Investment advice systems and methods

Abstract

The present invention provides investment advice systems. One version of the present invention provides investment advice systems that allow a user to select one or more advisors from a list of investment advisors. According to this version of the invention, the end user can receive advice on a particular transaction either separately from each investment advisor or in consensus. The system offers advice in part on the user's portfolio, tax position and risk profile and in part on the advisors evaluation of current market conditions. Thus, when a user is considering making a transaction, the user can obtain advice that can take into portfolio information including a user's proposed transaction and / or user portfolio information. A user armed with the above-described customized advice can execute a specific transaction and have their portfolio updated to reflect execution of that (those) order(s). In an alternative embodiment, a user's desire to buy or sell a security and / or a need for rebalancing a user's portfolio can generate transaction(s). As a result, the system will generate a buy / sell list (including recommended alternatives) from which a user can select.

Description

CROSS-REFERENCE TO RELATED APPLICATIONS [0001] This application is a continuation of U.S. patent application Ser. No. 09 / 696,762, filed on Oct. 25, 2000, and claims priority to U.S. Provisional Application No. 60 / 161,258, filed on Oct. 25, 1999, entitled “Investment Advice System,” incorporated herein by reference in its entirety.COPYRIGHT NOTICE [0002] Contained herein is material that is subject to copyright protection. The copyright owner has no objection to the facsimile reproduction of the patent disclosure by any person as it appears in the Patent and Trademark Office patent files or records, but otherwise reserves all rights to the copyright whatsoever. BACKGROUND [0003] This invention relates generally to the field of investment advice systems and more specifically to investment advice systems and methods that allow a user to receive advice over a network, e.g., the Internet. [0004] In the past few years, the retail brokers and financial analyst industries have developed a n...

AI Technical Summary

Benefits of technology

"The present invention provides a system and method for providing investment advice to clients through a computer network. The system includes a server computer with a database of portfolio information for securities portfolios and a user interface for accessing and managing the portfolios. The system can provide advice based on the client's risk tolerance and the performance of securities in their portfolio. The system can also suggest securities transactions based on the advice and the client's preferences. The invention allows for the creation of a portfolio tracker to track the client's portfolio information and establish a benchmark for the portfolio. The system also includes a broker connection for executing securities transactions with a plurality of brokers. Overall, the invention provides a more efficient and effective way for clients to receive investment advice and manage their securities portfolios."

Problems solved by technology

However, these financial advice systems typically are limited in several ways.

The reports rarely suggest alternatives or offer different options.

Further, the electronic systems deliver the reports in prose, which requires time. to read and comprehend.

In other words, current electronic security research reports have drawbacks in the information they supply and in their method of delivery of information.

The electronic systems typically do not customize the information they provide in that the provided information does not take into consideration a user's existing portfolio or how a user's portfolio compares to various market measures in terms of risk and reward.

These electronic systems do not inform a user how a proposed transaction will impact the user's portfolio in terms of metrics that characterize the user's portfolio.

Furthermore, such information is not provided when the user is deciding whether to go forward with a transaction, nor is it delivered in an immediately comprehensible form.

Further, many of these systems are not accessible by many users.

In other words, there are at least the following three drawbacks to existing financial advice systems: 1) only a fraction of investors are receiving investment advice; 2) those currently receiving investment advice receive advice that is incomplete, inconsistent and / or not timely; and 3) mutual funds and broker / planners are often not integrated into the advice system so as to increase productivity and distribution of advice.

Brokers or financial planners often know only a portion of products available and sometimes give inconsistent advice.

Further, online financial services and products tend to be security specific and do not take into account the user's portfolio or tax position as noted above.

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