System and method for managing tax-deferred retirement accounts

Abstract

A system and method of managing tax-deferred retirement accounts that enable the participants to invest in exchange traded funds (ETFs) and to forecast and intelligently plan for their retirement savings needs. The system and method preferably allow each participant to select an asset allocation model pursuant to which their investments will be managed and periodically rebalance the portfolio of each participant based on the selected asset allocation model.

What is claimed is: 
     
         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 periodically rebalancing said portfolio according to said asset allocation model.   
     
     
         2 . The system of  claim 1  wherein said plurality of tax-deferred retirement accounts comprise 401(k) 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 plurality of exchange traded funds are purchased by omnibus trading. 
     
     
         7 . The system of  claim 1  wherein said plurality of parameters are 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 401(k) savings account, current value of other tax-deferred retirement savings accounts, and current value of any taxable retirement savings accounts. 
     
     
         8 . A method of managing tax-deferred retirement accounts, comprising:
 providing a plurality of tax-deferred retirement accounts for investment by a plurality of participants;   providing a computerized system that allows said plurality of participants to conduct calculations of estimated retirement savings based on a plurality of parameters selectable by said plurality of participants;   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; and   periodically rebalancing said portfolio according to said asset allocation model.   
     
     
         9 . The method of  claim 8  wherein said plurality of tax-deferred retirement accounts comprise 401(k) accounts. 
     
     
         10 . The method of  claim 8  further comprising:
 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. 
 
     
     
         11 . The method of  claim 8  wherein said asset allocation model may be set by default. 
     
     
         12 . The method of  claim 8  wherein said asset allocation model may be selected by each of said plurality of participants. 
     
     
         13 . The method of  claim 8  wherein said plurality of exchange traded funds are purchased by omnibus trading. 
     
     
         14 . The method of  claim 8  wherein said plurality of parameters are 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 401(k) savings account, current value of other tax-deferred retirement savings accounts, and current value of any taxable retirement savings accounts.