SYSTEMS AND METHODS FOR DETERMINING INVESTMENT STRATEGIES

• US 20110270782A1
• Filed: 04/30/2010
• Published: 11/03/2011
• Est. Priority Date: 04/30/2010
• Status: Abandoned Application

• Current Assignee: Cornerstone Advisors, Inc. (Arizona)
• Original Assignee: Cornerstone Advisors, Inc. (Arizona)
• Inventors: Trenner, Robert F., Huse, Jeffrey A., Hart, Kenneth M., Milojevich, Michael
• Application Number:
  US12/771,956
• Publication Number:
  US 20110270782A1
• Time in Patent Office: Days
• US Class Current: 705/36.T
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/10 Tax strategies

Abstract

An investment strategy determines changes of a value of an asset portfolio over the time of a study period. For each of the incremental periods of the study period, an exemplary embodiment retrieves from a memory a base parameter value for the incremental period, wherein the base parameter value corresponds to one of a base inflation value, a base asset return value, and a base tax value; determines a first iteration parameter value based upon a statistical function associated with the base parameter value; and determines a value of an asset portfolio based upon the first iteration parameter value and the second iteration parameter value. A financial report is generated based upon the determined value of the asset portfolio for each of the incremental periods, wherein the generated financial report indicates changes of the value of the asset portfolio over the study period.

Claims

1. A method performed in a processor system that defines asset portfolio valuations over a study period, wherein the study period is defined by a plurality of sequential incremental periods, the method comprising:

retrieving an initial asset portfolio defining a plurality of assets and associated asset values from a memory communicatively coupled to the processor system;

performing a plurality of iterations for each of the incremental periods of the study period, wherein each iteration comprises;

retrieving from the memory a base asset return value defined for the incremental period;

determining a plurality of iteration asset return values from a predefined statistical function and the base asset return value, wherein each of the plurality of iteration asset return values represents a possible rate of return of the a value of the plurality of assets of the asset portfolio for the incremental period;

retrieving from the memory a base inflation value defined for the incremental period;

determining a plurality of iteration inflation values from the predefined statistical function and the base inflation value, wherein each of the plurality of iteration inflation values represents a possible rate of inflation affecting the value of the plurality of assets of the asset portfolio for the incremental period;

retrieving from the memory a base tax value defined for the incremental period;

determining a plurality of iteration tax values from the predefined statistical function and the base tax value, wherein each of the plurality of iteration tax values represents a possible tax rate affecting earnings of the plurality of assets of the asset portfolio for the incremental period;

determining an iteration asset portfolio value for the iteration based upon the plurality of iteration asset return values, the plurality of iteration inflation values, the plurality of iteration tax values, and the plurality of asset values of the asset portfolio; and

determining a value of the asset portfolio for each of the incremental periods based upon the iteration asset portfolio values respectively determined for each one of the incremental periods; and

generating a financial report based upon the asset portfolio values determined for each of the incremental periods, wherein the generated financial report indicates changes of the asset portfolio value over the study period.

2. The method of claim 1, wherein generating the financial report further comprises:

storing each of the asset portfolio values determined for each of the incremental periods of the study period;

transforming the asset portfolio values into a probable ending value curve; and

presenting the probable ending value curve on an output device.

3. The method of claim 1, further comprising:

communicating the financial report to a client terminal, wherein the client terminal is remote from the processor system, and wherein the financial report is processed by the client terminal for presentation on an output device communicatively coupled to the client terminal.

4. A method performed in a processor system that defines asset portfolio valuations over a study period, wherein the study period is defined by a plurality of sequential incremental periods, the method comprising:

for at least two iterations for each of the incremental periods of the study period;

from a memory communicatively coupled to the processor system, retrieving a base parameter value defined for the incremental period, wherein the base parameter value corresponds to one of a base inflation value, a base asset return value, and a base tax value;

determining a first iteration parameter value from a predefined statistical function associated with the base parameter value, wherein the first iteration parameter value corresponds respectively to one of a first iteration inflation value, a first iteration asset return value, and a first iteration tax value;

determining a second iteration parameter value from the predefined statistical function associated with the base parameter value, wherein the second iteration parameter value corresponds respectively to one of a second iteration inflation value, a second iteration asset return value, and a second iteration tax value;

determining a parameter value based upon the first iteration parameter value and the second iteration parameter value;

from the memory communicatively coupled to the processor system, retrieving an asset portfolio defining a plurality of assets and associated asset values; and

determining an asset portfolio value for the incremental period based upon the determined parameter value and the plurality of asset values of the asset portfolio; and

generating a financial report based upon the asset portfolio values determined for each of the incremental periods, wherein the generated financial report indicates changes of the asset portfolio value over the study period.

5. The method of claim 4, further comprising:

communicating the financial report to an output device, wherein the financial report is presented by the output device.

6. The method of claim 4, further comprising:

from the memory communicatively coupled to the processor system, retrieving an asset contribution schedule, wherein the asset contribution schedule defines at least one asset contribution defined by a value of the at least one asset contribution and a time of contribution of the at least one asset contribution,

wherein the determined asset portfolio value determined for the time of contribution of the at least one asset contribution includes the value of the at least one asset contribution.

7. The method of claim 4, further comprising:

from the memory communicatively coupled to the processor system, retrieving an asset depletion schedule, wherein the asset depletion schedule defines at least one asset depletion defined by a value of the at least one asset depletion and a time of depletion of the at least one asset depletion,

wherein the determined asset portfolio value determined for the time of depletion of the at least one asset depletion includes the value of the at least one asset depletion.

8. The method of claim 4, further comprising:

communicating the financial report to a client terminal, wherein the client terminal is remote from the processor system, and wherein the financial report is processed by the client terminal for presentation on an output device communicatively coupled to the client terminal.

9. The method of claim 4, wherein generating the financial report further comprises:

storing each of the determined asset portfolio values determined for each of the incremental periods of the study period; and

transforming the determined asset portfolio values into a probable ending value curve.

10. The method of claim 9, further comprising:

presenting the probable ending value curve on an output device.

11. The method of claim 4, wherein generating the financial report further comprises:

for each of the incremental periods of the study period, transforming the determined first iteration parameter value and the determined second iteration parameter value into an iteration parameter value range for each of the incremental periods of the study period.

12. The method of claim 11, further comprising:

presenting the iteration parameter value range for each of the incremental periods of the study period on an output device.

13. The method of claim 11, wherein the first iteration parameter value is a first iteration asset return value, wherein the second iteration parameter value is a second iteration asset return value, and wherein the iteration parameter value range for each of the incremental periods of the study period is based upon the first iteration asset return value and the second iteration asset return value.

14. The method of claim 11, wherein the first iteration parameter value is a first iteration inflation value, wherein the second iteration parameter value is a second iteration inflation value, and wherein the iteration parameter value range for each of the incremental periods of the study period is based upon the first iteration inflation value and the second iteration inflation value.

15. The method of claim 11, wherein the first iteration parameter value is a first iteration tax value, wherein the second iteration parameter value is a second iteration tax value, and wherein the iteration parameter value range for each of the incremental periods of the study period is based upon the first iteration tax value and the second iteration tax value.

16. A computer-readable storage medium whose contents, when executed, cause a processor system to perform a method comprising:

in a processor system, for at least two iterations for each of a plurality of sequential incremental periods of a study period;

receiving a base financial parameter value defined for the incremental period;

determining a first iteration financial parameter value from a predefined statistical function associated with the base financial parameter value;

determining a second iteration financial parameter value from the predefined statistical function associated with the base financial parameter value;

determining a financial parameter value based upon the first iteration financial parameter value and the second iteration financial parameter value;

receiving an asset portfolio defining a plurality of assets and associated asset values; and

determining an asset portfolio value for the incremental period based upon the determined financial parameter value and the plurality of asset values of the asset portfolio; and

generating a financial report based upon the asset portfolio values determined for each of the incremental periods, wherein the generated financial report indicates changes of the asset portfolio value over the study period.

17. The computer-readable storage medium of claim 16 wherein the base financial parameter value, the first iteration financial parameter value, and the second iteration financial parameter value correspond to one of a base inflation value, a base asset return value, and a base tax value.

18. The computer-readable storage medium of claim 16 wherein determining the financial parameter value based upon the first iteration financial parameter value and the second iteration financial parameter value includes averaging the upon the first iteration financial parameter value and the second iteration financial parameter.

19. The computer-readable storage medium of claim 16 wherein the predefined statistical function is a probability distribution associating likelihoods with possible financial parameter values.

20. The computer-readable storage medium of claim 16 wherein a different predefined statistical function is used for at least two of the plurality of sequential incremental periods.