Creating and maintaining a payout-ready portfolio within an investment plan to generate a sustainable income stream

US8521633B2 · kind B2 · utility

Assignee

• Financial Engines, Inc. · US

Inventors

• Jason S. Scott · Menlo Park, US
• Shinichiro Inoue · Redwood City, US
• Jeffrey N. Maggioncalda · Palo Alto, US
• David Ramirez · Oakland, US
• Wei-Yin Hu · Menlo Park, US
• John G. Watson · Menlo Park, US
• David Boudreau · Richmond, US
• Gregory Stein · Redmond, US
• James W. Shearer · San Francisco, US

Key dates

• Filing date: Sep 26, 2011
• Grant date: Aug 27, 2013
• Expiry date: Sep 26, 2031

Classification

• Technology area (CPC G): Physics
• CPC primary: G06Q40/06
• WIPO field: IT methods for management
• WIPO sector: Electrical engineering

Abstract

Financial advisory methods and systems for creating a steady lifetime income stream within an investment plan is provided. According to one embodiment, based on an investor's current holdings in the investment plan, a pattern of periodic cash payouts is identified that can be made to the investor from an in-plan payout program implemented with the limited universe of financial products available within the investment plan. The assets of the investment plan are rebalanced to form a payout portfolio and an equity exposure portfolio. The payout portfolio is constructed to create an annuity-like stream of income to support the pattern of periodic cash payouts and includes multiple bond funds. The equity exposure portfolio is constructed to address inflation risk by providing an ability to rise with equities markets. Finally, a periodic cash payout of the pattern of periodic cash payouts is caused to be paid to the investor from the investment plan.