Method and system for financial advising
DCFirst Claim
1. A method of financial advising, comprising:
- determining by a computer an initial value of a client investment portfolio;
obtaining by the computer a list of client investment goals, the list including ideal and acceptable values for each of the investment goals wherein the ideal value of each goal comprises the value for that particular goal that the client most prefers to achieve, and the acceptable value of each goal comprises the value for that particular goal that is less preferable to the client compared to the ideal value but that is still acceptable to the client;
obtaining by the computer a relative value comparison between pairs of investment goals within the list of goals;
simulating by the computer a plurality of model investment portfolio allocations over a predetermined time period using a capital market modeling technique, the simulation accounting for investments and expenditures planned to occur during the predetermined time period;
determining by the computer a recommendation comprising an investment allocation and a recommended value for each investment goal, where the recommended value for each goal is not better than the ideal value and not worse than the acceptable value, wherein the recommendation is determined using the using the relative value comparison, the ideal and acceptable values for each goal, and the simulation of the plurality of portfolio allocations, wherein the recommendation has a measured confidence of exceeding the recommended value for each goal, and wherein the measured confidence is within a predefined range; and
communicating the recommendation to the client.
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Abstract
A method of providing financial advice to a client that provides sufficient confidence that their goals will be achieved or exceeded but that avoids excessive sacrifice to the client'"'"'s current or future lifestyle and avoids investment risk that is not needed to provide sufficient confidence of the goals a client personally values. The method comprises obtaining typical client background information, as well as a list of investment goals, and ideal and acceptable values in dollar amounts and timing for each goal. The client is then asked to provide their preferences for each goal on the list compared to each other goal in the list. A recommendation is then created using the portfolio value, and the client goal preferences and the ideal and acceptable values of goals, by simulating models of the relevant capital markets.
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Citations
36 Claims
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1. A method of financial advising, comprising:
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determining by a computer an initial value of a client investment portfolio; obtaining by the computer a list of client investment goals, the list including ideal and acceptable values for each of the investment goals wherein the ideal value of each goal comprises the value for that particular goal that the client most prefers to achieve, and the acceptable value of each goal comprises the value for that particular goal that is less preferable to the client compared to the ideal value but that is still acceptable to the client; obtaining by the computer a relative value comparison between pairs of investment goals within the list of goals; simulating by the computer a plurality of model investment portfolio allocations over a predetermined time period using a capital market modeling technique, the simulation accounting for investments and expenditures planned to occur during the predetermined time period; determining by the computer a recommendation comprising an investment allocation and a recommended value for each investment goal, where the recommended value for each goal is not better than the ideal value and not worse than the acceptable value, wherein the recommendation is determined using the using the relative value comparison, the ideal and acceptable values for each goal, and the simulation of the plurality of portfolio allocations, wherein the recommendation has a measured confidence of exceeding the recommended value for each goal, and wherein the measured confidence is within a predefined range; and communicating the recommendation to the client. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12)
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13. A device for financial advising comprising:
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a processor configured for determining an initial value of a client investment portfolio; the processor further configured for obtaining a list of client investment goals, the list including ideal and acceptable values for each of the investment goals wherein the ideal value of each goal comprises the value for that particular goal that the client most prefers to achieve, and the acceptable value of each goal comprises the value for that particular goal that is less preferable to the client compared to the ideal value but that is still acceptable to the client; the processor further configured for obtaining a relative value comparison between pairs of investment goals within the list of goals; the processor further configured for simulating a plurality of model investment portfolio allocations over a predetermined time period using a capital market modeling technique, the simulation accounting for investments and expenditures planned to occur during the predetermined time period; the processor further configured for determining a recommendation comprising an investment allocation and a recommended value for each investment goal, where the recommended value for each goal is not better than the ideal value and not worse than the acceptable value, wherein the recommendation is determined using the using the relative value comparison, the ideal and acceptable values for each goal, and the simulation of the plurality of portfolio allocations, wherein the recommendation has a measured confidence of exceeding the recommended value for each goal, and wherein the measured confidence is within a predefined range; and the processor further configured for communicating the recommendation to the client. - View Dependent Claims (14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24)
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25. A computer-readable storage medium having computer-readable program code for financial advising stored therein, the computer-readable program code comprising:
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computer-usable program code for determining an initial value of a client investment portfolio; computer-usable program code for obtaining a list of client investment goals, the list including ideal and acceptable values for each of the investment goals wherein the ideal value of each goal comprises the value for that particular goal that the client most prefers to achieve and the acceptable value of each goal comprises the value for that particular goal that is less preferable to the client compared to the ideal value but that is still acceptable to the client; computer-usable program code for obtaining a relative value comparison between pairs of investment goals within the list of goals; computer-usable program code for simulating a plurality of model investment portfolio allocations over a predetermined time period using a capital market modeling technique, the simulation accounting for investments and expenditures planned to occur during the predetermined time period; computer-usable program code for, using the relative value comparison, the ideal and acceptable values for each goal, and the simulation of the plurality of portfolio allocations, determining a recommendation comprising an investment allocation and a recommended value for each investment goal, where the recommended value for each goal is not better than the ideal value and not worse than the acceptable value, wherein the recommendation has a measured confidence of exceeding the recommended value for each goal, and wherein the measured confidence is within a predefined range; and computer-usable program code for communicating the recommendation to the client. - View Dependent Claims (26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36)
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Specification