WO2001069348A2

WO2001069348A2 - System and method for determining and altering retirement income

Info

Publication number: WO2001069348A2
Application number: PCT/US2001/008286
Authority: WO
Inventors: Geoffrey S. Stiff; Billie Jo Vaughn
Original assignee: Ge Financial Assurance Holdings, Inc.
Priority date: 2000-03-15
Filing date: 2001-03-15
Publication date: 2001-09-20
Also published as: AU2001249208A1; WO2001069348A3

Abstract

A system and method for determining and altering retirement income profiles for users at or near retirement is provided (20). The user receives qualitative and quantitative assessments of the retirement income profile (22), as well as education regarding his/her profile. The user may learn information about various types of products (28) and products categories (30) for investment of assets to realize retirement income. Further, the user may alter the allocation of products, as currently invested, to ensure that his/her retirement income goals are met (34).

Description

S YSTEM AND METHOD FOR DETERMINING AND ALTERING RETIREMENT INCOME

Field of the Invention

The present invention relates generally to systems and methods for determining and altering retirement income profiles, and more particularly for determining and altering retirement income profiles for users at or near retirement to assist in ensuring increased confidence that retirement income goals are met.

Background of the Invention

Financial planriing, especially for retirement, has become increasingly important. A myriad of investing and financial product options, including stocks, bonds, real estate, mutual funds, annuities, and other similar financial and investment vehicles require careful planning and attention. The variety of options may be confusing, as inflation, interest rates, rates of return, and other variables must be factored to determine income for retirement.

Financial planning may be of greater immediate importance to a person who is at or near retirement. A person may wish to ensure that current assets are distributed such that retirement income goals will be met, such as ensuring that retirement income meets a predetermined amount (e.g., 80% of pre-retirement income). Retirement income goals may also include ensuring that retirement income remains stable and is not altered by outside events (e.g., downturns in the stock market, inflation, etc.) and ensuring that retirement income assets will last a given time period (e.g., a person's lifetime). Meeting financial goals may require determining the rate of return and risk associated with various investment vehicles. Such determination may be difficult to make without substantial time and cost expenditures to research and make an informed decision. Current financial tools focus on accumulating assets to prepare for retirement, generally for people far away from retirement. These tools suffer from the drawback of failing to provide an understanding of a persons current retirement position, a confidence level that retirement goals will be met. These and other drawbacks exist. Summary of the Invention

An object of the present invention is to overcome these and other drawbacks in existing systems and methods.

Another object of the invention is to provide a system and method for determining a retirement income profile for a user at or near retirement.

Another object of the invention is to provide a system and method for affording options to alter the retirement income profile.

Additional objects and advantages of the invention will be set forth in part in the description, or may be learned by practice of the invention. The objects and advantages of the invention may be realized and attained by means of instrumentalities and combinations particularly pointed out in the appended claims.

To achieve these objects and in accordance with the purpose of the invention, as embodied and broadly described herein, a system and method for providing financial planning of retirement income for a user at or near retirement is provided wherein the method comprises the steps of: presenting at least one user appraisal query to the user; generating a user appraisal profile based on the user's response to the at least one appraisal query; presenting at least one retirement income query to the user; calculating a retirement income profile based on the user's response to the at least one retirement income query; and presenting at least one option to alter the calculated retirement income profile, wherein the at least one option is based on the calculated appraisal result and the calculated retirement income.

The accompanying drawings, which are incorporated in and constitute a part of this specification, illustrate an embodiment of the invention and, together with the description, serve to explain the principles of the invention.

Brief Description of the Drawings

Figure 1 is a flowchart for the process for determining expected retirement income and presenting options for altering the retirement income according to an embodiment of the invention. Figure 2a is a graphic user interface for viewing and responding to queries according to an embodiment of the invention. Figure 2b is a graphic user interface for viewing a user appraisal profile according to an embodiment of the invention.

Figure 3 is a graphic user interface illustrating the user's current monthly income and expenses and the user's confidence level according to an embodiment of the invention.

Figure 4 is a graphic user interface for viewing a proposed product allocation for the user according to an embodiment of the invention.

Figure 5 is a schematic representation of a retirement income system for access through a network according to an embodiment of the invention. Figure 6 is a schematic representation of a system for determining retirement income according to an embodiment of the invention.

Detailed Description of the Preferred Embodiments

Reference will now be made in detail to the present preferred embodiment of the invention, an example of which is illustrated in the accompanying drawings in which like reference characters refer to corresponding elements.

The present invention is described in relation to a system and method for determining and altering retirement income profiles. Nonetheless, the characteristics and parameters pertaining to the system and method may be applicable to determining and altering other types of profiles.

Fig.l is a flow-chart illustrating a process for determining and altering retirement income profiles for a user at or near retirement. The process of the invention first conducts a qualitative analysis of a user's preparedness for retirement a degree of risk the user is willing to accept to achieve a particular income to support the user's lifestyle expectations. Once the qualitative analysis is completed, the process proceeds to a quantitative analysis of the product allocation recommended for the user based upon the confidence/risk indicator and the user's lifestyle expectations. At step 10, the qualitative analysis begins with one or more user appraisal queries presented to the user. Responses to the user appraisal queries are received at step 12, and a user appraisal profile is generated and presented at step 14. At step 15, the user determines if more information is need. If not, the user ends the evaluation at step 34. If more information is desired, the user proceeds to the quantitative analysis at step 16, where retirement income, expense and asset queries are presented. Responses to the retirement income queries are received at step 18, and a retirement income profile is calculated and presented at step 20. The acceptability of the retirement income profile can be decided at step 22. If the retirement income profile is acceptable, the process ends at step 34. If the retirement income profile is not acceptable, risk allocation queries are presented at step 24. Responses to risk allocation queries are received at step 26, and a risk tolerance profile is generated and presented at step 28. Options for altering the retirement income profile are presented at step 30, and responses to the options are received at step 32. A retirement income profile can again be calculated and presented, at step 20, based on the options selected. The method of Fig. 1 will now be described in greater detail.

According to an embodiment of the invention, at step 10, one or more user appraisal queries may be presented to the user on a computer display device through a processor (e.g., a personal computer), such as illustrated in greater detail in Fig. 5. The user is presented a variety of questions designed to determine a user appraisal profile. The queries or questions may elicit information about the user, such as what resources are used to make financial decisions, whether the user is self-employed, how often the user relies on professional advisors for investing or tax purposes, what investments are used significantly, the user's desired level of involvement with investments, the user's investment experience, financial preparations related to longevity (e.g., plans for assisted living), current net worth, date since will/estate documents were updated, what individuals are financially dependent on the user, and other similar types of questions.

According to an embodiment of the invention, these user appraisal queries may be presented in a soft key answer presentation, where, when a query is presented, a plurality of soft key answers are presented. Fig. 2a illustrates a graphic user interface 400, where user appraisal queries are presented on a display module. Each question has one or more answers having soft keys 402. The user may designate one or more soft keys 402 to respond to a particular user appraisal query. By way of example only, the user is presented with the query "What is your level of investment experience with the following?" and is then presented with different types of investment vehicles, such as annuities, individual stocks, mutual funds, and money market accounts. The user then indicates an experience level by activating the appropriate soft key 402 (e.g., clicking on the soft key with a mouse, pressing a predetermined button on a keyboard, etc.). By way of this example, the user may indicate a low level of experience in annuities, a medium level of experience in individual stocks, and a high level of experience in both mutual funds and money markets. Other manners for presenting queries and receiving responses may also be used.

According to an embodiment of the invention, the user is presented with a number of queries, thereby requiring the user to scroll through a plurality of pages of queries. The user may be presented with a Back icon 404 and a Next icon 406, as illustrated in Fig. 2a. Activating Back icon 404 allows the user to view a previous page, while activating Next icon 406 allows the user to view the next page. Other manners of navigating through one or more pages of queries may also be used.

At step 12, the user's responses to the user appraisal queries are received. According to an embodiment of the invention, responses to the appraisal queries are input by the user (e.g., on a user's personal computer). Responses by the user are received at a processor, such as processor 304 illustrated in Fig. 6 (the system of Fig. 6 will be described in more detail below), which may be located at a location remote from the user. For example, the response input by the user may be transmitted over a network 102 connection to a central controller module 112, as illustrated in Fig. 5 (the system of Fig. 5 will be described in more detail below). It should be noted, however, that other manners of receiving the input responses may also be used.

At step 14, a user appraisal profile is generated and presented to the user. The user appraisal profile may comprise determinations of various factors relating to the user's retirement preparedness, including financial assistance (e.g. , the amount of help a user needs from others), financial experience, financial complexity (e.g., how complex the user's personal financial situation is), financial flexibility (e.g., the level of control desired by the user), and other factors relating to retirement preparedness. The user appraisal profile may also combine the determinations and generate an overall determination of the user's retirement preparedness. For example, Fig. 2b illustrates a graphical user interface for displaying overall preparedness of the user for retirement, as well as the levels of financial assistance, financial experience, financial complexity, and financial flexibility of the user.

The user appraisal profile may also be generated based on various weighting allocated to the user's responses to the user appraisal queries. By way of example, one query may have a first weighting of importance for determining the financial assistance category of the user appraisal profile, and may have a second weighting for determining the financial complexity category of the user appraisal profile. The values for the weightings may vary depending on the queries, the type of user appraisal profile to be generated and other factors. Further, each individual category of financial preparedness may receive a relative weighting. The individual categories may then be combined to form an overall user appraisal category. Other types of weightings and other manners of appraisal profiles may also be used.

The user appraisal profile may be a qualitative assessment of the user, including, for example, assessments of the user's financial education, financial experience, comfort level in tracking and managing investments, and other information. Such a qualitative assessment may educate the user on his/her financial preparedness, thereby potentially removing the user's fear and anxiety associated with his/her retirement finances, as well as providing tools and education for the user to proactively meet retirement goals. According to an embodiment of the invention, the step 14 of generating the user appraisal profile may be performed at the user's location, such as at a processor being used by the user (see Fig. 6). According to another embodiment of the invention, the step 14 of generating the user appraisal profile may be performed remote from the user, such as at a central controller or processor (see Fig. 5). Systems for implementing the present invention will be described in greater detail below.

At step 15, the user determines if he/she desires more information beyond that provided by the user appraisal profile. If no further information is desired, the user ends the process at step 34. If more information is desired, the user may continue with step 16. At step 16, one or more retirement income queries are presented to the user.

Retirement income queries are questions presented to the user to determine the amount of retirement income available to the user and the retirement income needs of the user. These retirement income queries may be questions about retirement expenses (e.g., housing, living, health and medical care and insurance, consumer debt, etc.), retirement resources (e.g., personal retirement assets, employer retirement plans, equity investments, fixed investments, certificates of deposit, money market accounts, etc.), asset allocation (e.g., aggressive, fixed, growth, value, real estate, etc.), retirement income, user's debt (e.g., credit card debt, mortgages, etc.), multi-industry product allocation (e.g. , distribution of assets among a full range of different types of financial products, such as certificates of deposit, savings accounts, stocks, annuities, mutual funds, insurance, etc.) and other similar types of queries. The retirement income queries may also be questions about various retirement assumptions for the user. Such retirement assumptions may include the user designating a date of birth, age at retirement, assumed life expectancy, assumed annual inflation rate, assumed annual income tax rate, current income, and other retirement assumptions. According to an embodiment of the invention, the user may also be presented with assumed answers, such as an assumed life expectancy, an assumed inflation rate, or other assumed answers. The user may elect to use the assumed answers, or the user may elect to provide different answers. By way of example only, the user may determine that the user's family history of longevity may lead to a longer than average life expectancy for the user, and select a longer life expectancy than the assumed life expectancy, thereby accounting for more retirement income required due to the longer life. By way of another example, the user may determine that the assumed answer for the annual rate of inflation is too high, and that a lower rate of interest would be more accurate. By way of a further example, the user may also be provided with options to alter lifestyle expectations, such as to account for travel or other considerations. Other manners for providing queries may also be used.

At step 18, the user's responses to the retirement income queries are received, such as by a processor (see Fig. 6) or by a central controller remote from the user (see Fig. 5), and a retirement income profile is calculated and generated at step 20. The calculated retirement income profile may include estimates of retirement income and retirement expenses, a confidence level indicating the degree of certainty of achieving the user's retirement income goals, and' other information related to retirement income. According to an embodiment of the invention, estimates of retirement income and retirement expenses may be provided for a particular time period (e.g., weekly, monthly, yearly, etc.). By way of example, the retirement income profile may comprise an estimate of $2,000 per month in retirement income, and an estimate of $3,000 per month in retirement expenses. According to an embodiment of the invention, the estimated confidence level may indicate the certainty of achieving the user's income goals based on the user's current retirement income profile.

Various aspects of the retirement income profile may be determined based on weightings assigned to particular queries. Some queries may be considered more important than other queries. Such queries may receive a larger weighting, thereby enabling the generation of the retirement income profile with desired characteristics. According to an embodiment of the invention, each asset and product type may be assigned various degrees of risk. Based on the user's current mix of investment vehicles, financial products, assets and other retirement income, and the assigned risk values for these items, the degree of overall confidence (e.g., a confidence level) of achieving the user's goal of receiving a certain level of income for a given time period (e.g., monthly, quarterly, etc.) during retirement. By way of example the user's lifestyle expectations may be weighed against risks necessary to achieve certain goals, and retirement income levels. Other manners of providing a retirement income profile may also be used.

The retirement income profile generated at step 18 may comprise a qualitative assessment of the user's retirement income, including, for example, an assessment of the user's actual retirement income and expenses, as well as an assessment based on the user's predicted longevity, expected income sources and current assets. The assessment may translate these factors into a suggestion for the user to obtain various product and asset distribution and allocations. The confidence level provides a quantitative assessment of tradeoffs for risk versus return for specific product allocations and distributions. The retirement income profile generated at step 18 may further comprise a qualitative assessment for getting a user prepared for altering a retirement income profile. Other quantitative and qualitative assessments may also be provided. Figure 3 is a graphic user interface 200 illustrating the user's current monthly income and expenses and the user's confidence level for achieving the monthly income. According to an embodiment of the invention, an asset allocation window 202 displays how the user's assets are allocated (e.g. 45% in stocks, 30% in deferred annuities, etc.). The display may be graphical, textual, numerical, or a combination.

A confidence level window 204 displays an indication of whether the user is likely to reach his her retirement income goals. The confidence level may be displayed graphically, textually, numerically or via some combination of such display means. By way of example only, as shown in Fig. 3, the confidence level may be displayed as a graphic slide with an indication of the user's current confidence level and the user's minimum desired confidence level.

A retirement income window 206 displays the user's current retirement income and retirement expenses picture based upon the current asset allocation and product mix. The display for the retirement income window 206 may be graphical, textual, numerical, or some combination. By way of example, the retirement income window 206 may display the user's current monthly income and the user's estimated monthly expenses. According to an embodiment of the invention, the retirement income window 206 may provide the user's current retirement income and expenses picture. By way of example only, the retirement income window 206 may display that the user has an initial monthly retirement income of $2,500 and monthly retirement expenses of $3,000. Based upon this picture, the user may return to the retirement income, expense and asset queries and enter different answers, or change his her previous answers. Retirement income window 206 may then also display a modified monthly retirement income of $2,700, thereby allowing the user to determine how particular changes in circumstances effect retirement income goals. A profile window

208 may allow the user to alter the retirement income profile, as set forth below. An exit window 210 allows the user to exit the program. It should be noted, however, that other manners for displaying the retirement income profile may also be used.

Following the calculation of the retirement income profile in step 20, the user may view the retirement income profile and determine whether the calculated retirement income profile is acceptable at step 22. If the retirement income profile meets the user's retirement goals, the user may end the process at step 34. If the calculated retirement income profile is not acceptable, the user may continue, and receive one or more risk allocation queries at step 24. Risk allocation queries may be questions designed to determine the level of risk the user is comfortable with. According to an embodiment of the invention, the risk allocation queries may comprise questions about attitudes towards inflation, investment philosophy, market volatility, risk versus return, investment time horizons, and other questions related toward the user's view of risk. Other manners of risk allocation questions may also be used.

At step 26, the user's responses to the risk allocation queries are received by the system, such as at a central controller module (see Fig. 5) or at a processor (see

Fig. 6), and the user's risk tolerance profile is generated and presented at step 28. According to an embodiment of the invention, the risk tolerance profile is based on the user's responses to the risk allocation queries, and may include a suggestion of an appropriate mix of investment vehicles based on the user's desired balance of risk and return. Other manners of risk tolerance profiles may also be used.

At step 30, the user is presented options for altering the retirement income profile previously calculated. According to an embodiment of the invention, the user may be presented with options to reassess the product allocation, the rate of inflation, and other information related to the retirement income profile. According to an embodiment of the invention, Fig. 4 illustrates a graphic user interface 250 for providing options for the user to alter the retirement income profile. A pie chart 252 may display a current allocation of products, while chart 254 may provide a brief description of each product and a numerical designation of each product's allocation. By way of example only, chart 254 may designate that stock and bonds comprise 50% of the user's products, mutual funds comprise 10% of the products, immediate annuities comprise 15% of the products, deferred annuities comprise 10% of the products, and emergency funds comprise 15% of the products. According to an embodiment of the invention, each "slice" of the pie chart (e.g., product class) may have associated with it various descriptions and explanations for each asset and product class. There may also be comparisons among the various asset classes and products, thereby enabling the user to increase his/her retirement income education. According to an embodiment of the invention, for users who are not familiar with various types of investment vehicles and/or financial products, icons in section

258 of graphical user interface of Fig. 4 may be selected by the user to permit the user to receive information about a specific type of investment vehicle or financial product in a description window 260. By way of example only, we can assume that the user is unfamiliar with deferred annuities. The user may select the icon in section 258 related to deferred annuities and an explanation about deferred annuities may be displayed in description window 260. According to an embodiment of the invention, such descriptions may be low level descriptions aimed at users with little or no knowledge about the investment or financial vehicle.

As shown in Fig. 5, the user can review his/her recommended versus current product allocation (an example of such is graphically illustrated by 252, 256 and 258) to achieve the income level desired while staying within the level of risk with which such user is comfortable. According to an embodiment of the invention, if the user is dissatisfied with the product allocation or is willing to assume a higher level of risk for a greater income, the user may at step 30, alter his/her profile by reviewing and/or revising his/her responses to the prior confidence level queries.

At step 32, the user's responses to the queries are received, such as by a processor (see Fig. 6) or by a central controller (see Fig. 5), and a new retirement income profile is calculated based on new product allocations. By way of example, the user may alter the allocation of retirement products recommended, such as by responding to the queries in a manner indicating that the user is willing to assume a greater rate of inflation, and a lower tax rate. Based on these new assumptions, the new retirement income profile for the user may be generated and presented to the user. The user may determine whether the new retirement income profile is acceptable, or whether changes should be made. The user may perform these steps as many times as necessary to determine an acceptable retirement income profile.

According to an embodiment of the invention, descriptions of suggested products and classes of financial products may also be made available to the user. These products may be specific types of financial products, such as stocks, deferred annuities, or other types of investment and/or financial products. Or, classes of products may be provided from various class designations, such as aggressive, growth, income, and other class types of products. These descriptions may enable the user to learn about specific types of financial products and classes of products, thereby enabling the user to select appropriate financial products to improve his/her retirement income profile. The present invention also provides informational and educational opportunities for users, specifically users at or near retirement. The user may obtain qualitative and quantitative assessments of his/her retirement income profile based on various factors, including longevity, income sources, current assets, expected expenses, inflation and tax rates, and other factors. Such assessments may enable the user to determine whether his/ er retirement income goals will be met, and provide options for allowing the user to meet those goals. The user may reallocate assets, determine expenses, and change expected inflation and tax rates to generate greater confidence that hisher retirement income goals can be met. A greater confidence level may reduce the user's fears that retirement goals won't be met, as well as reduce any fear he/she may have concerning handling and dealing with financial matters related to these retirement goals. Descriptions of various financial products may also prompt users to consider a wider range of financial products across multiple industries, such as savings accounts, certificates of deposit, certain insurance policies and other similar financial products. Figure 5 illustrates a System 100 according to an embodiment of the present invention. System 100 comprises multiple users 105 (or "clients" or "computers") connected to Network 102 through multiple Connector Providers (CPs) 110. Network 102 may be any network that permits multiple users to connect and interact. According to an embodiment of the invention, Network 102 may be a dedicated line to connect users, the Internet, an intranet, a local area network (LAN), a wide area network (WAN), or other type of network. CP 110 may be a provider that connects the user to a network 102. For example, CP 110 may be an internet service provider (ISP), a dial-up access means, such as modem, or other manner of connecting to network 102. In actual practice there may be significantly more users connected to System 100 than shown in Fig. 5. This would mean that there would be additional users which are connected through the same CPs shown or through other CPs. Nevertheless, for purposes of illustration, the discussion will presume four users 105 connected to Network 102 through two CPs 110.

According to an embodiment of the invention, users 105 may make use of any computing device capable of accessing Network 102 through CP 110. Alternatively, some or all of users 105 may access Network 102 through a direct connection, such as a TI line, or similar connection. Figure 5 shows four computers 105a - 105d, each having a connection to Network 102 through a CP 110a and 110b. Computers 105a - 105d may be personal computers such as one located in the user's home, or may be other devices which allow the user to access and interact with others on Network 102. According to an embodiment of the invention, both computers 105a and 105b may be connected to Network 102 through the same CP 110a. Central controller module 112 may also have a connection to Network 102 as described above. Central controller module 112 may communicate with one or more data storage modules 114, the latter being discussed in more detail below. According to an embodiment of the invention, each computer 105a -105d may be configured as a typical home-based personal computer. Other configurations may also be used. Each computer 105a - 105d may contain a processor module 104, a display module 108, and a user interface module 106. Each computer 105a-105d may have at least one user interface module 106 for interacting and controlling the computer 105a- 105d. User interface module 106 may be one or more of a keyboard, joystick, touchpad, scanner or any similar device or combination of devices. Each of computers 105a-105d may also include a display module 108, such as a CRT display or other device.

System 100 further includes a central controller module 112. Central controller module 112 may maintain a connection to Network 102. This connection may be a high speed, large bandwidth connection, such as a TI or T3 line, a cable connection, a telephone line connection, DSL connection, or other type connection. Central controller module 112 functions to permit users 105a-105d to interact with each other in connection with various applications, messaging services and other services which may be provided through System 100.

Central controller module 112 preferably comprises either a single server computer or multiple server computers configured to appear to clients 105 as a single resource. Central controller module 112 communicates with a number of data storage modules 114. Various databases may be available in a data storage module 114 as necessary depending upon the specific applications and services made available through System 100. In practice, data stored in a data storage module 114 may be merged into a single database or into groups of databases. According to an embodiment of the invention, data storage module 114 may be located on one or more data storage devices, where the data storage devices are combined or separate from central controller module 112. Physically, the databases may or may not be co-located on the same storage device. Data storage module 114 may contain information about users 105a-105d, such as responses to various queries, user appraisal profiles, retirement income profiles, and risk tolerance profiles. Various profiles may be saved for later retrieval and review, by the user 105 or intermediary (e.g., a financial advisor). Further, such profiles may be shared with third parties, such as banks, financial service providers, or others. Additionally, reports may be generated regarding such profiles for one or more users 105, where the reports may be used to learn about various information about users 105. The reports, which may be stored in data storage module 114, may comprise information about users 105 and their various profiles, thereby enabling a third party (e.g., a receiver of the report) to learn information about a specific user 105, or information about different groups of users 105. Other information about users 105 may also be stored.

Data storage module 114 may include an information database module which may contain a variety of different types of information. Central controller module 112 may record various collective user information in data storage module 114, such as where users 105 are located, average age of users 105, average net worth of users 105, and other collective information.

Processor module 116 performs the various processing functions required in the practice of the process taught by the present invention, such as generating the user appraisal profile, the retirement income profile, the risk tolerance profile, and other similar processing functions. Processor module 116 may be a standard processor, such as a central processing unit (CPU), which is capable of processing the information received. Product storage module 118 stores information related to various potential investment products. Product information, such as descriptions of various annuities (e.g., deferred annuities, immediate annuities, etc.), stocks, bonds, and other products, comparisons of the various products, and descriptions of various classes of products (e.g., growth, income, etc.) may also be stored in product storage module 118 for retrieval by central controller module 112. The stored product information may be retrieved and presented to the user.

Actuarial storage module 120 stores various information related to actuarial tables, such as life expectancy, expectancy of illness, and other information related to actuarial tables. Additionally, other information, such as an estimated rate of inflation, an estimated income tax level, or other information necessary for the user to create various types of profiles may be stored in the actuarial storage module 120. As necessary, central controller module 112 may access the appropriate information from that information stored in the actuarial storage module 120 to create a specific profile. While system 100 of Fig. 5 discloses a computer 105 connected to Network

102, it is understood that a personal digital assistant ("PDA"), a mobile telephone, a television, or other device that permits access to Network 102 may be used to arrive at the system of the present invention.

A consumer user 105 can connect to system 100 from the home computer 105 via the internet, to evaluate a current retirement income profile. System 100 may also be used by an institutional professional user, such as a financial advisor. Using a computer 105 connected through an internal network 102, the financial advisor may determine and alter a retirement income profile for a client. Other types of users may also find utility in system 100 for a variety of types of uses. Fig. 6 illustrates a schematic of a local system to support a retirement income e valuator according to an embodiment of the invention. System 300 comprises a processor module 304, a data storage module 310, an input/output (I/O) module 302, a printer device 312, a display module 308, and a user interface module 306.

According to an embodiment of the invention, processor module 304 coordinates information flow in system 300 and may be comprised of a central processing unit (CPU) of a computer. Data storage module 310 stores information related to users, such as user responses, various profiles generated, and other similar information.

Input/Output (I/O) module 302 permits the user to transmit and receive information at processor module 304. I/O module 302 may be a direct network connection, such as a dedicated line, or an indirect connection such as through the internet (world wide web) and a browser. Other methods of connection may also be used.

System 300 has at least one user interface module 306 for interacting and controlling processor module 304. User interface module 306 may be one or more of a keyboard, joystick, touchpad, scanner or any similar device or combination of devices. System 300 also includes a display module 308, such as a CRT display or other device. Printer device 312 may be a standard printer (e.g. , inkjet, laser printer, etc.) or other device that allows the user to print information and results arrived at by the practice of the method of the present invention. Processor module 304 communicates with a number of data storage modules

310. Various databases may be available in a data storage module 310 as necessary depending upon the specific applications and services made available through system 300. Data storage module 114 may contain information about users, such as responses to various queries, user appraisal profiles, retirement income profiles, and risk tolerance profiles. Data storage module 310 may also include an information database module which may contain a variety of different types of information, such as user responses to queries, user profiles, and other information.

Such a system may be used by a consumer user at home, where the user may download information, such as from a remote site over a network, or from a computer readable medium (e.g. CD-ROM, magnetic diskette, etc.). Such a system may be used by an institutional user, such as a financial advisor, where the financial advisor has loaded onto a local computer software for practicing the methods of the present invention. Other manners of using this system may also be used.

According to another embodiment of the invention, a computer-usable medium having computer readable program code embodied therein may be provided for practicing the method of the present invention. For example, the computer-usable medium may comprise a CD ROM, a floppy disk, a hard disk, or any other computer- usable medium. One or more of the components of the system may comprise computer readable program code that is provided on the computer-usable medium such that when the computer-usable medium is installed on a computer system, those components cause the computer system to perform the functions described. According to one embodiment, processor module 104, user interface module

106, display module 108, central controller module 112, data storage module 114, processor module 116, product storage module 118, actuarial storage module 120, input/output module 302, data storage module 310, processor module 304, user interface module 306, and display module 308 may comprise computer-readable code that, when installed on a computer, perform the functions described above. Also, only some of the components may be provided in computer-readable code.

Additionally, various entities and combinations of entities may employ a computer to implement the components performing the above described functions. According to an embodiment of the invention, the computer may be a standard computer comprising an input device, an output device, a processor device, and data storage device. According to other embodiments of the invention, various components may be different department computers within the same corporation or entity. Other computer configurations may also be used. According to another embodiment of the invention, various components may be separate entities such as corporations or limited liability companies. Other embodiments, in compliance with applicable laws and regulations, may also be used.

According to one specific embodiment of the present invention, a system may comprise components of a software system. The system may operate on a network and may be connected to other systems sharing a common database. Other hardware arrangements may also be provided.

Other embodiments, uses and advantages of the present invention will be apparent to those skilled in the art from consideration of the specification and practice of the invention disclosed herein. The specification and examples should be considered exemplary only. The intended scope of the invention is only limited by the claims appended hereto.

Claims

CLAIMS What is Claimed is:

1. A method for providing financial planning of retirement income for a user at or near retirement, the method comprising the steps of: presenting at least one user appraisal query to the user; generating a user appraisal profile based on the user's response to the at least one appraisal query; presenting at least one retirement income query to the user; calculating a retirement income profile based on the user's response to the at least one retirement income query; and presenting at least one option to alter the calculated retirement income profile, wherein the at least one option is based on the calculated appraisal result and the calculated retirement income.

2. The method according to claim 1, wherein the step of generating the user appraisal profile further comprises the sub-step of determining at least one of: a) a level of financial assistance the user needs; b) a level of complexity of the user' s personal financial circumstances; c) a level of financial experience of the user; and d) a level of financial flexibility of the user.

3. The method according to claim 1, wherein the user appraisal profile is a qualitative assessment.

4. The method according to claim 1, wherein the at least one retirement income query comprises at least one of: a) a retirement assumption query; b) a life expectancy query; c) a retirement expenses query; d) a retirement asset query; e) a retirement income query; and f) a retirement product query.

5. The method according to claim 1, wherein the retirement income profile comprises a quantitative element.

6. The method according to claim 1, further comprising the steps of: presenting at least one risk allocation query to the user; and calculating a risk tolerance level based on the user's response to the at least one risk allocation query.

7. The method according to claim 6, wherein the step of presenting the at least one option further comprises the sub-step of presenting at least one option for altering the allocation of the user's retirement assets.

8. The method according to claim 1, wherein the retirement income profile further comprises a confidence level assessment for determining that the user's financial retirement goals will be met.

9. The method according to claim 1, wherein the retirement income further comprises: an income amount corresponding to the expected amount of income the user will receive in a predetermined time period during retirement; and an expense amount corresponding to the expected amount of expenses the user will incur in a predetermined time period during retirement.

10. The method according to claim 9, wherein the predetermined time period for the income amount and the expense amount is one month.

11. A system for providing financial planning of retirement income for a user at or near retirement, the system comprising: a query presentation module for: a) presenting at least one user appraisal query to the user; b) presenting at least one retirement income query to the user; and c) presenting at least one option to alter the calculated retirement income profile; and a processor module for: a) generating a user appraisal profile based on the user's response to the at least one appraisal query; b) calculating a retirement income profile based on the user' s response to the at least one retirement income query; wherein the at least one option to alter the calculated retirement income profile is based on the calculated appraisal result and the calculated retirement income.

12. The system according to claim 11, wherein generating the user appraisal profile further comprises determining at least one of: a) a level of financial assistance the user needs; b) a level of financial complexity of the user; c) a level of financial experience of the user; and d) a level of financial flexibility of the user.

13. The system according to claim 11, wherein the user appraisal profile is a qualitative assessment.

14. The system according to claim 11, wherein the at least one retirement income query comprises at least one of: a) a retirement assumption query; b) a life expectancy query; c) a retirement expenses query; d) a retirement resource query; e) a retirement income query; and f) a retirement product query.

15. The system according to claim 11, wherein the retirement income profile comprises a quantitative element.

16. The system according to claim 11, wherein: the presentation module presents at least one risk allocation query to the user; and the processing module calculates a risk tolerance level based on the user's response to the at least one risk allocation query.

17. The system according to claim 16, wherein presenting the at least one option further comprises presenting at least one option for altering the allocation of the user's retirement assets.

18. The system according to claim 11, wherein the retirement income profile further comprises a confidence level assessment for determining that the user's financial retirement goals will be met.

19. The system according to claim 11, wherein the retirement income further comprises: an income amount corresponding to the expected amount of income the user will receive in a predetermined time period during retirement; and an expense amount corresponding to the expected amount of expenses the user will incur in a predetermined time period during retirement.

20. The system according to claim 19, wherein the predetermined time period for the income amount and the expense amount is one month.