Personal pension system and business method

• US 20060229964A1
• Filed: 10/14/2005
• Published: 10/12/2006
• Est. Priority Date: 04/06/2005
• Status: Abandoned Application

• Current Assignee: Fred Fox
• Original Assignee: Fred Fox
• Inventors: Fox, Fred
• Application Number:
  US11/251,030
• Publication Number:
  US 20060229964A1
• Time in Patent Office: Days
• 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 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

A system and method of managing monetary contributions for a deferred savings objective such as, for exemplary purposes only, funding college, wedding or marriage, retirement, or any other large expense expected to occur years in the future, wherein a consumer makes contributions into the deferred savings system, wherein the process of the deferred savings method is not tied to any particular employer or employment status, wherein principal contributions are guaranteed after a minimum holding period, and wherein pre-event or pre-retirement withdrawals are restricted.

Claims

1. A method of providing a personal pension, comprising the steps of:

a) securing a plurality of individual members, each said member contributing a quantity of funds to a respective individual pension account;

b) permitting each said individual member to select a beneficiary;

c) guaranteeing each said quantity of funds for each said respective individual pension account;

d) professionally managing said quantity of funds;

e) providing a plurality of annuity conversion options for each said individual pension account, wherein disbursement of annuity benefits commences upon attainment of a predetermined date;

f) penalizing each disbursement from each said individual pension account prior to said predetermined date;

g) providing individual access and supervision of each said individual pension account via a global networking system such as the Internet; and

h) enabling portability of each said individual pension account irrespective of employment status of said respective individual contributing member.

2. The method of providing a personal pension of claim 1, wherein said plurality of annuity conversion options comprises a joint and survivor form of an annuity selected from the group of:

varying percentage at benefit commencement, lump sum at benefit commencement, pre-retirement value forfeiture in exchange for enhanced return, fixed return on contributions, and/or unknown return with a guaranteed share.

3. The method of providing a personal pension of claim 1, wherein said penalty for each said disbursement from each said individual pension account prior to said predetermined date and within the first two years following said initial contribution to said personal pension is a first percentage early withdrawal fee;

wherein said penalty for each said disbursement from each said individual pension account prior to said predetermined date and within the third through fifth year after said initial contribution is a second percentage early withdrawal fee;

wherein, after five years elapses following said initial contribution, no penalty is assessed for each said disbursement from each said individual pension account prior to said predetermined date.

4. The method of providing a personal pension of claim 3, wherein penalized and non-penalized disbursements to individuals under age 55 are limited to a maximum amount equal to said principal contribution.

5. The method of providing a personal pension of claim 1, wherein, if said contributing participant dies before age 55 and before benefit distribution has begun, said designated beneficiary receives the total contributed principal;

if said contributing participant dies after age 55, said designated beneficiary receives said total contributed principal with earnings; and

if said contributing participant dies after benefits have begun and said benefit is a joint and survivor annuity, said annuity will continue, as stipulated by the joint and survivor annuity.

6. The method of providing a personal pension of claim 1, wherein said guarantee of each said quantity of funds for each said respective individual pension account is backed by an insurance trust, wherein each said quantity of funds guaranteed is limited to a published maximum.

18. The method of providing a personal pension of claim 3, wherein said first percentage withdrawal penalty is 20% and wherein said second percentage withdrawal penalty is 10%.

19. The method of providing a personal pension of claim 6, wherein said published maximum is $20,000,000.00.

7. A real-time, individual financial planning process with employer independence, comprising the steps of:

a) creating a secure portal accessible by participants via a global networking system;

b) enabling said participants to dictate individual fund contribution amounts via said portal;

c) enabling said participants to dictate individual fund contribution dates via said portal;

d) enabling said participants to control commencement date for initiation of return of benefits from said fund contribution via said portal; and

e) enabling said participants to control the format of return of benefits from said fund contribution via said portal.

8. The personal pension system and method of claim 7, wherein said funds managed via said portal are future valued assets.

15. The real-time, individual financial planning process with employer independence of claim 7, wherein said portal displays personal data, contribution history and future benefit values.

16. The real-time, individual financial planning process with employer independence of claim 7, wherein said portal displays and analyzes a plurality of investment vehicles.

9. A personal pension system and method, comprising the steps of:

a) making a plurality of cash equivalent contributions, wherein each said contribution, after a minimum holding period, is guaranteed against loss in principal until the earlier of a benefit commencement or death;

b) allowing financial development of a selected portion of said guaranteed principal via a guaranteed return;

c) allowing financial development of a selected portion of said guaranteed principal via a guaranteed share of a non-guaranteed investment return;

d) restricting withdrawals of said guaranteed principal during a minimum holding period;

e) penalizing withdrawals of said guaranteed principal until a preselected age is attained by the personal account contributor;

f) distributing said personal pension upon attainment of a preselected age.

10. The personal pension system and method of claim 9, wherein said penalized withdrawals are subjected to an early benefit reduction formula.

11. The personal pension system and method of claim 9, wherein commencement of said distribution of said personal pension at a date subsequent to the date of attainment of said preselected age results in said distribution being subjected to a late benefit enhancement formula.

12. The personal pension system and method of claim 9, wherein said cash equivalent contributions are after-tax contributions.

13. The personal pension system and method of claim 9, wherein said guaranteed return is set annually and said selected portion contributed during said relevant calendar period shall receive said guaranteed return for the duration of said development period.

14. The personal pension system and method of claim 9, wherein said guaranteed share is set annually and said selected portion contributed during said relevant calendar period shall receive said guaranteed share for the duration of said development period, irrespective of the performance.

17. The personal pension system and method of claim 9, wherein at least one employer contributes at least a portion of said cash equivalent contribution.

21. The personal pension system and method of claim 9, wherein said cash equivalent contributions are tax-deferred contributions.

22. The personal pension system and method of claim 9, wherein said cash equivalent contributions are tax exempt contributions.

20. An individual financial planning process with employer independence, comprising the steps of:

a) creating a secure portal accessible by participants via a global networking system;

b) enabling said participants to track individual fund contribution amounts via said portal;

c) enabling said participants to track individual fund contribution dates via said portal;

d) enabling said participants to track commencement date for initiation of return of benefits from said fund contribution via said portal; and

e) enabling said participants to track the format of return of benefits from said fund contribution via said portal.