Principal guaranteed savings and investment system and method

Abstract

A system and method for mass market hedge find investing is proposed that preferably works in conjunction with the U.S. Treasury's Treasury Direct program for direct investment in U.S. Government securities. A primary investment in a principal-guaranteed, fixed term financial instrument, such as U.S. Government securities, including U.S. Notes, Bonds and Treasury Inflation-Protected Securities (TIPS) having principal linked to the Consumer Price Index, wherein the principal is guaranteed to the extent of the full faith and credit of the U.S. Government, generates an interest income stream. The interest stream is electronically diverted to a separate account within an aggregated pool invested in a hedge fund over a predetermined time horizon. The fund is preferably run by an experienced chief portfolio strategist and a money-management team.

1 . A method for investing in a hedge fund, comprising:
 selecting a first time horizon and providing financial principal to purchase a corresponding first financial instrument;   selecting a second time horizon and a corresponding second financial instrument;   issuing shares for the second financial instrument purchased with income from the first financial instrument; and   receiving financial principal from first financial instrument at the first time horizon.   
   
   
       2 . The method of  claim 1 , further comprising redeeming shares of the second financial instrument at the second time horizon. 
   
   
       3 . The method of  claim 1 , further comprising monetizing an income stream from the first financial instrument to produce the income. 
   
   
       4 . The method of  claim 1 , wherein the first financial instrument is one or more instruments selected from the group consisting of U.S. Notes, U.S. Bonds, and U.S. Treasury Inflation-Protected Securities. 
   
   
       5 . The method of  claim 1 , further comprising redeeming shares in the second financial instrument at other than the second time horizon and charging a penalty for share redemption. 
   
   
       6 . The method of  claim 1 , wherein the first time horizon and the second time horizon are an identical length of time. 
   
   
       7 . The method of  claim 1 , wherein the second time horizon is longer that the first time horizon. 
   
   
       8 . The method of  claim 1 , further comprising periodically updating information concerning a share in the second financial instrument. 
   
   
       9 . The method of  claim 8 , wherein the information comprises a net asset value of the share. 
   
   
       10 . The method of  claim 8 , wherein the information comprises per share management fees. 
   
   
       11 . A system for investing in a hedge fund, comprising:
 a display comprising on-screen controls;   a processor coupled to a memory and the display; and   program code stored on a media, that, when executed by the processor and in response to an investor's manipulation of the on-screen controls, causes the processor to:
 select a first time horizon and purchase a corresponding first financial instrument; 
 select a second time horizon and a corresponding second financial instrument; 
 issue shares for the second financial instrument purchased with income from the first financial instrument; and 
 receive financial principal from first financial instrument at the first time horizon. 
   
   
   
       12 . The system of  claim 11 , wherein the program code further causes the processor to redeem shares in the second financial instrument at the second time horizon. 
   
   
       13 . The system of  claim 11 , wherein the program code further causes the processor to monetize an income stream from the first financial instrument to produce the income. 
   
   
       14 . The system of  claim 11 , wherein the first financial instrument is one or more financial instruments selected from the group consisting of U.S. Notes, U.S. Bonds, and U.S. Treasury Inflation-Protected Securities. 
   
   
       15 . The system of  claim 11 , wherein the program code further causes the processor to redeem shares in the second financial instrument at other than the second time horizon and charging a penalty for share redemption. 
   
   
       16 . The system of  claim 11 , wherein the first time horizon and the second time horizon are an identical length of time. 
   
   
       17 . The system of  claim 11 , wherein the second time horizon is longer that the first time horizon. 
   
   
       18 . The system of  claim 11 , wherein the program code further causes the processor to periodically update information concerning a share in the second financial instrument. 
   
   
       19 . The system of  claim 18 , wherein the information comprises a net asset value of the share. 
   
   
       20 . The system of  claim 11 , wherein the second financial instrument comprises shares in a hedge fund.