Structured financial instruments

Abstract

A method of assembling a structured financial instrument, including electronic methods of pricing, selling, and administering the structured financial instrument are provided. A minimum deposit and a specified term are specified. The structured financial instrument is indexed to at least one economic indicator. A percentage of the original deposit may be withdrawn at a specified interval without penalty, with interest calculated at the end of the term reduced to reflect any prior partial withdrawals. The structured financial instrument is insured from the FDIC. In the event of death, a death benefit is provided equal to the value of the structured financial product on the date of death. At a specified time, a structured financial product holder has an option of choosing to lock in a specified percentage of the index gains to date, in exchange for re-upping the structured financial product into a new structured financial product of equal or greater term length and using a similar return framework as the original structured product. In additional embodiments, nursing home liquidity and required minimum distributions liquidity can be provided.

1 - 7 . (canceled) 
     
     
         8 . A method of electronically pricing a structured financial instrument comprising:
 specifying, into a memory, a minimum deposit and a specified term;   inputting, into the memory, data in at least one economic indicator to which the structured financial instrument is indexed;   inputting, into the memory, a percentage of the original deposit that may be withdrawn at a specified interval without penalty;   inputting, into the memory, at a specified time the structured financial product holder has an option of choosing to lock in a specified percentage of the index gains to date; and   calculating, by a processor in communication with the memory, index participation and return guarantee.   
     
     
         9 . The electronic method of pricing a structured financial instrument of  claim 8  further including performing sensitivity analysis on index performance, interest rate movements, and index volatility. 
     
     
         10 . The electronic method of pricing a structured financial instrument of  claim 8  further including inputting market interest rates and implied volatilities. 
     
     
         11 . An electronic method of administering a structured financial instrument comprising:
 inputting a minimum deposit and a specified term;   tracking at least one economic indicator to which the structured financial instrument is indexed;   determining the performance of the structured financial instrument with respect to a return guarantee;   timing the application of interest to the structured financial instrument;   notifying whether a percentage of the original deposit is to be withdrawn at a specified interval without penalty;   tracking whether a percentage of the original deposit has been withdrawn at a specified interval without penalty;   reducing interest at the end of the term to reflect any prior partial withdrawals;   notifying at a specified time an option of choosing to lock in a specified percentage of the index gains to date and, if so, re-upping the structured financial product into a new structured financial product; and   in the event of death, calculating a death benefit equal to the value of the structured financial product on the date of death.   
     
     
         12 . The electronic method of administering a structured financial instrument of  claim 11  further including maintaining records of current account balances, and to the extent needed, tracking and reporting taxable income. 
     
     
         13 . The electronic method of administering a structured financial instrument of  claim 11  further including tracking taxable income. 
     
     
         14 . The electronic method of administering a structured financial instrument of  claim 13  further including reporting taxable income. 
     
     
         15 . The electronic method of administering a structured financial instrument of  claim 11  further including calculating withdrawal amounts. 
     
     
         16 . The electronic method of administering a structured financial instrument of  claim 11  further including providing periodic account reports. 
     
     
         17 . An electronic method of selling a structured financial instrument comprising:
 educating a potential buyer of a structured financial product comprising:
 specifying a minimum deposit and a specified term; 
 inputting data in at least one economic indicator to which the structured financial instrument is indexed; 
 inputting a percentage of the original deposit that may be withdrawn at a specified interval without penalty; 
 inputting at a specified time the structured financial product holder has an option of choosing to lock in a specified percentage of the index gains to date. 
   indicating, in the event of death, a death benefit equal to the value of the structured financial product on the date of death; and   showing the returns that would be earned under different hypothetical index return scenarios.   
     
     
         18 - 21 . (canceled) 
     
     
         22 . The financial instrument of  claim 8  further including inputting the specified time as a halfway point of a structured financial product. 
     
     
         23 . The financial instrument of  claim 8  further including inputting data in at least one economic indicator selected from the group comprising the NYSE Composite; the S&P500; the RUSSELL 2000 index; the NIKKEI index; the FTSE index; the DAX index; the BTK index; the DJIA; and combinations thereof to which the structured financial instrument is indexed. 
     
     
         24 . The financial instrument of  claim 8  further including inputting data in at least one economic indicator selected from the group comprising the CPI; GDP; foreign exchange rates; and combinations thereof to which the structured financial instrument is indexed.