide one or more recommendations to the user based on at least determining that the retirement plan of the user is not capable of withstanding the one or more life events.

2. The system of claim 1, wherein the module is configured to cause the one or more processing devices to determine the one or more life events likely to occur for the user based on at least the user profile and one or more life events that have occurred to peer users with peer user profiles substantially similar to the user profile.

3. The system of claim 1, wherein the module is configured to cause the one or more processing devices to:

determine one or more weights associated with the likelihood of the one or more life events determined to occur for the user; and

calculate the updated retirement score based on at least weighting the one or more life event scores likely to occur for the user.

4. The system of claim 3, wherein the module is configured to cause the one or more processing devices to:

initiate the stress test on the retirement plan based on a predetermined threshold associated with the one or more weights, wherein the stress test is initiated when a value of at least one of the one or more weights is greater than the predetermined threshold.

5. The system of claim 3, wherein the module is configured to cause the one or more processing devices to:

vary a value of the one or more weights associated with the likelihood of the one or more life events determined to occur for the user, wherein the value of the one or more weights is varied based on at least the user'"'"'s profile.

6. The system of claim 1, wherein the module is configured to cause the one or more processing devices to:

perform the stress test on the retirement plan of the user at one or more time intervals associated with the one or more life events, wherein the one or more time intervals are based on at least the user'"'"'s age.

7. The system of claim 1, wherein the module is configured to cause the one or more processing devices to:

enable the user to customize the one or more life events determined likely to occur for the user.

8. A computer program product for performing a stress test on a retirement plan, the computer program product comprising a non-transitory computer-readable medium comprising code causing a first apparatus to:

receive one or more parameters associated with financial institution accounts of the user from a distributed network of servers, wherein the one or more parameters comprises at least asset values, liability values, and estimated rates of return associated with assets that provide returns;

determine a user profile associated with the user, the user profile comprising an age of the user;

determine financial behavior of the user, wherein the financial behavior comprises at least one of a spending behavior, investment behavior, and savings behavior;

calculate a retirement score for a retirement plan of a user based on the one or more parameters, wherein the one or more parameters comprise at least asset values, liability values, the user profile, the estimated rates of return associated with assets that provide returns, and a financial behavior of the user, wherein the retirement score indicates the user'"'"'s preparedness for retirement at a future predetermined date, wherein the future predetermined date is selected by the user;

determine one or more life events likely to occur for the user, wherein the one or more life events comprises a life event score;

perform a stress test on the retirement plan of the user based on at least the one or more life events, wherein performing a stress comprises;

calculating an updated retirement score based on at least the one or more life event scores associated with the one or more life events likely to occur for the user;

compare the updated retirement score to a predetermined threshold associated with the retirement score; and

determine whether the retirement plan of the user is capable of withstanding the one or more life events based on at least the comparison; and

provide one or more recommendations to the user based on at least determining that the retirement plan of the user is not capable of withstanding the one or more life events.

9. The computer program product of claim 8, wherein the first apparatus is further configured to cause a processor to determine the one or more life events likely to occur for the user based on at least the user profile and one or more life events that have occurred to peer users with peer user profiles substantially similar to the user profile.

10. The computer program product of claim 8, wherein the first apparatus is further configured to cause a processor to:

determine one or more weights associated with the likelihood of the one or more life events determined to occur for the user; and

calculate the updated retirement score based on at least weighting the one or more life event scores likely to occur for the user.

11. The computer program product of claim 10, wherein the first apparatus is further configured to cause a processor to:

initiate the stress test on the retirement plan based on a predetermined threshold associated with the one or more weights, wherein the stress test is initiated when a value of at least one of the one or more weights is greater than the predetermined threshold.

12. The computer program product of claim 10, wherein the first apparatus is further configured to cause a processor to:

vary a value of the one or more weights associated with the likelihood of the one or more life events determined to occur for the user, wherein the value of the one or more weights is varied based on at least the user'"'"'s profile.

13. The computer program product of claim 8, wherein the first apparatus is further configured to cause a processor to:

perform the stress test on the retirement plan of the user at one or more time intervals associated with the one or more life events, wherein the one or more time intervals are based on at least the user'"'"'s age.

14. The computer program product of claim 8, wherein the first apparatus is further configured to cause a processor to:

enable the user to customize the one or more life events determined likely to occur for the user.

15. A computer implemented method for performing a stress test on a retirement plan, the method comprising:

receiving, using a computing device processor, one or more parameters associated with financial institution accounts of the user from a distributed network of servers, wherein the one or more parameters comprises at least asset values, liability values, and estimated rates of return associated with assets that provide returns;

determining, using a computing device processor, a user profile associated with the user, the user profile comprising an age of the user;

determining, using a computing device processor, financial behavior of the user, wherein the financial behavior comprises at least one of a spending behavior, investment behavior, and savings behavior;

calculating, using a computing device processor, a retirement score for a retirement plan of a user based on the one or more parameters, wherein the one or more parameters comprise at least asset values, liability values, the user profile, the estimated rates of return associated with assets that provide returns, and a financial behavior of the user, wherein the retirement score indicates the user'"'"'s preparedness for retirement at a future predetermined date, wherein the future predetermined date is selected by the user;

determining, using a computing device processor, one or more life events likely to occur for the user, wherein the one or more life events comprises a life event score;

performing, using a computing device processor, a stress test on the retirement plan of the user based on at least the one or more life events, wherein performing a stress comprises;

calculating an updated retirement score based on at least the one or more life event scores associated with the one or more life events likely to occur for the user;

compare the updated retirement score to a predetermined threshold associated with the retirement score; and

determine whether the retirement plan of the user is capable of withstanding the one or more life events based on at least the comparison; and

providing, using a computing device processor, one or more recommendations to the user based on at least determining that the retirement plan of the user is not capable of withstanding the one or more life events.

16. The computer implemented method of claim 15, wherein the method further comprises determining the one or more life events likely to occur for the user based on at least the user profile and one or more life events that have occurred to peer users with peer user profiles substantially similar to the user profile.

17. The computer implemented method of claim 15, wherein the method further comprises:

determining one or more weights associated with the likelihood of the one or more life events determined to occur for the user; and

calculating the updated retirement score based on at least weighting the one or more life event scores likely to occur for the user.

18. The computer implemented method of claim 17, wherein the method further comprises:

initiating the stress test on the retirement plan based on a predetermined threshold associated with the one or more weights, wherein the stress test is initiated when a value of at least one of the one or more weights is greater than the predetermined threshold.

19. The computer implemented method of claim 17, wherein the method further comprises:

varying a value of the one or more weights associated with the likelihood of the one or more life events determined to occur for the user, wherein the value of the one or more weights is varied based on at least the user'"'"'s profile.

20. The computer implemented method of claim 15, wherein the method further comprises:

performing the stress test on the retirement plan of the user at one or more time intervals associated with the one or more life events, wherein the one or more time intervals are based on at least the user'"'"'s age.