Method of creating financial plans of action and budget for achieving lifestyle and financial objectives

• US 7,698,190 B2
• Filed: 02/15/2007
• Issued: 04/13/2010
• Est. Priority Date: 02/15/2007
• Status: Active Grant

• Current Assignee: Debra A. Coljohn
• Original Assignee: Debra A. Coljohn
• Inventors: Hollins, Thomas A., Penkalski, Thomas A., Coljohn, Debra A.
• Primary Examiner(s): Kalinowski; Alexander
• Assistant Examiner(s): Vyas; Abhishek
• Application Number:
  US11/706,174
• Publication Number:
  US 20080201269A1
• Time in Patent Office: 1,153 Days
• Field of Search: 705 35- 45
• 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 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A software program that allows an individual with a personal computer to develop and implement plans of action for achieving a preferred lifestyle that appears feasible based on the individual'"'"'s current and probable future financial circumstances.

Claims

1. A method of creating plans of financial actions on a computer system which includes an electronic control unit, input and output interface devices, computer accessible memory, internet communication device, communications hardware for accessing the internet and internet databases, and computer executable software including an operating system, an internet search engine, calculating and organizing programming, and artificial intelligence with rules and inference engine and a knowledge database, said method comprising:

inputting to said electronic control unit, via said input device, facts regarding geographic location, stage of life, lifestyle, anticipated life-changing events, risk tolerance, financial circumstances and financial goals;

storing said input facts in said computer accessible memory;

causing said operating system and artificial intelligence to respond to said input facts by (i) searching said computer accessible memory and said internet databases for information and data related to persons with similar geographic location, stage of life, lifestyle, life-changing events, risk tolerance, financial circumstances and financial goals, (ii) retrieving from said internet databases information and data similar to said input facts, and (iii) calculating and inferring from said input facts and said information and data a plan of financial actions consistent with said input facts and said information and data;

storing said information and data retrieved from said internet databases and said plan of financial actions in said computer accessible memory;

inputting to said electronic control unit, via said input device, at least one action chosen from said plan of financial actions;

storing said at least one action chosen from said plan of financial actions in said computer accessible memory;

calculating the probability that said at least one action chosen from said plan of financial actions can be achieved consistent with the risk tolerance, anticipated life-changing events, lifestyle, financial circumstances and financial goals contained in said computer accessible memory by executing the steps of;

applying said calculating programming to said financial plan of actions and the information and data stored in said computer accessible memory to (i) calculate the estimated minimum, expected and maximum financial outcomes that would result from implementing said at least one action chosen from said plan of financial actions, (ii) set the means of two separate normal distribution curves equal to said estimated expected financial outcome, and (iii) set the estimating certainty of each normal distribution curve to 0.99;

storing in said computer accessible memory said estimated minimum, expected and maximum financial outcomes, said means, and said estimating certainty;

applying said calculating programming to calculate the standard deviation of the first of said two separate normal distribution curves (σ

₁) and the standard deviation of the second of said two separate normal distribution curves (σ

₂) as determined by the formulae;

σ

1=(said estimated minimum financial outcome less said estimated expected financial outcome)/(−

2.576)

σ

2=(said estimated maximum financial outcome less said estimated expected financial outcome)/(2.576);

storing said first and second standard deviation values σ

₁ and σ

₂ in said computer accessible memory;

inputting to said electronic control unit, via said input device, an acceptable percentage chance of a successful financial outcome if said at least one action chosen from said plan of financial actions is implemented;

storing said acceptable percentage chance in said computer accessible memory;

applying said calculating programming to calculate the estimated probable low and probable high financial outcomes of implementing said at least one action chosen from said plan of financial actions as determined by the following formulae;

estimated probable low financial outcome=((the standardized variable that corresponds to the area under one half of the standard normal curve that equals

one half of said acceptable percentage chance)*(σ

₁))+(said estimated expected financial outcome)

estimated probable high financial outcome=((the standardized variable that corresponds to the area under one half of the standard normal curve that equals one half of said acceptable percentage chance)*(σ

₂))+(said estimated expected financial outcome);

storing said estimated probable low financial outcome and said estimated probable high financial outcome in said computer accessible memory; and

applying said organizing programming to said information and data stored in said computer accessible memory to display on said output device said plan of financial actions together with said acceptable percentage chance that the financial outcome of implementing said at least one action chosen from said plan of financial actions will fall between said estimated probable low and high financial outcomes.