Computer-implemented program for financial planning and advice system

• US 6,430,542 B1
• Filed: 08/26/1998
• Issued: 08/06/2002
• Est. Priority Date: 08/26/1998
• Status: Expired due to Term

• Current Assignee: Ameriprise Financial, Inc.
• Original Assignee: American Express Company
• Inventors: Moran, William J.
• Primary Examiner(s): NGUYEN, CUONG H
• Application Number:
  US09/141,013
• Time in Patent Office: 1,441 Days
• Field of Search: G06/F 1.760, 705/67, 705/35, 705/36, 706/62, 707/503, 713/172, 713/180, 235/379-380, 345/338
• US Class Current: 705/36.00R
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

The present financial planning and advice system allows an advisor to provide proactive, efficient service to clients. An advisor can analyze a client'"'"'s relationship(s) with his/her family, business and pension to provide overall financial planning and security. The financial planning and advice system includes numerous innovative, coordinated features including, inter alia, demographic and financial data files, a Virtual Executor, a financial Simulator, an Earmarker, a Strategizer, and a Proposal Constructor. For example, Virtual Executor preferably simulates the steps required to settle a person'"'"'s estate from the moment of death until all property, net of costs and taxes, is suitably distributed to survivors (i.e., surviving family members, etc.). Virtual Executor suitably determines the legal survivors of the decedent, and suitably transfers to financial Simulator the net amounts passing to the survivors. As another example, Financial Simulator not only simulates the results of Virtual Executor disbursement, but it also simulates the combination of the disbursements and the resources already belonging to the survivors before the death occurred.

Claims

1. A financial planning system comprising:

a computer processor communicating with a data entry device, wherein said data entry device is configured to input economic group data;

a goals and assumptions identifier communicating with said processor, wherein said goals and assumptions identifier is configured to input and associate at least one goal and at least one assumption with said economic group data; and

a simulator communicating with said processor;

wherein said simulator is configured to simulate the passage of time, to analyze an economic group'"'"'s available financial resources with respect to fulfilling said at least one goal based upon said at least one assumption, and to process at least one financial position for an economic group based upon an analysis of said available financial resources and in response to at least one hypothetical event or transaction;

wherein said simulator obtains demographic data and financial data pertaining to said economic group; and

wherein said simulator analyzes and solves said at least one goal in an efficient order, accounting for any dependency of future goals upon prior goals, based upon said at least one assumption, said demographic data, and said financial data.

2. The financial planning system of claim 1 wherein said economic group comprises at least one member, and said at least one member is selected from the group consisting of a person, a legal entity, and a charity.

3. The financial planning system of claim 2 wherein said economic group data comprises demographic data pertaining to said at least one member.

4. The financial planning system of claim 3 wherein said economic group comprises a plurality of members and said demographic data includes relationship data between any two of said plurality of members.

5. The financial planning system of claim 4 wherein said economic group data further comprises financial data, including assets, liabilities, insurance policies, income, and expenses associated with said economic group.

6. The financial planning system of claim 5 wherein said economic group data, said demographic data, and said financial data are relationally linked data objects, and wherein a modification in any one data object is broadcast to each related data object so that said related data objects can be updated to reflect said modification.

7. The financial planning system of claim 1 wherein said simulator comprises at least one event handler configured to process transactions and financial events associated with a hypothetical occurrence of a particular event.

8. The financial planning system of claim 7 wherein economic group data, demographic data, and financial data are relationally linked data objects, wherein a modification in any one data object is broadcast to each related data object so that said related data objects can be updated to reflect said modification, and wherein said at least one event handler accesses said relationally linked data objects, processes said transactions and financial events associated with said particular event, and permits said simulator to simulate said economic group'"'"'s financial position in response to said particular event.

9. The financial planning system of claim 7 wherein said at least one event handler is a virtual executor, wherein said virtual executor is configured to simulate modifications to an economic group'"'"'s financial position resulting from a hypothetical death of a member of said economic group, and wherein said at least one goal includes probating an estate after said hypothetical death of said member.

10. The financial planning system of claim 9 wherein economic group data, demographic data, and financial data are relationally linked data objects, wherein a modification in any one data object is broadcast to each related data object so that said related data objects can be updated to reflect said modification, and wherein said virtual executor accesses said relationally linked data objects, processes said transactions and financial events associated with said death, and permits said simulator to simulate said economic group'"'"'s financial position in response to said death.

11. The financial planning system of claim 1 wherein said simulator further comprises a time value calculator configured to compute a present-day value for a simulated future financial position.

12. The financial planning system of claim 11 wherein said time value calculator further is configured to identify a potential future financial shortage and to calculate a present-day savings amount which would eliminate said potential future financial shortage.

13. The financial planning system of claim 1 wherein said simulator is configured to avoid simulating mutually exclusive hypothetical events or transactions.

14. The financial planning system of claim 1 further comprising an earmarker communicating with said processor, wherein said earmarker is configured to identify specific economic group data with specific goals.

15. The financial planning system of claim 14 wherein said specific economic group data comprise financial data, including presently-owned assets, savings, and excess income associated with said economic group.

16. The financial planning system of claim 14 wherein said earmarker device further is configured to avoid earmarking resources already earmarked for other current or future needs.

17. The financial planning system of claim 1 further comprising a strategizer communicating with said processor, wherein said strategizer is configured to compare an economic group'"'"'s current financial position with at least one alternative financial position.

18. The financial planning system of claim 17 wherein said strategizer is configured to create said at least one alternative financial position by applying at least one strategy to a copy of said economic group'"'"'s current financial position and by requesting that said simulator process transactions using said at least one strategy and said copy of said economic group'"'"'s current financial position to demonstrate an impact of applying said at least one strategy to an economic group'"'"'s financial position.

19. The financial planning system of claim 18 wherein said at least one strategy includes modifying at least one data object selected from the group consisting of said economic group data, said at least one goal, and said at least one assumption.

20. The financial planning system of claim 19 wherein said economic group data comprises at least one data object selected from the group consisting of demographic data and financial data.

21. The financial planning system of claim 1 further comprising means for providing an output of an economic group'"'"'s financial plan based upon an analysis of said economic group'"'"'s financial position.

22. The financial planning system of claim 21 wherein said output of said economic group'"'"'s financial plan is a document that provides a current financial plan and at least one alternative financial plan, wherein said current financial plan is based upon an analysis of said economic group'"'"'s financial position using current goals and assumptions, and wherein said at least one alternative financial plan is based upon an analysis of said economic group'"'"'s financial position using modified goals and assumptions.

23. The financial planning system of claim 1 further comprising a persistence system and a relational database management system, wherein said persistence system is configured to retrieve data objects from, load, and then write data objects to said relational database management system.

24. The financial planning system of claim 23 wherein said persistence system is configured to place in memory those data objects which are needed by said financial planning system and further configured to remove from memory those data objects which are not needed by said financial planning system.

25. The financial planning system of claim 23 wherein said persistence system is configured to write data objects to said relational database management system only when said data objects have been modified.

26. The financial planning system of claim 23 wherein said persistence system is configured to maintain an object lookup table so that a data object exists in said relational database management system only once.

27. A financial planning system comprising:

a computer processor communicating with a data entry device, wherein said data entry device is configured to input economic group data;

a goals and assumptions identifier communicating with said processor, wherein said goals and assumptions identifier is configured to input and associate at least one goal and at least one assumption with said economic group data; and

a simulator communicating with said processor, wherein said simulator is configured to simulate the passage of time, to analyze an economic group'"'"'s available financial resources with respect to fulfilling said at least one goal based upon said at least one assumption, and to process at least one financial position for an economic group based upon an analysis of said available financial resources and in response to at least one hypothetical event or transaction, and wherein said simulator comprises a virtual executor configured to simulate modifications to an economic group'"'"'s financial position resulting from a hypothetical death of a member of said economic group, and wherein said at least one goal includes probating an estate after said hypothetical death of said member.

28. The financial planning system of claim 27 wherein said economic group data comprises demographic data pertaining to said at least one member.

29. The financial planning system of claim 28 wherein said economic group comprises a plurality of members and said demographic data includes relationship data between any two of said plurality of members.

30. The financial planning system of claim 29 wherein said economic group data further comprises financial data, including assets, liabilities, insurance policies, income, and expenses associated with said economic group.

31. The financial planning system of claim 30 wherein economic group data, demographic data, and financial data are relationally linked data objects, wherein a modification in any one data object is broadcast to each related data object so that said related data objects can be updated to reflect said modification, and wherein said virtual executor accesses said relationally linked data objects, processes said transactions and financial events associated with said death, and permits said simulator to simulate said economic group'"'"'s financial position in response to said death.

32. The financial planning system of claim 27 wherein said simulator further comprises a time value calculator configured to compute a present-day value for a simulated future financial position.

33. The financial planning system of claim 32 wherein said time value calculator further is configured to identify a potential future financial shortage and to calculate a present-day savings amount which would eliminate said potential future financial shortage.

35. The financial planning system of claim 27 further comprising an earmarker communicating with said processor, wherein said earmarker is configured to identify specific economic group data with specific goals.

36. The financial planning system of claim 35 wherein said specific economic group data further comprise financial data, including presently-owned assets, savings, and excess income associated with said economic group.

37. The financial planning system of claim 35 wherein said earmarker device further is configured to avoid earmarking resources already earmarked for other current or future needs.

42. The financial planning system of claim 27 further comprising means for providing an output of an economic group'"'"'s financial plan based upon an analysis of said economic group'"'"'s financial position.

43. The financial planning system of claim 42 wherein said output of said economic group'"'"'s financial plan is a document that provides a current financial plan and at least one alternative financial plan, wherein said current financial plan is based upon an analysis of said economic group'"'"'s financial position using current goals and assumptions, and wherein said at least one alternative financial plan is based upon an analysis of said economic group'"'"'s financial position using modified goals and assumptions.

44. The financial planning system of claim 27 further comprising a persistence system and a relational database management system, wherein said persistence system is configured to retrieve data objects from, load, and then write data objects to said relational database management system.

45. The financial planning system of claim 44 wherein said persistence system is configured to place in memory those data objects which are needed by said financial planning system and further configured to remove from memory those data objects which are not needed by said financial planning system.

46. The financial planning system of claim 44 wherein said persistence system is configured to write data objects to said relational database management system only when said data objects have been modified.

47. The financial planning system of claim 44 wherein said persistence system is configured to maintain an object lookup table so that a data object exists in said relational database management system only once.

34. The financial planning system of 27 claim wherein said simulator is configured to avoid simulating mutually exclusive hypothetical events or transactions.

38. The financial planning system of 27 claim further comprising a strategizer communicating with said processor, wherein said strategizer is configured to compare an economic group'"'"'s current financial position with at least one alternative financial position.

39. The financial planning system of claim 38 wherein said strategizer is configured to create said at least one alternative financial position by applying at least one strategy to a copy of said economic group'"'"'s current financial position and by requesting that said simulator process transactions using said at least one strategy and said copy of said economic group'"'"'s current financial position to demonstrate an impact of applying said at least one strategy to an economic group'"'"'s financial position.

40. The financial planning system of claim 39 wherein said at least one strategy includes modifying at least one data object selected from the group consisting of said economic group data, said at least one goal, and said at least one assumption.

41. The financial planning system of claim 40 wherein said economic group data comprises at least one data object selected from the group consisting of demographic data and financial data.

48. A method for simulating an economic group'"'"'s financial position comprising the steps of:

providing economic group data, including demographic data and financial data, for said economic group;

providing at least one goal having at least one assumption needed to achieve said goal;

associating said economic group data for said economic group with said at least one goal and said at least one assumption;

analyzing said economic group'"'"'s available financial resources with respect to fulfilling said at least one goal based upon said at least one assumption;

solving said at least one goal in an efficient order, accounting for any dependency of future goal upon prior goals, based upon said at least one assumption, said demographic data, and said financial data; and

processing at least one financial position for said economic group based upon a analysis of said available financial resources and in response to at least one hypothetical event or transaction.

49. The method of claim 48 wherein the step of providing a simulator further comprises the step of providing at least one event handler for processing transactions and financial events associated with a hypothetical occurrence of a particular event.

50. The method of claim 49 wherein said at least one event handler is a virtual executor for simulating modifications to said economic group'"'"'s financial position resulting from a hypothetical death of a member of said economic group, and wherein said at least one goal includes probating an estate after said hypothetical death of said member.

51. The method of claim 50 wherein the step of providing a virtual executor further comprises at least one of the following steps:

projecting a death of a member of said economic group;

requesting data pertaining to said economic group;

receiving said data;

determining legal survivors and beneficiaries of said member;

paying necessary expenses from said estate;

determining and transferring to said simulator property amounts, net of said expenses and taxes, passing to said legal survivors and beneficiaries of said member;

projecting future financial needs of said legal survivors and beneficiaries; and

simulating disbursements of available financial resources by said legal survivors and beneficiaries until a hypothetical date.

52. The method of claim 51 wherein the step of determining and transferring further comprises at least one of the following steps:

compiling all assets and insurance policies included in said member'"'"'s gross estate;

assigning values to includable assets;

determining a value for life insurance policies designating said member as an insured;

assigning said value of said life insurance policies to beneficiaries;

depositing said value of said life insurance policy into a hypothetical estate checking account;

probating said gross estate based upon terms and provisions of said member'"'"'s will;

determining intestacy laws applicable to said member'"'"'s estate;

determining community property laws applicable to said member'"'"'s estate;

completing federal and state estate tax and inheritance tax returns;

calculating applicable inheritance taxes;

selling non-cash estate assets as needed to pay expenses;

distributing remaining property and outstanding debts secured by property to heirs and charities, pursuant to terms of said life insurance policies and terms and provisions of said member'"'"'s will and trust documents;

distributing a virtual memo to beneficiaries responsible for any state inheritance taxes on a received inheritance;

distributing a virtual memo to trustees of trusts established by said member'"'"'s will; and

indicating an amount of net property being deposited in trust on behalf of named beneficiaries according to terms of said trusts.

53. The method of claim 48 wherein the step of providing a simulator further comprises the step of providing a time value calculator for computing a present-day value for a simulated future financial position.

54. The method of claim 53 wherein the step of providing a time value calculator further comprises identifying a potential future financial shortage and calculating a present-day savings amount which would eliminate said potential future financial shortage.

55. The method of claim 48 wherein the step of providing a simulator further comprises the step of avoiding simulation of mutually exclusive hypothetical events or transactions.

56. The method of claim 48 further comprising the step of providing an earmarker for identifying specific economic group data with specific goals.

57. The method of claim 56 wherein the step of providing an earmarker further comprises the step of avoiding earmarking resources already earmarked for other current or future needs.

58. The method of claim 48 further comprising the step of providing a strategizer for comparing an economic group'"'"'s current financial position with at least one alternative financial position.

59. The method of claim 58 wherein the step of providing a strategizer further comprises, in any order, the steps of:

copying said economic group'"'"'s current financial position;

creating at least one alternative financial position by

(i) applying at least one strategy to a copy of said economic group'"'"'s current financial position; and

(ii) requesting that said simulator process transactions over time using said at least one strategy and said copy of said economic group'"'"'s current financial position;

comparing said current financial position to said at least one alternative financial position; and

demonstrating an impact of said at least one strategy on an economic group'"'"'s financial position.

60. The method of claim 59 wherein said at least one strategy includes modifying at least one data object selected from the group consisting of said economic group data, said goals, and said assumptions.

61. The method of claim 60 wherein said economic group data comprises at least one data object selected from the group consisting of demographic data and financial data.

62. The method of claim 48 further comprising the step of providing an output of an economic group'"'"'s financial plan based upon an analysis of said economic group'"'"'s financial position.

63. The method of claim 62 wherein said output of said economic group'"'"'s financial plan is a document that provides a current financial plan and at least one alternative financial plan, and wherein said current financial plan is based upon an analysis of said economic group'"'"'s financial position using current goals and assumptions and said at least one alternative financial plan is based upon an analysis of said economic group'"'"'s financial position using modified goals and assumptions.

64. The method of claim 48 further comprising the steps of:

providing a persistence system;

providing a relational database management system;

retrieving data objects from said relational database management system;

loading said data objects onto said persistence system; and

writing said data objects to said relational database management system.

65. The method of claim 64 wherein said persistence system maintains an object lookup table so that a data object exists in said relational database management system only once.

66. The method of claim 64 wherein the step of writing further comprises writing said data objects to said relational database management system only when said data objects have been modified.

67. A method for simulating an economic group'"'"'s financial position comprising the steps of:

providing economic group data for said economic group;

providing at least one goal having at least one assumption needed to achieve said goal;

associating said economic group data for said economic group with said at least one goal and said at least one assumption;

providing a simulator to analyze said economic group'"'"'s available financial resources with respect to fulfilling said at least one goal based upon said at least one assumption and to process at least one financial position for said economic group based upon an analysis of said available financial resources and in response to at least one hypothetical event or transaction; and

providing a virtual executor for simulating modifications to said economic group'"'"'s financial position resulting from a hypothetical death of a member of said economic group, and wherein said at least one goal includes probating an estate after said hypothetical death of said member.

68. The method of claim 67 wherein the step of providing a virtual executor further comprises at least one of the following steps:

projecting a death of a member of said economic group;

requesting data pertaining to said economic group;

receiving said data;

determining legal survivors and beneficiaries of said member;

paying necessary expenses from said estate;

determining and transferring to said simulator property amounts, net of said expenses and taxes, passing to said legal survivors and beneficiaries of said member;

projecting future financial needs of said legal survivors and beneficiaries; and

simulating disbursements of available financial resources by said legal survivors and beneficiaries until a hypothetical date.

69. The method of claim 68 wherein the step of determining and transferring further comprises at least one of the following steps:

compiling all assets and insurance policies included in said member'"'"'s gross estate;

assigning values to includable assets;

determining a value for life insurance policies designating said member as an insured;

assigning said value of said life insurance policies to beneficiaries;

depositing said value of said life insurance policy into a hypothetical estate checking account;

probating said gross estate based upon terms and provisions of said member'"'"'s will;

determining intestacy laws applicable to said member'"'"'s estate;

determining community property laws applicable to said member'"'"'s estate;

completing federal and state estate tax and inheritance tax returns;

calculating applicable inheritance taxes;

selling non-cash estate assets as needed to pay expenses;

distributing remaining property and outstanding debts secured by property to heirs and charities, pursuant to terms of said life insurance policies and terms and provisions of said member'"'"'s will and trust documents;

distributing a virtual memo to beneficiaries responsible for any state inheritance taxes on a received inheritance;

distributing a virtual memo to trustees of trusts established by said member'"'"'s will; and

indicating an amount of net property being deposited in trust on behalf of named beneficiaries according to terms of said trusts.

70. The method of claim 67 wherein the step of providing a simulator further comprises the step of providing a time value calculator for computing a present-day value for a simulated future financial position.

71. The method of claim 70 wherein the step of providing a time value calculator further comprises identifying a potential future financial shortage and calculating a present-day savings amount which would eliminate said potential future financial shortage.

72. The method of claim 67 further comprising the step of providing an earmarker for identifying specific economic group data with specific goals.

73. The method of claim 72 wherein the step of providing an earmarker further comprises the step of avoiding earmarking resources already earmarked for other current or future needs.

74. The method of claim 67 further comprising the step of providing a strategizer for comparing an economic group'"'"'s current financial position with at least one alternative financial position.

75. The method of claim 74 wherein the step of providing a strategizer further comprises, in any order, the steps of:

copying said economic group'"'"'s current financial position;

creating at least one alternative financial position by

(i) applying at least one strategy to a copy of said economic group'"'"'s current financial position; and

(ii) requesting that said simulator process transactions over time using said at least one strategy and said copy of said economic group'"'"'s current financial position;

comparing said current financial position to said at least one alternative financial position; and

demonstrating an impact of said at least one strategy on an economic group'"'"'s financial position.

76. The method of claim 75 wherein said at least one strategy includes modifying at least one data object selected from the group consisting of said economic group data, said goals, and said assumptions.

77. The method of claim 67 further comprising the step of providing an output of an economic group'"'"'s financial plan based upon an analysis of said economic group'"'"'s financial position.

78. The method of claim 77 wherein said output of said economic group'"'"'s financial plan is a document that provides a current financial plan and at least one alternative financial plan, and wherein said current financial plan is based upon an analysis of said economic group'"'"'s financial position using current goals and assumptions and said at least one alternative financial plan is based upon an analysis of said economic group'"'"'s financial position using modified goals and assumptions.