System and method for facilitating management of a financial instrument

• US 8,370,179 B2
• Filed: 04/28/2010
• Issued: 02/05/2013
• Est. Priority Date: 09/14/2006
• Status: Active Grant

• Current Assignee: Empower Annuity Insurance Company of America
• Original Assignee: Prudential Insurance Company of America (Prudential Financial Incorporated)
• Inventors: Foley, Mark J., Steiner, Leonard C.
• Primary Examiner(s): Colbert, Ella
• Assistant Examiner(s): Shaikh, Mohammad Z
• Application Number:
  US12/769,109
• Publication Number:
  US 20100217627A1
• Time in Patent Office: 1,014 Days
• Field of Search: 705 35- 45, 705/1.1, 705/4
• US Class Current: 705/4
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 40/04 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 40/08 Insurance

Abstract

A computer-implemented method for facilitating the management of a financial instrument includes determining an account balance for a financial account. The financial account includes an investment portfolio and a springing guarantee of an income base for a retirement income. The retirement income includes periodic monetary transfers to be commenced at a target retirement date. Each periodic monetary transfer has a respective value based on the income base. The springing guarantee of the income base may be activated on an activation date. The account balance is stored in memory of the data processing system. The stored account balance is periodically updated based at least in part on market performance of the investment portfolio. Using a computing system, the activation date is determined based at least in part on the target retirement date and the income base is determined. A respective value is outputted for each one of the periodic monetary transfers. The respective value of each one of the periodic monetary transfers is based on the value of the stored income base at a time proximate the one of the periodic monetary transfers.

Claims

1. A non-transitory computer-readable media comprising logic operable, when executed by a data processing system, to:

determine and store an account balance for a financial account, the financial account comprising an investment portfolio and a springing guarantee of an income base for a retirement income, the retirement income comprising periodic monetary transfers to be commenced at a target retirement date, each periodic monetary transfer having a respective value based on the income base, the springing guarantee of the income base to be activated on an activation date, wherein the account balance is stored in memory of a computer system;

periodically update the stored account balance based at least in part on market performance of the investment portfolio;

determine and store the activation date, the determination of the activation date based at least in part on the target retirement date, the activation date antedating the target retirement date by a defined period of time, the activation date postdating an inception date of the financial account, wherein the activation date is stored in memory of the data processing system;

determine and store the income base, the income base being a value fixed at a time proximate the activation date, the determination of the income base based at least in part on the stored account balance at the time proximate the activation date, wherein the income base is stored in memory of the data processing system, and wherein the springing guarantee of the income base provides that the value of the income base will not decrease over time so long as discretional withdrawals from the financial account do not exceed a defined limit; and

output the respective value for each one of the periodic monetary transfers, the respective value of each one of the periodic monetary transfers being based on the value of the stored income base at a time proximate the one of the periodic monetary transfers.

2. The non-transitory computer-readable media of claim 1, wherein the logic is further operable, when executed by the data processing system, to automatically wire transfer the respective value for each periodic monetary transfer.

3. The non-transitory computer-readable media of claim 1, wherein the logic is further operable, when executed by the data processing system, to periodically update the stored income base, the update of the stored income base being based at least in part on market appreciation of the investment portfolio, the market appreciation of the investment portfolio occurring between the activation date and the target retirement date.

4. The non-transitory computer-readable media of claim 1, wherein the logic is further operable, when executed by the data processing system, to periodically update the stored income base, the update of the stored income base being based at least in part on market appreciation of the investment portfolio, the market appreciation of the investment portfolio occurring after the target retirement date.

5. The non-transitory computer-readable media of claim 1, wherein the springing guarantee of the income base provides that the income base will vary, if at all, independently of market depreciation of the investment portfolio.

6. The non-transitory computer-readable media of claim 1, wherein the logic is further operable, when executed by the data processing system, to automatically update the stored activation date, the update of the stored activation date being in response to an event affecting the target retirement date.

7. The non-transitory computer-readable media of claim 6, wherein the event is a withdrawal from the financial account.

8. The non-transitory computer-readable media of claim 1, wherein the investment portfolio comprises one or more investments selected from a plurality of optional investments diversified across a mix of asset classes.

9. The non-transitory computer-readable media of claim 1, wherein the logic is further operable, when executed by the data processing system, to change the composition of the investment portfolio based on one or more received instructions.

10. The non-transitory computer-readable media of claim 1, wherein the respective value of each one of the periodic monetary transfers is a defined percentage of the value of the stored income base at a time proximate the one of the periodic monetary transfers, the defined percentage being within the range of 1 and 20 percent.

11. The non-transitory computer-readable media of claim 1, wherein the defined period of time is greater than or equal to two years.

12. The non-transitory computer-readable media of claim 1, wherein the defined period of time is substantially equal to a period selected from the group comprising one year, two years, five years, ten years, and fifteen years.

13. A computer-implemented method for facilitating the management of a financial instrument, the method comprising:

using a data processing system, determining an account balance for a financial account, the financial account comprising an investment portfolio and a springing guarantee of an income base for a retirement income, the retirement income comprising periodic monetary transfers to be commenced at a target retirement date, each periodic monetary transfer having a respective value based on the income base, the springing guarantee of the income base to be activated on an activation date;

storing the account balance in memory of the data processing system;

periodically updating the stored account balance based at least in part on market performance of the investment portfolio;

using the data processing system, determining the activation date, the determination of the activation date based at least in part on the target retirement date, the activation date antedating the target retirement date by a defined period of time, the activation date postdating an inception date of the financial account, wherein the activation date is stored in memory of the data processing system;

using the data processing system, determining the income base, the income base being a value fixed at a time proximate the activation date, the determination of the income base based at least in part on the stored account balance at the time proximate the activation date, wherein the income base is stored in memory of the data processing system, and wherein the springing guarantee of the income base provides that the value of the income base will not decrease over time so long as discretional withdrawals from the financial account do not exceed a defined limit;

storing the income base in memory of the data processing system; and

outputting the respective value for each one of the periodic monetary transfers, the respective value of each one of the periodic monetary transfers being based on the value of the stored income base at a time proximate the one of the periodic monetary transfers.

14. The method of claim 13, further comprising wire transferring the respective value for each periodic monetary transfer.

15. The method of claim 13, further comprising periodically updating the stored income base, the update of the stored income base being based at least in part on market appreciation of the investment portfolio, the market appreciation of the investment portfolio occurring between the activation date and the target retirement date.

16. The method of claim 13, further comprising periodically updating the stored income base, the update of the stored income base being based at least in part on market appreciation of the investment portfolio, the market appreciation of the investment portfolio occurring after the target retirement date.

17. The method of claim 13, wherein the springing guarantee of the income base provides that the income base will vary, if at all, independently of market depreciation of the investment portfolio.

18. The method of claim 13, further comprising automatically updating the stored activation date, the update of the stored activation date being in response to an event affecting the target retirement date.

19. The method of claim 18 wherein the event is a withdrawal from the financial account.

20. The method of claim 13, wherein the investment portfolio comprises one or more investments selected from a plurality of optional investments diversified across a mix of asset classes.

21. The method of claim 13, further comprising, using the data processing system, changing the composition of the investment portfolio based on one or more received instructions.

22. The method of claim 13, wherein the respective value of each one of the periodic monetary transfers is a defined percentage of the value of the stored income base at a time proximate the one of the periodic monetary transfers, the defined percentage being within the range of 1 and 20 percent.

23. The method of claim 13, wherein the defined period of time is greater than or equal to two years.

24. The method of claim 13, wherein the defined period of time is equal or substantially equal to a period selected from the group comprising one year, two years, five years, ten years, and fifteen years.

25. A non-transitory computer-readable media comprising logic operable, when executed by a data processing system, to:

determine and store an account balance for a financial account, the financial account comprising one or more investments and a springing guarantee of an income base for a retirement income, the retirement income comprising periodic monetary transfers to be commenced at a target retirement date, each periodic monetary transfer having a respective value based on the income base, the springing guarantee of the income base to be activated on an activation date, wherein the account balance is stored in memory of a computer system;

periodically update the stored account balance based at least in part on market performance of the one or more investments;

determine and store the activation date, the determination of the activation date based at least in part on the target retirement date, the activation date antedating the target retirement date by a defined period of time, the activation date postdating an inception date of the financial account, wherein the activation date is stored in memory of the data processing system;

determine and store the income base, the income base being a value fixed at a time proximate the activation date, the determination of the income base based at least in part on the stored account balance at the time proximate the activation date, wherein the income base is stored in memory of the data processing system, wherein the springing guarantee of the income base provides that the value of the income base will not decrease due to negative market performance of the one or more investments, and wherein the springing guarantee of the income base provides that the income base will increase due to positive market performance of the one or more investments; and

output the respective value for each one of the periodic monetary transfers, the respective value of each one of the periodic monetary transfers being based on the value of the stored income base at a time proximate the one of the periodic monetary transfers.

26. The non-transitory computer-readable media of claim 25, wherein the logic is further operable, when executed by the data processing system, to automatically wire transfer the respective value for each periodic monetary transfer.

27. The non-transitory computer-readable media of claim 25, wherein the logic is further operable, when executed by the data processing system, to periodically update the stored income base, the update of the stored income base being based at least in part on positive market performance of the one or more investments, the positive market performance of the one or more investments occurring between the activation date and the target retirement date.

28. The non-transitory computer-readable media of claim 25, wherein the logic is further operable, when executed by the data processing system, to periodically update the stored income base, the update of the stored income base being based at least in part on positive market performance of the one or more investments, the positive market performance of the one or more investments occurring after the target retirement date.

29. The non-transitory computer-readable media of claim 25, wherein the springing guarantee of the income base provides that the income base will vary, if at all, independently of negative market performance of the one or more investments.

30. The non-transitory computer-readable media of claim 25, wherein the logic is further operable, when executed by the data processing system, to automatically update the stored activation date, the update of the stored activation date being in response to an event affecting the target retirement date.

31. The non-transitory computer-readable media of claim 30, wherein the event is a withdrawal from the financial account.

32. The non-transitory computer-readable media of claim 25, wherein the one or more investments are selected from a plurality of optional investments diversified across a mix of asset classes.

33. The non-transitory computer-readable media of claim 25, wherein the logic is further operable, when executed by the data processing system, to change the composition of the one or more investments based on one or more received instructions.

34. The non-transitory computer-readable media of claim 25, wherein the respective value of each one of the periodic monetary transfers is a defined percentage of the value of the stored income base at a time proximate the one of the periodic monetary transfers, the defined percentage being within the range of 1 and 20 percent.

35. The non-transitory computer-readable media of claim 25, wherein the defined period of time is greater than or equal to two years.

36. The non-transitory computer-readable media of claim 25, wherein the defined period of time is substantially equal to a period selected from the group comprising one year, two years, five years, ten years, and fifteen years.

37. A computer-implemented method for facilitating the management of a financial instrument, the method comprising:

using a data processing system, determining an account balance for a financial account, the financial account comprising one or more investments and a springing guarantee of an income base for a retirement income, the retirement income comprising periodic monetary transfers to be commenced at a target retirement date, each periodic monetary transfer having a respective value based on the income base, the springing guarantee of the income base to be activated on an activation date;

storing the account balance in memory of the data processing system;

periodically updating the stored account balance based at least in part on market performance of the one or more investments;

using the data processing system, determining the activation date, the determination of the activation date based at least in part on the target retirement date, the activation date antedating the target retirement date by a defined period of time, the activation date postdating an inception date of the financial account, wherein the activation date is stored in memory of the data processing system;

using the data processing system, determining the income base, the income base being a value fixed at a time proximate the activation date, the determination of the income base based at least in part on the stored account balance at the time proximate the activation date, wherein the income base is stored in memory of the data processing system, wherein the springing guarantee of the income base provides that the value of the income base will not decrease due to negative market performance of the one or more investments, and wherein the springing guarantee of the income base provides that the income base will increase due to positive market performance of the one or more investments; and

storing the income base in memory of the data processing system; and

outputting the respective value for each one of the periodic monetary transfers, the respective value of each one of the periodic monetary transfers being based on the value of the stored income base at a time proximate the one of the periodic monetary transfers.

38. The method of claim 37, further comprising wire transferring the respective value for each periodic monetary transfer.

39. The method of claim 37, further comprising periodically updating the stored income base, the update of the stored income base being based at least in part on positive market performance of the one or more investments, the positive market performance of the one or more investments occurring between the activation date and the target retirement date.

40. The method of claim 37, further comprising periodically updating the stored income base, the update of the stored income base being based at least in part on positive market performance of the one or more investments, the positive market performance of the one or more investments occurring after the target retirement date.

41. The method of claim 37, wherein the springing guarantee of the income base provides that the income base will vary, if at all, independently of negative market performance of the one or more investments.

42. The method of claim 37, further comprising automatically updating the stored activation date, the update of the stored activation date being in response to an event affecting the target retirement date.

43. The method of claim 42 wherein the event is a withdrawal from the financial account.

44. The method of claim 37, wherein the one or more investments are selected from a plurality of optional investments diversified across a mix of asset classes.

45. The method of claim 37, further comprising, using the data processing system, changing the composition of the one or more investments based on one or more received instructions.

46. The method of claim 37, wherein the respective value of each one of the periodic monetary transfers is a defined percentage of the value of the stored income base at a time proximate the one of the periodic monetary transfers, the defined percentage being within the range of 1 and 20 percent.

47. The method of claim 37, wherein the defined period of time is greater than or equal to two years.

48. The method of claim 37, wherein the defined period of time is equal or substantially equal to a period selected from the group comprising one year, two years, five years, ten years, and fifteen years.