System and Method for Managing Tax-Deferred Retirement Accounts

Abstract

A system and method of managing tax-deferred retirement accounts may allow a plurality of participants to invest in a portfolio having a plurality of exchange traded funds (ETFs) according to an asset allocation model. The system and method may use at least one regular contribution to selectively buy at least one underweighted exchange traded fund to cause a participant's portfolio to more closely conform to the asset allocation model. The system and method may allow a plurality of participants to conduct calculations of estimated retirement savings based on a plurality of parameters.

1 . A system for managing tax-deferred retirement accounts, comprising:
 a computer processor;   a computer readable medium comprising instructions executable by said computer processor for managing a plurality of tax-deferred retirement accounts for a plurality of participants;   said computer readable medium further comprising instructions for allowing said plurality of participants to conduct calculations of estimated retirement savings based on a plurality of parameters selectable by said plurality of participants;   said plurality of tax-deferred retirement accounts allowing each of said plurality of participants to invest in a portfolio comprising a plurality of exchange traded funds according to an asset allocation model;   said computer readable medium further comprising instructions for selectively buying into at least one underweighted exchange traded fund using at least one regular contribution so as to cause said portfolio to more closely conform to said asset allocation model.   
     
     
         2 . The system of  claim 1  wherein said plurality of tax-deferred retirement accounts comprises at least one of 401(k), 403(b), 457, and 409A accounts. 
     
     
         3 . The system of  claim 1  wherein said computer readable medium further comprises instructions for allowing said plurality of participants to conduct calculations illustrating tax advantages of saving in said plurality of tax-deferred retirement accounts versus saving in a taxable account. 
     
     
         4 . The system of  claim 1  wherein said asset allocation model may be set by default. 
     
     
         5 . The system of  claim 1  wherein said asset allocation model may be selected by each of said plurality of participants. 
     
     
         6 . The system of  claim 1  wherein said computer readable medium further comprises instructions for selling at least a portion of at least one over-weighted exchange traded fund in coordination with said at least one regular contribution so as to cause said portfolio to more closely conform to said asset allocation model. 
     
     
         7 . The system of  claim 1  wherein said plurality of parameters is selected from the group consisting of current age, proposed retirement age, estimated annual inflation rate, target annual rate of return, annual income, estimated annual salary increase percentage, percentage of current income desired at retirement, participant contribution percentage, employer matching contribution percentage, current value of retirement savings account, current value of other tax-deferred retirement accounts, and current value of any taxable retirement savings accounts.