Method for defined contribution default benchmark

Abstract

A method for generating an integrated family of benchmarks representing portfolio allocations for a participant is described. At least two assets for a portfolio are identified. A current market rate for at least one of the assets and a break-even inflation rate for a predetermined time period are determined via a computing device. The computing device determines a portfolio allocation to each asset based on the current market rate and the break-even inflation for obtaining inflation-protected income for a predetermined number of years and then non-inflation protected income for subsequent years. The identified assets and the portfolio allocations are published via a network.

What is claimed is: 
     
         1 . A method of generating a benchmark representing portfolio allocations of portfolio assets for a participant, the method comprising:
 obtaining, via a computing device, at least one of stated payout ratios periodically for at least one treasury inflation protected securities (TIPS) portfolio or fund offered by an asset management company, or payouts of a predetermined number of years laddered TIPS portfolio;   identifying, via the computing device, at least an annuity sponsored by an insurance company;   selecting, via the computing device, a particular TIPS portfolio or fund based on the payout ratios and a particular annuity based on a current market price;   determining, via the computing device, a portfolio allocation for the selected TIPS portfolio or fund and the selected annuity so as to define a process for obtaining inflation-protected income for the predetermined number of years and then non-inflation protected income for subsequent years; and   publishing, via a network connected to the computing device, the portfolio assets and corresponding allocations.   
     
     
         2 . The method of  claim 1 , additionally comprising publishing, for a given participant, one or more of a break-even inflation rate, income at year zero, the cost of a deferred annuity that provides $1 for life beginning in a predetermined number (D) of years, and income at the predetermined number (D) of years. 
     
     
         3 . The method of  claim 1 , wherein a source of the funding of the portfolio assets includes one or more of defined contribution plan payouts, defined benefit plan payouts, 401(k) plan payouts, or any other retirement savings of any nature. 
     
     
         4 . The method of  claim 1 , wherein the treasury inflation protected securities portfolio or fund define an asset for obtaining income for the predetermined number of years and at the end of the predetermined number of years, the treasury inflation protected securities fund or portfolio has a balance of zero. 
     
     
         5 . The method of  claim 1 , wherein the particular annuity begins at a selected maturity of the treasury inflation protected securities portfolio or fund. 
     
     
         6 . A method of generating a benchmark representing portfolio allocations of portfolio assets for a participant, the method comprising:
 obtaining, via a computing device, at least one of stated payout ratios periodically for at least one inflation protected securities portfolio or fund offered by an asset management company, or payouts of a predetermined number of years laddered inflation protected securities portfolio;   identifying, via the computing device, a deferred annuity;   selecting, via the computing device, a particular inflation protected securities portfolio or fund based on the payout ratios and a particular deferred annuity based on a current market price;   determining, via the computing device, a portfolio allocation for the selected inflation protected securities portfolio or fund and the selected deferred annuity, based on at least a current break-even inflation rate, for obtaining inflation-protected income for the predetermined number of years and then non-inflation protected income for subsequent years; and   publishing, via a network connected to the computing device, the portfolio assets and corresponding allocations.   
     
     
         7 . The method of  claim 6 , additionally comprising publishing, for a given participant, two or more of the break-even inflation rate, income at year zero, the cost of the selected deferred annuity that provides a certain payout amount for life beginning in the predetermined number of years, and income at the predetermined number of years. 
     
     
         8 . The method of  claim 7 , wherein the certain payout amount is $1. 
     
     
         9 . The method of  claim 6 , wherein a source of the funding of the portfolio assets includes one or more of defined contribution plan payouts, defined benefit plan payouts, 401(k) plan payouts, or any other retirement savings of any nature. 
     
     
         10 . The method of  claim 6 , wherein the inflation protected securities portfolio or fund define an asset for obtaining income for the predetermined number of years and at the end of the predetermined number of years, the inflation protected securities fund or portfolio has a balance of zero. 
     
     
         11 . The method of  claim 6 , wherein the particular deferred annuity begins at a selected maturity of the inflation protected securities portfolio or fund. 
     
     
         12 . The method of  claim 6 , wherein the benchmark is generated at a predetermined frequency. 
     
     
         13 . The method of  claim 6 , wherein the benchmark is generated daily. 
     
     
         14 . The method of  claim 6 , additionally comprising publishing, via the network, a payout vector for a predetermined investment amount, the payout vector including an initial payout for year one, the break-even inflation rate, and the predetermined number of years. 
     
     
         15 . The method of  claim 14 , wherein the payout vector additionally includes a portfolio allocation percentage for the deferred annuity. 
     
     
         16 . The method of  claim 6 , wherein a portfolio allocation percentage for the deferred annuity and a portfolio allocation percentage for the inflation protected securities fund are separately calculated for male participants and for female participants at each participant age in a range of ages from age 60 to age 70. 
     
     
         17 . The method of  claim 16 , additionally comprising publishing, via the network, a payout vector for a predetermined investment amount for each combination of age and sex, the payout vector including an initial payout for year one, the break-even inflation rate, and the predetermined number of years. 
     
     
         18 . A method of generating a benchmark representing portfolio allocations of portfolio assets for a participant, the method comprising:
 obtaining, via a computing device, at least one of stated payout ratios periodically for at least one inflation protected securities portfolio or fund, or payouts of a predetermined number of years laddered inflation protected securities portfolio;   identifying, via the computing device, a deferred annuity;   selecting, via the computing device, a particular inflation protected securities portfolio or fund based on the payout ratios and a particular deferred annuity based on a current market price;   determining, via the computing device, a portfolio allocation for the selected inflation protected securities portfolio or fund and the selected deferred annuity based on at least an inflation protected securities distribution rate at the predetermined number of years for obtaining inflation-protected income for the predetermined number of years and then non-inflation protected income for subsequent years; and   publishing, via a network connected to the computing device, the portfolio assets and corresponding allocations.   
     
     
         19 . The method of  claim 18 , additionally comprising determining the inflation protected securities distribution rate at the predetermined number of years at a current break-even inflation rate. 
     
     
         20 . The method of  claim 19 , additionally comprising publishing, for a given participant, one or more of the break-even inflation rate, income at year zero, the cost of the selected deferred annuity that provides a certain payout amount for life beginning at the predetermined number of years, and income at the predetermined number of years. 
     
     
         21 . The method of  claim 20 , wherein the certain payout amount is $1. 
     
     
         22 . The method of  claim 18 , wherein the benchmark is generated at a predetermined frequency. 
     
     
         23 . The method of  claim 19 , additionally comprising publishing, via the network, a payout vector for a predetermined investment amount, the payout vector including an initial payout for year one, the break-even inflation rate, and the predetermined number of years. 
     
     
         24 . The method of  claim 23 , wherein the payout vector additionally includes a portfolio allocation percentage for the particular deferred annuity. 
     
     
         25 . The method of  claim 19 , wherein a portfolio allocation percentage for the deferred annuity and a portfolio allocation percentage for the inflation protected securities fund are separately calculated for male participants and for female participants at each participant age in a range of ages from age 60 to age 70. 
     
     
         26 . The method of  claim 25 , additionally comprising publishing, via the network, a payout vector for a predetermined investment amount for each combination of age and sex, the payout vector including an initial payout for year one, the break-even inflation rate, and the predetermined number of years.