Simulator module for providing financial planning and advice

a financial planning and simulation module technology, applied in the field of financial planning and advice systems, can solve the problems of unsatisfactory conventional applications, insufficient blend of short-term and long-term needs of existing model portfolio engines, and the increasing sophistication of financial advice consumers, so as to facilitate financial advising and planning, facilitate integration, and facilitate comparison of customized strategies

Inactive Publication Date: 2005-01-06
AMERIPRISE FINANCIAL
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  • Summary
  • Abstract
  • Description
  • Claims
  • Application Information

AI Technical Summary

Benefits of technology

The present invention provides systems and methods for probability modeling which facilitates financial advising and planning. A portfolio integration module facilitates integration of at least one of a user's goals, assets, savings, and risk tolerance in analyzing and developing a customized strategy for financial planning of the user. A portfolio reconciler module communicates with the portfolio integration module to facilitate comparison of the customized strategy to other strategies and projected financial decisions in order to further facilitate the financial planning of the user. A stochastic modeling module in communication with the portfolio integration module and the portfolio

Problems solved by technology

However, consumers of financial advice are becoming increasingly sophisticated and are, therefore, demanding more complete services from financial service companies and advisors.
These conventional applications are unsatisfactory in several regards.
Existing model portfolio engines do not adequately blend short-term and long-term needs to arrive at a client's recommended portfolio.
Conventional applications often fail to provide a current list of available products within the application that are directed to specific consumer needs.
Furthermore, these applications do not offer a

Method used

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  • Simulator module for providing financial planning and advice
  • Simulator module for providing financial planning and advice
  • Simulator module for providing financial planning and advice

Examples

Experimental program
Comparison scheme
Effect test

case example

the older client's confinement starts in 2020

accumulation goal that occurs in the years 2018-2021

advisor indicated that the accumulation goal is not to be included in the long term care goal

Simulation treatment: there would be a goal expenses in the years 2018 and 2019; however, since the confinement period starts in 2020 and the accumulation goal is to be excluded in the long term care goal, the accumulation goal will not occur in 2020 and 2021. This treatment

APPENDIX B

makes the Lifetime simulation and Long Term Care Goal simulation the same up to the confinement period of the older client.

Outstanding issues:

APPENDIX C

Title: Stochastic Methodology—Sampling Process for Simulation

Section: 123

Summary:

System 100 will measure clients' probability of successfully reaching all of their financial goals over many different market conditions. The system 100 will stochastically vary the market forces over the length of the clients' financial future (simulation_duration). ...

example

Current annual living expenses input—$30,000

Retirement annual living expenses input—$25,000

% adjustment to expenses for death—70%

% adjustment to retirement living expenses via the Proposed “slider”—85% For a one-client case, use $21,000 ($30,000*0.70) for living expenses in the current and proposed.

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PUM

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Abstract

The present invention provides systems and methods for facilitating financial advising and planning for a user using a simulator module. In accordance with an exemplary embodiment of the present invention, the system includes a portfolio integration module for facilitating integration of a user's goals, assets, savings, and risk tolerance to facilitate analyzing and developing a customized strategy for financial portfolio planning of the user. A portfolio reconciler module in communication with the portfolio integration module facilitates comparison of the customized strategy to other strategies and projected user financial decisions in order to farther facilitate the financial portfolio planning of the user. A stochastic modeling module in communication with the portfolio integration module and the portfolio reconciler module for facilitating use of data from the portfolio integration module and the portfolio reconciler module in a stochastic modeling analysis using a synchronous stationary bootstrap sampling method to facilitate creation of a proposed situation portfolio for the user. A simulator module in communication with the portfolio integration module, the portfolio reconciler module, and the stochastic modeling module for facilitating forecasting the effects of the proposed situation portfolio on the user's portfolio, and monitoring, simulating, designing, and testing the portfolio integration module, the portfolio reconciler module, and the stochastic modeling module.

Description

FIELD OF INVENTION The present invention relates generally to financial planning and advice systems and, more specifically, to financial planning and advice systems using stochastic modeling with a stationary bootstrap sampling method to model a user's financial situation. BACKGROUND OF THE INVENTION Achieving personal financial objectives generally includes a long-term relationship with a trusted and knowledgeable financial advisor who can assist with periodic financial planning. A financial advisor who is able to develop these types of relationships and meet a client's need for periodic financial planning thereby facilitates client retention. Inaccurate consumer impressions that financial planning is a once in a lifetime event should be mitigated in order to facilitate advisor-client relationships and accurately assess the client's current financial position as well as their future direction. An initial evaluation of a client's financial situation, followed by periodic reevaluat...

Claims

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Application Information

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IPC IPC(8): G06Q90/00G06Q40/00
CPCG06Q40/00G06Q40/08G06Q40/06
Inventor JENSON, JODILIPINSKI, PATTI P.OSTREM, LINDASCARLATO, PATRICIAVANNEY, BETH M.
Owner AMERIPRISE FINANCIAL
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