Computerized system and method for optimizing after-tax proceeds

• US 6,115,697 A
• Filed: 02/19/1999
• Issued: 09/05/2000
• Est. Priority Date: 02/19/1999
• Status: Expired due to Term

• Current Assignee: Barnard J Gottstein Revocable Living Trust, David Gottstein
• Original Assignee: Dynamic Research Group Inc.
• Inventors: Gottstein, David Richard
• Primary Examiner(s): Kemper, Melanie A.
• Application Number:
  US09/253,453
• Time in Patent Office: 564 Days
• Field of Search: 705/35-37, 705/39, 705/31
• US Class Current: 705/36.00R
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/10 Tax strategies
• CPC Class Codes: G06Q 40/123 Tax preparation or submission

Abstract

A computerized system and method process financial securities and instruments to accurately determine and optimize the after-tax proceeds an investor could expect to have at the end of a holding period for each of a set of investment strategies and determines an optimal strategy for maximizing such after-tax proceeds. The computerized system and method receive tax and investment data, user-customized investment expectations, and financial adviser-based investment expectations at a processor; perform tax loss harvesting analysis on the user-customized investment expectations and the financial adviser-based investment expectations over a dynamic taxation time range using a predetermined software program; perform comparative pro-forma tax sensitivity analysis of the tax and investment data and the analyzed investment expectations using the predetermined software program; and determine and output an optimal after-tax investment strategy path from a plurality of investment strategy paths over the dynamic taxation time range using the predetermined software program to optimize the after-tax proceeds from the plurality of investment strategies. The predetermined software program may include a spreadsheet program.

Claims

1. A computerized method for optimizing investments on a lot-by-lot basis, the method comprising the steps of;

receiving tax and investment data corresponding to a plurality of individual lots of investments, and receiving either user-customized investment expectations or financial adviser-based investment expectations at a processor;

performing tax loss harvesting analysis on the user-customized investment expectations or the financial adviser-based investment expectations over a dynamic taxation time range by optimizing the after-tax proceeds of tax loss-based sales on a lot-by-lot basis using a predetermined software program executed by the processor;

performing comparative pro-forma tax sensitivity analysis of the tax and investment data and the analyzed investment expectations on a lot-by-lot basis using the predetermined software program executed by the processor; and

determining and outputting from the processor to an output device a set of financial investment data, including money valuations, representing an optimal after-tax investment strategy path from a plurality of investment strategy paths over the dynamic taxation time range using the predetermined software program to optimize the after-tax proceeds on a lot-by-lot basis from the plurality of investment strategies, wherein the outputted optimal after-tax investment strategy path advises a user of optimal investments to be made.

2. The computerized method of claim 1, wherein the predetermined software program is a spreadsheet program.

3. The computerized method of claim 2, wherein the tax loss harvesting analysis, the comparative pro-forma tax sensitivity analysis, and the determination of the optimal after-tax investment strategy path are performed by a plurality of predetermined formula executed by the spreadsheet program.

4. The computerized method of claim 3, wherein the spreadsheet program is a "LOTUS 1-2-3"-based spreadsheet program available from "LOTUS CORPORATION".

5. The computerized method of claim 1, wherein the step of receiving tax and investment data, user-customized investment expectations, and financial adviser-based investment expectations includes the step of:

receiving the tax and investment data, the user-customized investment expectations, and the financial adviser-based expectations at the processor through an input window displayed on a user interface.

6. The computerized method of claim 5, wherein the software program includes a spreadsheet program for generating a spreadsheet grid including a plurality of cells on the user interface;

and

wherein the tax and investment data, the user-customized investment expectations, and the financial adviser-based expectations are received by the processor through data entry into predetermined cells of the spreadsheet grid.

7. The computerized method of claim 5, wherein the software program includes a graphic user interface (GUI) program for generating at least one data entry window as the input window.

8. The computerized method of claim 5, wherein the software program includes a browser for generating at least one network-based data entry window as the input window.

9. The computerized method of claim 5, wherein the processor includes a computation server for performing the tax loss harvesting analysis, the comparative pro-forma tax sensitivity analysis, and the determination of the optimal after-tax investment strategy path.

10. The computerized method of claim 9, wherein the user interface includes a browser for interfacing with the computation server through the Internet.

11. The computerized method of claim 9, wherein the user interface includes a browser for interfacing with the computation server through an intranet.

12. A system for optimizing after-tax proceeds of a plurality of investments on a lot-by-lot basis the system comprising:

a user interface for receiving tax and investment data corresponding to a plurality of individual lots of investments, and receiving either user-customized investment expectations or financial adviser-based investment expectations; and

a processor executing a predetermined software program for processing the tax and investment data and either the user-customized investment expectations or the financial adviser-based investment expectations;

performing tax loss harvesting analysis on the user-customized investment expectations or the financial adviser-based investment expectations over a dynamic taxation time range by optimizing the after-tax proceeds of tax loss-based sales on a lot-by-lot basis using the predetermined software program;

for performing comparative pro-forma tax sensitivity analysis of the tax and investment data and the analyzed investment expectations on a lot-by-lot basis using the predetermined software program; and

for determining and outputting from the processor to an output device a set of financial investment data, including money valuations, representing an optimal after-tax investment strategy path from a plurality of investment strategy paths over the dynamic taxation time range using the predetermined software program to optimize the after-tax proceeds on a lot-by-lot basis from the plurality of investment strategies, wherein the outputted optimal after-tax investment strategy path advises a user of optimal investments to be made.

13. The system of claim 12, wherein the predetermined software program is a spreadsheet program.

14. The system of claim 13, wherein the tax loss harvesting analysis, the comparative pro-forma tax sensitivity analysis, and the determination of the optimal after-tax investment strategy path are performed by a plurality of predetermined formula executed by the spreadsheet program.

15. The system of claim 14, wherein the spreadsheet program is a "LOTUS 1-2-3"-based spreadsheet program available from "LOTUS CORPORATION".

16. The system of claim 12, wherein the step of receiving tax and investment data, user-customized investment expectations, and financial adviser-based investment expectations includes the step of:

receiving the tax and investment data, the user-customized investment expectations, and the financial adviser-based expectations at the processor through an input window displayed on a user interface.

17. The system of claim 16, wherein the software program includes a spreadsheet program for generating a spreadsheet grid including a plurality of cells on the user interface;

and

wherein the tax and investment data, the user-customized investment expectations, and the financial adviser-based expectations are received by the processor through data entry into predetermined cells of the spreadsheet grid.

18. The system of claim 16, wherein the software program includes a browser for generating at least one network-based data entry window as the input window.

19. The system of claim 16, wherein the processor includes a computation server for performing the tax loss harvesting analysis, the comparative pro-forma tax sensitivity analysis, and the determination of the optimal after-tax investment strategy path.

20. The system of claim 19, wherein the user interface includes a browser for interfacing with the computation server through the Internet.

21. A system for optimizing after-tax proceeds of a plurality of investments on a lot-by-lot basis, the system comprising:

a user interface for receiving tax and investment data corresponding to a plurality of individual lots of investments, and receiving either user-customized investment expectations or financial adviser-based investment expectations; and

a processor executing a software program and including;

means for processing the tax and investment data and either the user-customized investment expectations or the financial adviser-based investment expectations;

performing tax loss harvesting analysis on the user-customized investment expectations or the financial adviser-based investment expectations over a dynamic taxation time range by optimizing the after-tax proceeds of tax loss-based sales on a lot-by-lot basis using a predetermined software program;

means for performing comparative pro-forma tax sensitivity analysis of the tax and investment data and the analyzed investment expectations on a lot-by-lot basis using the predetermined software program; and

means for determining and outputting from the processor to an output device a set of financial investment data, including money valuations, representing an optimal after-tax investment strategy path from a plurality of investment strategy paths over the dynamic taxation time range using the predetermined software program to optimize the after-tax proceeds on a lot-by-lot basis from the plurality of investment strategies, wherein the outputted optimal after-tax investment strategy path advises a user of optimal investments to be made.

22. The system of claim 21, wherein the software program includes a spreadsheet program for executing a plurality of predetermined formula implementing the processing means, the performing means, and the determining means of the processor.

23. A computer-readable medium for use in a computer to optimize after-tax proceeds of investments on a lot-by-lot basis the computer read-able medium storing a predetermined software program implementing a method comprising the steps of receiving tax and investment data corresponding to a plurality of individual lots of investments, and receiving either user-customized investment expectations or financial adviser-based investment expectations at a processor of the computer;

performing tax loss harvesting analysis on the user-customized investment expectations or the financial adviser-based investment expectations over a dynamic taxation time range by optimizing the after-tax proceeds of tax loss-based sales on a lot-by-lot basis using a predetermined software program executed by the processor;

performing comparative pro-forma tax sensitivity analysis of the tax and investment data and the analyzed investment expectations on a lot-by-lot basis using the predetermined software program executed by the processor; and

determining and outputting from the processor to an output device a set of financial investment data, including money valuations, representing an optimal after-tax investment strategy path from a plurality of investment strategy paths over the dynamic taxation time range using the predetermined software program to optimize the after-tax proceeds on a lot-by-lot basis from the plurality of investment strategies, wherein the outputted optimal after-tax investment strategy path advises a user of optimal investments to be made.

24. The computer-readable medium of claim 23, wherein the predetermined software program is a spreadsheet program.

25. The computer-readable medium of claim 24, wherein the tax loss harvesting analysis, the comparative pro-forma tax sensitivity analysis, and the determination of the optimal after-tax investment strategy path are performed by a plurality of predetermined formula executed by the spreadsheet program.

26. The computer-readable medium of claim 25, wherein the spreadsheet program is a "LOTUS 1-2-3"-based spreadsheet program available from "LOTUS CORPORATION".