Computerized system and method for optimizing after-tax proceeds

• US 7,343,336 B1
• Filed: 08/23/2000
• Issued: 03/11/2008
• Est. Priority Date: 02/19/1999
• Status: Expired due to Fees

• Current Assignee: David Gottstein
• Original Assignee: Efficient Tax LLC
• Inventors: Gottstein, David Richard
• Primary Examiner(s): Kramer; James
• Assistant Examiner(s): Felten; Daniel S.
• Application Number:
  US09/644,126
• Time in Patent Office: 2,757 Days
• Field of Search: 705/36, 705/35, 705/37, 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, the method comprising:

receiving tax, investment and expectation data at a processor;

performing comparative tax sensitivity analysis based on the tax, investment and expectation data over at least one investment time period using a software program executed by the processor; and

based on the sensitivity analysis, determining and outputting from the processor to an output device an optimal after-tax investment strategy path from a plurality of investment strategy paths over the at least one investment time period so as to optimize the after-tax proceeds from the plurality of investment strategies.

2. The computerized method of claim 1, wherein the investment data corresponds to a plurality of individual lots of investments and the tax sensitivity analysis is performed on a lot-by-lot basis.

3. The computerized method of claim 2, including receiving user-customized investment expectation data or financial adviser-based investment expectation data at the processor.

4. The computerized method of claim 2, wherein the software outputs the monetary valuation of the optimal after-tax investment strategy.

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

6. The computerized method of claim 5, wherein the comparative 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.

7. The computerized method of claim 2, wherein the step of receiving tax and investment data includes receiving the tax and investment data at the processor through an input window displayed on a user interface screen.

8. The computerized method of claim 7, wherein:

the software program includes a spreadsheet program for generating a spreadsheet grid including a plurality of cells on the user interface; and

the tax and investment data is received by the processor through data entry into predetermined cells of the spreadsheet grid.

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

10. The computerized method of claim 7, wherein the software program includes a browser for generating at least one network-based data entry window as the input window.

11. The computerized method of claim 7, wherein the processor includes a computation server for performing the comparative tax sensitivity analysis and the determination of the optimal after-tax investment strategy path.

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

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