Method and system for establishing, monitoring, and reserving a guaranteed minimum value return on select investments

Abstract

The present invention provides a method and system for assuring a minimal guaranteed return on long-term investments, such as mutual funds or variable annuities. The invention includes a method and system for pricing, administration, customer presentation, and reserving relating to the guaranteed minimum return assurance. In addition, the present invention includes a method and system for allowing individual investors to control and easily change their typical asset allocation strategies. In order to accomplish the minimum guaranteed return, the present invention also includes sophisticated projection techniques, such as Monte Carlo simulation of investment performance. The present invention also includes features that allow the tracking of payments and removal of overcontributions from selected accounts, use of reserving techniques, optimizing investment diversification, proposal, issue, and administration of variable annuity riders, such as guaranteed minimum variable income benefit riders and guaranteed minimum income benefit riders, linkable to guaranteed minimum death benefits, and establish a charge for the guarantee.

1 . A computer implemented method, comprising the steps of:
 receiving input data that designates funds for investment to produce a current fund mix;   processing said input data to compare a diversification guideline to said fund mix, wherein said diversification guideline contains guidelines relating to fund diversification and investment objective diversification;   determining a pattern of investments to meet a preselected guaranteed amount; and   automatically calculating, by said computer, the projected guaranteed amount based on projection of fund performance.   
     
     
         2 . The computer implemented method of  claim 1  wherein the fund mix comprises select funds. 
     
     
         3 . The computer implemented method of  claim 1  wherein the fund mix comprises variable annuities. 
     
     
         4 . The computer implemented method of  claim 1  wherein said guidelines relating to fund diversification comprise a guideline that no more than 30% of the total amount of said funds designated for investment, may be invested into any one fund. 
     
     
         5 . The computer implemented method of  claim 1  wherein said guidelines relating to investment objectives comprise a guideline that at least two different investment objectives must be selected. 
     
     
         6 . The computer implemented method of  claim 5 , said guidelines further comprising a guideline that no one objective may be associated with more than 60% of the projected investment. 
     
     
         7 . The computer implemented method of  claim 1  wherein the step of determining a pattern of investments to meet a preselected guaranteed amount further comprises the steps of:
 suggesting a pattern of investments; 
 automatically calculating a suggested pattern guaranteed amount; 
 comparing the suggested pattern guaranteed amount to the preselected guaranteed amount; and 
 if the suggested pattern guaranteed amount is not at least the preselected guaranteed amount, returning to the step of suggesting a pattern of investments. 
 
     
     
         8 . The computer implemented method of  claim 1  further comprising the steps of:
 completing an information file for the user; and 
 applying the diversification guideline to the information file to determine whether the information file meets the guideline. 
 
     
     
         9 . The computer implemented method of  claim 8  wherein the step of applying the diversification guideline to the information file to determine whether the information file meets the guideline further includes the steps of, if the information file does not meet the diversification guideline:
 automatically noting exceptions; 
 automatically suggesting alternative inputs to meet the guaranteed amount; 
 inputting corrections; and 
 automatically returning to the step of completing an information file for the user. 
 
     
     
         10 . The computer implemented method of  claim 1  further comprising the step of comparing the projected guaranteed amount to the preselected guaranteed accumulated investment amount. 
     
     
         11 . A system comprising:
 a computer for comparing a diversification guideline to a designation of funds for investment, wherein said diversification guideline contains guidelines relating to fund diversification and investment objective diversification;   said computer being further operable to determine a pattern of investments to meet a preselected guaranteed amount; and   said computer being further operable to calculate the projected guaranteed amount based on projection of fund performance.   
     
     
         12 . The system of  claim 11  wherein the funds for investment comprise select funds. 
     
     
         13 . The system of  claim 11  wherein the funds for investment comprise variable annuities. 
     
     
         14 . The system of  claim 11  wherein said guidelines relating to fund diversification comprise a guideline that no more than 30% of the total amount of said funds designated for investment, may be invested into any one fund. 
     
     
         15 . The system of  claim 11  wherein said guidelines relating to investment objectives comprise a guideline that at least two different investment objective must be selected. 
     
     
         16 . The system of  claim 15 , said guidelines further comprising a guideline that no one objective may he associated with more than 60% of the projected investment. 
     
     
         17 . The system of  claim 11  wherein said computer operable to determine a pattern of investments to meet the preselected guaranteed amount, is further operable to:
 suggest a pattern of investments; 
 automatically calculate a suggested pattern guaranteed amount; 
 compare the suggested pattern guaranteed amount to the preselected guaranteed amount; and 
 if the suggested pattern guaranteed amount is not at least the preselected guaranteed amount, suggest another pattern of investments. 
 
     
     
         18 . The system of  claim 11  further comprising:
 said computer being further operable to create an information file for the user; 
 said computer being further operable to apply the diversification guideline to the information file to determine whether the information file meets the guideline; 
 
     
     
         19 . The system of  claim 18  wherein said computer operable to apply the diversification guideline to the information file to determine whether the information file meets the guideline, when said information file does not meet said diversification guidelines, is further operable to:
 automatically note exceptions; and 
 automatically suggest alternative inputs to meet the guaranteed amount. 
 
     
     
         20 . The system of  claim 11  wherein said computer is further operable to compare the projected guaranteed amount to the preselected guaranteed accumulated investment amount.