System, method, and computer program product for providing stabilized annuity payments and control of investments in a variable annuity

• US 7,401,037 B2
• Filed: 02/20/2002
• Issued: 07/15/2008
• Est. Priority Date: 02/20/2001
• Status: Active Grant

• Current Assignee: Prudential Insurance Company of America (Prudential Financial Incorporated)
• Original Assignee: Prudential Insurance Company of America (Prudential Financial Incorporated)
• Inventors: Kuperstock, N David, Arena, Robert, O'Donnell, Robert, Schwartz, Robert, Boronow, Gordon
• Primary Examiner(s): Trammell; James P.
• Assistant Examiner(s): Wright; J. Bradley
• Application Number:
  US10/079,795
• Publication Number:
  US 20020184129A1
• Time in Patent Office: 2,337 Days
• Field of Search: 705/35
• US Class Current: 705/35
• 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
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

In one embodiment, a method of managing assets for stabilizing anticipated periodic payments, allocating the assets to first and second pools; at periodic intervals, comparing the current value of the assets in the first pool to a present value of the remaining payments; and, when the current value is less the present value, reallocating a portion of the assets from the second pool to the first pool so that the first asset pool has a current value representing the present value. In another embodiment, a method for managing assets for stabilizing anticipated periodic payments includes allocating the assets into first and second pools; establishing a first payment amount; determining a first trigger value; assessing a current value of the assets; and reallocating assets from the second pool to the first pool to increase the first payment amount in response to the current value being greater than the first trigger value.

Claims

1. A method of managing assets for stabilizing payment amounts in a series of anticipated periodic payments over a time period using a computer having a memory, the method comprising the steps of:

storing information relating to said assets and said series of anticipated periodic payments in memory;

determining an initial value of said assets;

defining a first pool by allocating a portion of said assets to said first pool having a first value representing an initial present value of the anticipated periodic payments;

defining a second pool by allocating a portion of said assets to said second pool having a second value representing the initial value of said assets less said first value;

at periodic intervals over the time period;

determining a third value representing a subsequent value of the assets in said first pool; and

comparing said third value to a fourth value representing a present value of the remaining anticipated periodic payments; and

when said third value is less than said fourth value, reallocating a portion of said assets from said second pool to said first pool so that said first asset pool has a new value representing said fourth value;

wherein;

the anticipated periodic payments are paid to an annuitant; and

said second pool includes assets designated for at least one beneficiary; and

wherein reallocating a portion of said assets from said second pool results in a decrease in the value of said assets designated for said at least one beneficiary.

2. A method of managing assets for stabilizing payment amounts in a series of anticipated periodic payments over a time period using a computer having a memory, the method comprising the steps of:

storing information relating to said assets and said series of anticipated periodic payments in memory;

determining an initial value of said assets;

defining a first pool by allocating a portion of said assets to said first pool having a first value representing an initial present value of the anticipated periodic payments;

defining a second pool by allocating a portion of said assets to said second pool having a second value representing the initial value of said assets less said first value;

at periodic intervals over the time period;

determining a third value representing a subsequent value of the assets in said first pool; and

comparing said third value to a fourth value representing a present value of the remaining anticipated periodic payments; and

when said third value is less than said fourth value, reallocating a portion of said assets from said second pool to said first pool so that said first asset pool has a new value representing said fourth value;

wherein the payment amount is reduced only when said second value is substantially zero.

3. A method for managing assets for stabilizing payment amounts in a series of anticipated periodic payments over a time period, the method comprising the steps of:

allocating the assets into a first pool and a second pool;

establishing a first payment amount;

determining a first trigger value;

assessing a current value of the assets; and

reallocating assets from said second pool to said first pool to increase the first payment amount to a second payment amount in response to said current value being greater than said first trigger value;

wherein;

the anticipated periodic payments are paid to an annuitant; and

said second pool contains assets designated for at least one beneficiary; and

wherein reallocating from said second pool to said first pool results in a decrease in the value of said assets designated for said at least one beneficiary.

4. A method for managing assets for stabilizing payment amounts in a series of anticipated periodic payments over a time period, the method comprising the steps of:

allocating the assets into a first pool and a second pool;

establishing a first payment amount;

determining a first trigger value;

assessing a current value of the assets; and

reallocating assets from said second pool to said first pool to increase the first payment amount to a second payment amount in response to said current value being greater than said first trigger value;

wherein the assets assessed are the assets allocated into said second pool; and

wherein the payment amount is reduced only when said current value of said assets is substantially zero.