Wealth management platform and method for minimizing reserve required for potential bucket shortage

Abstract

The invention provides a platform (11) for wealth management and a wealth management method (20). The wealth management employs buckets augmented by reserve replenishment gold. The invention first identifies which buckets are most susceptible to future bucket shortage, and then recalculates an equal reserve replenishment amount necessary to compensate for the future bucket shortage for each of the buckets that are most susceptible to future bucket shortage. The method considers the historical return of the bucket, the duration of the bucket, the median return, the lower limit return and the confidence level.

Description

[0001] Divisional application

[0002] This application is a divisional application of the invention patent application [CN202180098522.8] filed on June 10, 2021 and [Wealth management platform and method for minimizing reserves required for potential barrel shortages]. Technical Field

[0003] The present disclosure relates to a wealth management platform that employs a bucket investment strategy. In particular, the present disclosure relates to a wealth management platform and a computer-implemented method for minimizing the reserve replenishment funding required to offset potential bucket shortages. Background Art

[0004] There are many trade-offs in structuring the investment of a wealth management client's retirement. While cash and government bonds offer the benefit of low volatility, their average annual returns are much lower than those of equity investments and generally do not keep up with inflation. For example, while equity funds tied to the S&P 500 have an average annual return of approximately eight percent, these higher annual returns come with higher volatility year after year.

[0005] Over the long term, the higher volatility of equities is essentially averaged out. Bull markets erase the losses of bear markets. For example, in 2008, the S&P 500 fell more than 35 percent, but as of early 2021, the S&P 500 has risen more than 400 percent from its 2008 low. If equity volatility can be well managed, equities offer a number of advantages over cash and government bonds.

[0006] When constructing a wealth management plan, pay particular attention to the potential impact of the sequence of returns on volatile investments. If there is a bear market during the early years of retirement, funds for living expenses may be withdrawn from a pool of equity investments with reduced value, and the impact of this early shortfall will be compounded throughout the retirement years. Negative returns in the early years of retirement therefore create a higher risk that retirement funds may be depleted prematurely.

[0007] Bucket investment strategies are used for wealth management to take advantage of the higher returns of equity investments while mitigating the risk from potential adverse annual return sequences. Each bucket is defined by bucket portfolio data, such as bucket investment mix, bucket present value (calculated from the target start date of the wealth management plan), bucket volatility index, and bucket start date. Since there is more time to overcome market drops, the bucket investment mix in the later buckets (e.g., 15 to 30 years from someone's retirement date) may have a higher bucket volatility index. The earliest bucket has a bucket investment mix (e.g., cash or government bonds) with a lower bucket volatility index. As the bucket start date of the later bucket approaches, the funds in these later buckets can be converted from high-risk investments to low-risk investments one by one.

[0008] The strength (or effectiveness) of a bucket investment strategy depends on the assumptions used to construct the buckets. Especially as many wealth management clients are living longer, bucket strategies can be impacted by rising health care costs, inflation (making low-return investments impractical), and compulsive or willful spending (especially in the early years of retirement). Common solutions to such dangers include delaying the retirement start date, increasing the funding of each bucket, reducing retirement spending during adverse market conditions, and setting aside reserve (or emergency) funds.

[0009] With respect to reserve funds, there are questions about how to best select a reserve investment mix for reserves and how to best determine the total amount of reserves (e.g., the present value of the reserve funds at the beginning of retirement). With respect to the reserve investment mix, cash offers low volatility, but at the expense of low returns that do not compensate for inflation. Equity investments are better suited to combat inflation, but there is volatility risk. With respect to the total amount of reserves, an approximate figure for the total amount of reserves can be estimated, but there is a risk of underfunding or overfunding.

[0010] What is needed is a wealth management platform and method that is suitable for modeling the potential financial risk of each bucket (given its bucket investment mix and bucket start date) and determining the optimal total amount of reserves to compensate for this potential risk. Summary of the invention

[0011] The general embodiment of the present invention is a platform and wealth management method for wealth management that employs buckets augmented by reserve replenishment. The present invention first identifies which buckets are most susceptible to future bucket shortages, and then calculates the reserve replenishment necessary to compensate for future bucket shortages for each of the buckets most susceptible to future bucket shortages. The present invention considers the historical returns of the buckets, the duration of the buckets, the median return, the floor return, and the confidence level.

[0012] The reserve module of the platform embodiment of the present invention is configured to select a reserve profile of one or more reserve supplements funded for each guidance request, the reserve profile being defined by reserve portfolio data having a reserve investment mix. The reserve module is configured to calculate, for the reserve profile, a continuous return of the reserve profile and a continuous standard deviation of the reserve profile based on the reserve portfolio data of the reserve profile. The reserve module is also configured to calculate, for each reserve supplement funded: (1) a floor return of the reserve supplement based on the continuous return of the reserve profile, the continuous standard deviation of the reserve profile, the confidence level (ZScore) of the guidance request, and the duration (obtained) of the bucket associated with the reserve supplement; and (2) a present value reserve of the reserve supplement. The present value reserve of the reserve supplement is the present value of the future bucket shortage of the bucket associated with the reserve supplement. Each present value is calculated from the target start date using the floor return of the reserve supplement. The reserve module is configured to calculate a total reserve amount for each guidance request, the total reserve amount being equal to the sum of all one or more present value reserves of the guidance request.

[0013] The output module of the platform embodiment of the present invention is configured to output a guidance report for each guidance request, the guidance report comprising: (i) a bucket overview; and (ii) a reserve overview, which includes at least the total reserve amount.

[0014] A platform embodiment of the present invention is a wealth management platform for receiving and processing multiple guidance requests, the platform comprising: (a) a network server in data communication with a network; (b) a guidance request database in data communication with the network server, the guidance request database being configured to store each guidance request in one of multiple request records in the guidance request database; (c) a bucket module, which is configured to build multiple buckets for each guidance request; (d) a shortage module; (e) a reserve module; and (f) an output module. The network server is configured to provide a wealth management portal to receive guidance requests. Each guidance request is associated with one of a plurality of wealth management clients. Each guidance request includes: (1) biographical information and financial data from the wealth management client associated with the guidance request; and (2) a target start date. Each bucket is defined by bucket portfolio data, which includes: (1) a bucket investment blend; (2) a bucket present value, which is calculated from the target start date; (3) a bucket volatility index; and (4) a bucket start date. The plurality of buckets of each guidance request includes at least three buckets, and a bucket start date of a first bucket is a target start date.

[0015] The shortage module of the platform embodiment of the present invention is configured to determine, for each guidance request, whether to provide funding for the reserve replenishment of the bucket for each bucket of the guidance request. Funding is provided for the reserve replenishment of the bucket in the following two situations: (1) the bucket volatility index of the bucket is above a predetermined volatility threshold; and (2) the bucket start date of the bucket is less than a predetermined duration from the target start date. The shortage module of the first embodiment of the present invention is also configured to store or link to, for each guidance request: (1) the confidence level (ZScore) of the guidance request; and (2) the historical return data of the bucket investment blend associated with each bucket. The shortage module of the first embodiment of the present invention is also configured to calculate, for each reserve replenishment funded in each guidance request, for the bucket associated with the reserve replenishment: (1) the bucket's running return and the bucket's running standard deviation based on the bucket's bucket investment blend's historical return data; (2) the bucket's lower limit return calculated based on the bucket's running return, the bucket's running standard deviation, the guidance request's confidence level (ZScore) and the bucket's duration, wherein the bucket's duration is measured between the target start date and the bucket start date of the bucket; (3) the bucket's lower limit portfolio value from the bucket start date of the bucket based on the bucket's lower limit return, the bucket's bucket present value at the target start date and the bucket's duration; (4) the bucket's median return calculated based on the bucket's running return and the bucket's duration; (5) the bucket's median portfolio value from the bucket start date of the bucket based on the bucket's median return, the bucket's bucket present value at the target start date and the bucket's duration; and (6) the bucket's future bucket shortage from the bucket start date of the bucket. The future bucket shortfall for a bucket is equal to: (a) the median portfolio value of the bucket as of the bucket's bucket start date; minus (b) the floor portfolio value of the bucket as of the bucket's bucket start date.

[0016] The output module of the platform embodiment of the present invention is configured to output a guidance report for each guidance request, the guidance report comprising: (i) a bucket overview; and (ii) a reserve overview, which includes at least the total reserve amount.

[0017] The method embodiment of the present invention is a computer-implemented wealth management method for receiving and processing multiple guidance requests. The method includes: (a) maintaining the network server to communicate with the network; (b) storing each guidance request in one of the multiple request records of the guidance request database, wherein the guidance request database communicates with the network server; (c) for each guidance request, constructing multiple buckets; (d) for each guidance request, determining whether to provide funds for the reserve replenishment of the bucket for each bucket of the guidance request; (e) for each guidance request, storing or linking to the confidence level (ZScore) of the guidance request and the historical return data of the bucket investment mixture associated with each bucket; (f) for each reserve replenishment funded in each guidance request, calculating the bucket associated with the reserve replenishment; (g) ) for each guidance request, select a reserve profile of one or more reserve supplements funded, the reserve profile being defined by reserve portfolio data having a reserve investment mix; (h) for each reserve profile of the guidance request, calculate a running return of the reserve profile and a running standard deviation of the reserve profile based on the reserve portfolio data of the reserve profile; (i) for each reserve supplement funded in each guidance request, calculate the reserve supplement; (j) for each guidance request, calculate a reserve total, the reserve total being equal to the sum of all one or more present value reserves of the guidance request; and (k) for each guidance request, output a guidance report including a bucket summary and a reserve summary, the reserve summary including at least a total reserve total. The network server is configured to provide a wealth management portal to receive guidance requests. Each guidance request is associated with one of a plurality of wealth management clients. Each guidance request includes: (1) biographical information and financial data from the wealth management client associated with the guidance request; and (2) a target start date. Each bucket is defined by bucket portfolio data, which includes: (1) a bucket investment blend; (2) a bucket present value, which is calculated from a target start date; (3) a bucket volatility index; and (4) a bucket start date. The plurality of buckets in each guidance request includes at least three buckets, and the bucket start date of the first bucket is the target start date. For each bucket, the reserve replenishment fund of the bucket is funded in the following two situations: (i) the bucket volatility index of the bucket is above a predetermined volatility threshold; and (ii) the bucket start date of the bucket is less than a predetermined duration from the target start date.

[0018] In an embodiment of the method of the present invention, for each reserve replenishment funded in each guidance request, the step of calculating the bucket associated with the reserve replenishment includes calculating: (i) the bucket's continuous return and the bucket's continuous standard deviation based on the bucket's bucket investment blend historical return data (obtained); (ii) the bucket's lower limit return calculated based on the bucket's continuous return, the bucket's continuous standard deviation, the confidence level of the guidance request (ZScore) and the bucket's duration, wherein the bucket's duration is measured between the target start date and the bucket start date of the bucket; (iii) the bucket's lower limit portfolio value from the bucket start date of the bucket based on the bucket's lower limit return, the bucket's bucket present value at the target start date and the bucket's duration (obtained); (iv) the bucket's median return calculated based on the bucket's continuous return and the bucket's duration; (v) the bucket's median portfolio value from the bucket start date of the bucket based on the bucket's median return, the bucket's bucket present value at the target start date and the bucket's duration (obtained); and (vi) the bucket's future bucket shortage from the bucket start date of the bucket. The future bucket shortfall for a bucket is equal to: (a) the median portfolio value of the bucket as of the bucket's bucket start date; minus (b) the floor portfolio value of the bucket as of the bucket's bucket start date.

[0019] In an embodiment of the method of the present invention, for each reserve supplement funded in each guidance request, the step of calculating the reserve supplement includes calculating: (i) a floor return of the reserve supplement based on the continuous return of the reserve profile, the continuous standard deviation of the reserve profile, the confidence level of the guidance request (ZScore), and the duration of the bucket associated with the reserve supplement (obtained); and (ii) a present value reserve of the reserve supplement. The present value reserve of the reserve supplement is the present value of future bucket shortages of the bucket associated with the reserve supplement. Each present value is calculated from the target start date using the floor return of the reserve supplement.

[0020] Compared to the prior art, the present invention actually treats the creation of reserves as an afterthought. The present invention is driven by statistical analysis drawn from historical return data of both bucket investment blends and reserve investment blends. Only vulnerable buckets are targeted for reserve replenishment, thereby reducing the total funds required to fund the total reserve. Using confidence level parameters, the present invention avoids making useless efforts to compensate for the most unlikely long-tail events while being flexible enough to address each customer's specific risk aversion. In addition, because the same platform and method of the present invention are used to build buckets and reserves, the present invention can utilize the data and financial assumptions used to create buckets when creating reserves. In this way, the present invention uses a reserve investment blend that fights inflation to further increase the reliability of stable retirement income for a series of potential bad return risks. BRIEF DESCRIPTION OF THE DRAWINGS

[0021] The embodiments disclosed herein are described with reference to the following figure:

[0022] Figure 1 It is a schematic diagram showing the modules of a wealth management platform in a wealth management system in one embodiment of the present invention.

[0023] Figure 2 A flowchart showing a computer-implemented wealth management method in one embodiment of the present invention.

[0024] Figure 3 A flowchart describing the sub-steps for determining whether a specific bucket needs reserve replenishment funds in one embodiment of the present invention.

[0025] Figure 4 The flowchart is for describing the sub-steps for calculating the future barrel shortage of each barrel requiring reserve replenishment funds in one embodiment of the present invention.

[0026] Figure 5 The flowchart is a flowchart describing the sub-steps for determining the present value of future barrel shortages for each barrel requiring reserve replenishment funds in one embodiment of the present invention.

[0027] Figure 6 This is an example analysis of whether each specific bucket in an embodiment of the present invention needs reserve replenishment funds.

[0028] Figures 7 to 10 The equations used in various embodiments of the present invention are listed.

[0029] Fig.11 A diagram illustrating example bucket and reserve replenishment calculations in accordance with an embodiment of the present invention.

[0030] Fig.12 A graph depicting example buckets and reserve replenishment values ​​over the duration of a wealth management client's retirement in accordance with an embodiment of the present invention. DETAILED DESCRIPTION

[0031] In the following detailed description, reference is made to the accompanying drawings forming a part thereof. The illustrative embodiments described in the embodiments, drawings and claims are not meant to be limiting. Other embodiments may be utilized and other changes may be made without departing from the spirit or scope of the subject matter presented herein. Unless otherwise specified, the terms "comprising / comprise", "including / include" and grammatical variants thereof used herein are intended to represent "open" or "inclusive" language so that it includes the described components and also permits the inclusion of additional undescribed components. As used herein, the platform may reside in a single stand-alone computer, a server, multiple dedicated servers, a cloud-based service, and / or a virtual server running on a larger server network. As used herein, a database may store data to and access data from the following: a single stand-alone computer, a data server, multiple dedicated data servers, a cloud-based service, and / or a virtual server running on a larger server network.

[0032] Figure 1 1 is a module diagram of a wealth management platform 11 in a wealth management system 10 in one embodiment of the present invention. The platform 11 includes a network server 11A, a guidance request database 11B, a bucket module 11C, a shortage module 11D, a reserve module 11E, and an output module 11F that communicate with a network 12C. The external platform 12 of the system 10 includes a network 12C, a wealth management portal 12A implemented via a web page displayed on a laptop computer, and a historical return database 12B. As depicted, the platform 11 communicates data with the wealth management portal 12A and the historical return database 12B. In other embodiments of the present invention, the historical return database 12B can be integrated into the platform 11. Although depicted as a laptop computer, the wealth management portal 12A can also be implemented using an API interface of one or more online customer investment accounts. In addition to a laptop or desktop computer that displays a web page, the wealth management portal 12A can also be implemented as an application running on a smartphone or tablet computer.

[0033] Figure 2The flowchart is a computer-implemented wealth management method 20 in one embodiment of the present invention. The data input of the flowchart is a plurality of guidance requests 21 and data stored in the historical return database 12B. Each guidance request 21 includes biographical information 21A and financial data 21B. This data is used to construct the buckets (i.e., buckets) in step 1-01 (this step is the prior art). The embodiment of the present invention adds the following steps: in step 1-02, determine which buckets need to create reserve replenishment funds for each bucket; in step 1-03, calculate the future bucket shortfalls (i.e., future bucket shortfalls) of each bucket at a confidence level; in step 1-04, determine (or determine) the present value (i.e., present value) of each future bucket shortfall; and in step 1-05, sum the present value of the shortfall of each bucket to calculate the total reserve. Steps 1-03 to 1-05 are only executed for buckets that meet the decision step 1-02 (see step 1-02 for details). Figure 3 ).

[0034] Figure 3 A flowchart describing the sub-steps for determining whether each bucket requires reserve replenishment in one embodiment of the present invention (e.g., step 1-02). The first yes / no question 1-02A is whether the bucket volatility index is above the volatility threshold. The second yes / no question 1-02B is whether the bucket start date is less than "Y" years from the target start date. Although in this Figure 3 Years are used for simplicity, but time can also be measured in calendar days or months. Steps 1-03 to 1-05 (see Figures 4 to 5 ) is executed only for buckets that satisfy decision steps 1-02.

[0035] Figure 4 A flowchart for describing the sub-steps (e.g., step 1-03) for calculating the future bucket shortage of each bucket that requires reserve replenishment in one embodiment of the present invention. Step 1-03A is to store or link to the confidence level and historical return data for each bucket. Step 1-03B is to calculate the continuous return and continuous standard deviation for each bucket. Step 1-03C is to calculate the lower limit return and median return at the confidence level for each bucket. Step 1-03D is to calculate the lower limit portfolio value and median portfolio value for each bucket from the start date of the bucket. And step 1-03E is to calculate the future bucket shortage of each bucket that requires reserve replenishment, as calculated at the bucket start date of the bucket. It should be noted that the bucket start date is the date when funds from the bucket begin to be paid to wealth management clients; when the bucket start date approaches, high-risk investments (such as equity stocks) are typically converted into less volatile investments, such as cash or government bonds.

[0036] Figure 5A flowchart for describing the sub-steps (e.g., step 1-04) for determining the present value of future barrel shortages for each barrel requiring reserve replenishment in one embodiment of the present invention. Step 1-04A includes storing or linking to reserve portfolio data of a reserve profile. Step 1-04B includes calculating a running return and a running standard deviation for the reserve profile. Step 1-04C includes calculating a lower bound return at a confidence level for each reserve replenishment. Step 1-04D includes calculating the present value of future barrel shortages using the lower bound return of the reserve profile for each reserve replenishment.

[0037] Figure 6 An example analysis of whether each bucket in an embodiment of the present invention needs reserve supplementary funds. In this example, for the years 2021 to 2046+, there are six buckets numbered as bucket-1 to bucket-6. Under step 1-02 (e.g., whether to create reserve supplementary funds for each bucket), the two decisions of step 1-02A and step 1-02B are answered as "yes" for bucket-2 and bucket-3, because the two buckets are for venture capital, and the bucket start date of the two buckets is less than 15 years from the target start date (e.g., in this example, "Y" is equal to 15 years). Bucket-1 does not need reserve supplementary funds because it is cash with a low volatility index. Bucket-4, bucket-5, and bucket-6 do not need reserve supplementary funds because these buckets all have bucket start dates greater than 15 years from the target start date. The bucket start dates of bucket-2 and bucket-3 are at the beginning of the year 2026 and the year 2031, respectively. In this example, the target start date is the bucket start date of bucket-1 (starting from the year 2021).

[0038] Figure 7 The equations used in various embodiments of the present invention are listed. Figure 7 Equation-1A and Equation-1B including running returns and running standard deviations. As discussed in more detail below, the two equations will be used twice in the present invention: (i) first, which is related to the calculation of historical return data for each bucket based on the bucket investment blend of the bucket; and (ii) second time, which is related to the calculation of the reserve profile based on the reserve investment blend of the reserve profile. It should be noted that each bucket can have a different bucket investment blend, and therefore a different running return and a different running standard deviation. Likewise, a reserve profile can have a different reserve investment blend than the bucket investment blend of any bucket, and therefore a different running return and a different running standard deviation.

[0039] Figure 8 The equations used in various embodiments of the present invention are listed. Figure 8Equation-2A, Equation-2B, and Equation-2C for standard deviation, floor return, and median return for TAV are included. As discussed in more detail below, these equations are used twice in the present invention: (i) first, which is related to the calculation of the floor return and median return for each bucket; and (ii) second, which is related to the calculation of the reserve replenishment for each bucket. It should be noted that each bucket will have a different duration, so even if it has the same bucket investment mix, there will be a different floor return and a different median return. A reserve profile can have a different reserve investment mix than the bucket investment mix of any bucket, so it has a different continuous return and a different continuous standard deviation (which can produce a different floor return between a reserve replenishment and the bucket associated with the reserve replenishment).

[0040] Fig. 9 The equations used in various embodiments of the present invention are listed. Fig. 9 Equation-3A and Equation-3B include the floor portfolio value and the median portfolio value (as of the bucket start date) for each bucket. The values ​​calculated for each bucket will most likely be different because each bucket has a different duration and therefore will most likely have a different bucket present value and possibly a different bucket investment mix.

[0041] Fig.10 The equations used in various embodiments of the present invention are listed. Fig.10 Included are equations 4 and 5 for future barrel shortages and the present value of future barrel shortages, respectively. Equation 4 is a simple subtraction. Equation 5 is a present value calculation considering the lower bound return, duration, and future barrel shortages. The lower bound return is the lower bound return of the reserve profile. The calculated present value is the present value reserve of the reserve replenishment associated with the barrel.

[0042] Fig.11 11-00 is a table that details the calculation of the example bucket and reserve replenishment fund in one embodiment of the present invention. The calculation results of bucket-1 to bucket-6 are listed in Table 11-00. In this example, Figure 6 Similarly, Bucket-2 and Bucket-3 have reserve replenishment. Note that the future bucket shortages in Exhibit 11-00 are larger numbers than their present values ​​(present value reserves) because they are calculated from the bucket start date (after several years of compounding returns). The sum of each present value return is the total reserve amount (e.g., the total amount of funds required to fund the reserves from the target start date). The total funding is the sum of each bucket from the target start date and the total reserve amount.

[0043] Fig.12 A graph depicting example buckets and reserve replenishment values ​​over the duration of a wealth management client's retirement in one embodiment of the present invention Fig.12 -00. As the curve Fig.12-00, each bucket is extracted (or withdrawn) in its time window starting from the bucket start date of the bucket to provide funds for the living expenses of the wealth management client. Except for bucket-1 as cash, the present value of the bucket (e.g., the initial funding of the bucket from the target start date) grows due to compound interest in several years before it is withdrawn. The last bucket (bucket-6) grows to the maximum value because it remains untouched for 25 years before withdrawal. The reserve grows over time from its initial reserve total funding at the target start date, accompanied by compound returns over time. Due to the client's asset attribution, the graphic line of bucket-6 has a small rise at about 62 years old. If the reserve is taken away, the graphic line of the reserve will show a downward slope after the initial growth, similar to the graphic lines of bucket-2 to bucket-5.

[0044] A general embodiment of the present invention is a platform 11 and wealth management method 20 for wealth management that employs buckets augmented by reserve supplements. The present invention first identifies which buckets are most susceptible to future bucket shortages, and then calculates the reserve supplements necessary to compensate for future bucket shortages for each of the buckets most susceptible to future bucket shortages. The present invention considers the historical returns of the buckets, the duration of the buckets, the median return, the floor return, and the confidence level.

[0045] The platform embodiment of the present invention is a wealth management platform 11 for receiving and processing multiple guidance requests 21, the platform 11 comprising: (a) a network server 11A in data communication with a network 12C; (b) a guidance request database 11B in data communication with the network server 11A, the guidance request database 11B being configured to store each guidance request 21 in one of multiple request records in the guidance request database 11B; (c) a bucket module 11C configured to build multiple buckets for each guidance request; (d) a shortage module 11D; (e) a reserve module 11E; and (f) an output module 11F. The network server 11A is configured to provide a wealth management portal 12A to receive guidance requests 21. Each guidance request 21 is associated with one of a plurality of wealth management clients. Each guidance request 21 includes: (1) biographical information 21A and financial data 21B from the wealth management client associated with the guidance request 21; and (2) a target start date. Each bucket is defined by bucket portfolio data, which includes: (1) a bucket investment blend; (2) a bucket present value, which is calculated from a target start date; (3) a bucket volatility index; and (4) a bucket start date. The plurality of buckets of each guidance request 21 includes at least three buckets, and the bucket start date of the first bucket is the target start date.

[0046] The shortage module 11D of the platform embodiment of the present invention is configured to determine whether to provide funding for the reserve replenishment of the bucket for each bucket of the guidance request 21 for each guidance request 21. Funding for the reserve replenishment of the bucket is provided in the following two cases: (1) the bucket volatility index of the bucket is higher than the predetermined volatility threshold; and (2) the bucket start date of the bucket is less than the predetermined duration from the target start date. The shortage module 11D of the first embodiment of the present invention is also configured to store or link each guidance request 21 to: (1) the confidence level (ZScore) of the guidance request 21; and (2) the historical return data (or historical return profile) of the bucket investment blend associated with each bucket. The shortage module 11D of the first embodiment of the present invention is also configured to calculate, for each reserve replenishment funded in each guidance request 21, for the bucket associated with the reserve replenishment: (1) the bucket's running return and the bucket's running standard deviation based on the bucket's bucket investment blend's historical return data; (2) the bucket's lower limit return calculated based on the bucket's running return, the bucket's running standard deviation, the confidence level (ZScore) of the guidance request 21, and the bucket's duration, wherein the bucket's duration is measured between the target start date and the bucket start date of the bucket; (3) the bucket's lower limit portfolio value from the bucket start date of the bucket based on the bucket's lower limit return, the bucket's bucket present value at the target start date, and the bucket's duration; (4) the bucket's median return calculated based on the bucket's running return and the bucket's duration; (5) the bucket's median portfolio value from the bucket start date of the bucket based on the bucket's median return, the bucket's bucket present value at the target start date, and the bucket's duration; and (6) the bucket's future bucket shortage from the bucket start date of the bucket. The future bucket shortfall for a bucket is equal to: (a) the median portfolio value of the bucket as of the bucket's bucket start date; minus (b) the floor portfolio value of the bucket as of the bucket's bucket start date.

[0047] The reserve module 11E of the platform embodiment of the present invention is configured to select a reserve profile for one or more funded one or more reserve supplements for each guidance request 21, the reserve profile being defined by reserve portfolio data having a reserve investment mix. The reserve module 11E is configured to calculate, for the reserve profile, a continuous return of the reserve profile and a continuous standard deviation of the reserve profile based on the reserve portfolio data of the reserve profile. The reserve module 11E is also configured to calculate, for each funded reserve supplement: (1) a floor return of the reserve supplement based on the continuous return of the reserve profile, the continuous standard deviation of the reserve profile, the confidence level (ZScore) of the guidance request 21, and the duration of the bucket associated with the reserve supplement; and (2) a present value reserve of the reserve supplement. The present value reserve of the reserve supplement is the present value of the future bucket shortage of the bucket associated with the reserve supplement. Each present value is calculated from the target start date using the floor return of the reserve supplement. The reserve module 11E is configured to calculate a reserve total amount for each guidance request 21 , the reserve total amount being equal to the sum of all one or more present value reserves of the guidance request 21 .

[0048] The output module 11F of the platform embodiment of the present invention is configured to output a guidance report for each guidance request 21, the guidance report including: (i) a bucket summary; and (ii) a reserve summary, which includes at least the total reserve amount.

[0049] In a first alternative embodiment of the platform embodiment, the bucket portfolio data for each bucket further includes: (i) the annual planned return of the bucket; and (ii) the annual standard deviation of the bucket. In a first alternative embodiment of the platform embodiment of the present invention, the continuous return of each bucket and the continuous standard deviation of each bucket are calculated according to the following:

[0050] and

[0051]

[0052] In addition to the elements of the first alternative embodiment of the platform embodiment, the second alternative embodiment of the platform embodiment is further defined such that: (a) the bucket portfolio data for each bucket further includes the TAV of the bucket investment blend of the bucket; and (b) for the duration of the bucket, the floor return for each bucket and the median return for each bucket are calculated according to:

[0053] and and

[0054] In addition to the elements of the first alternative embodiment and the second alternative embodiment of the platform embodiment, the third alternative embodiment of the platform embodiment is further defined such that for the duration of the buckets, the floor portfolio value at the bucket start date of each bucket and the median portfolio value at the bucket start date of each bucket are calculated according to the following equations:

[0055] Lower bound portfolio value at bucket start date

[0056] = Portfolio value at target start date × (1 + floor return) 持续时间

[0057] (Equation 3A); and

[0058] Median portfolio value at bucket start date

[0059] = Portfolio value at target start date × (1 + median return) 持续时间

[0060] (Equation-3B).

[0061] In a fourth alternative embodiment of the platform embodiment, the reserve portfolio data of the reserve profile further includes an annual planned return of the reserve profile and an annual standard deviation of the reserve profile. In addition, in a fourth alternative embodiment of the platform embodiment, the continuous return of the reserve profile and the continuous standard deviation of the reserve profile are calculated according to: and

[0062] In addition to the elements of the fourth alternative embodiment of the platform embodiment, in a fifth alternative embodiment of the platform embodiment of the present invention: (a) the reserve portfolio data of the reserve profile further includes the TAV of the reserve investment blend of the reserve profile; and (b) wherein for the duration of the bucket associated with the reserve replenishment, the floor return for each reserve replenishment funded is calculated according to:

[0063] and

[0064]

[0065] In addition to the elements of the fourth and fifth alternative embodiments of the platform embodiment, in the sixth alternative embodiment of the platform embodiment of the present invention, for each reserve replenishment funded and the duration of the bucket associated with the reserve replenishment, the present value of future bucket shortages of the bucket associated with the reserve replenishment is calculated according to the following: Present value of future bucket shortages = PV (lower bound return, duration, future bucket shortages) (Equation - 5).

[0066] The method embodiment of the present invention is a computer-implemented wealth management method 20 for receiving and processing multiple guidance requests 21. The method includes: (a) maintaining a network server 11A that communicates with a network 12C; (b) storing each guidance request in one of multiple request records in a guidance request database 11B, wherein the guidance request database 11B communicates with the network server 11A; (c) for each guidance request 21, constructing multiple buckets; (d) for each guidance request 21, determining whether to provide funding for the reserve replenishment of the bucket for each bucket of the guidance request 21; (e) for each guidance request 21, storing or linking to the confidence level (ZScore) of the guidance request 21 and the historical return data of the bucket investment mixture associated with each bucket; (f) for each reserve replenishment funded in each guidance request 21, determining whether to provide funding for the bucket reserve replenishment for each bucket of the guidance request 21; Calculate; (g) for each guidance request 21, select a reserve profile of one or more reserve supplements funded, the reserve profile being defined by reserve portfolio data having a reserve investment mix; (h) for each reserve profile of the guidance request 21, calculate a continuous return of the reserve profile and a continuous standard deviation of the reserve profile based on the reserve portfolio data of the reserve profile; (i) for each reserve supplement funded in each guidance request 21, calculate the reserve supplement; (j) for each guidance request 21, calculate a reserve total, which is equal to the sum of all one or more present value reserves of the guidance request 21; and (k) for each guidance request 21, output a guidance report including a bucket summary and a reserve summary, the reserve summary including at least a total reserve total. The network server 11A is configured to provide a wealth management portal 12A to receive the guidance request 21. Each guidance request 21 is associated with one of a plurality of wealth management clients. Each guidance request includes: (1) biographical information 21A and financial data 21B from a wealth management client associated with the guidance request 21; and (2) a target start date. Each bucket is defined by bucket portfolio data, which includes: (1) a bucket investment blend; (2) a bucket present value, which is calculated from the target start date; (3) a bucket volatility index; and (4) a bucket start date. The plurality of buckets of each guidance request 21 includes at least three buckets, and the bucket start date of the first bucket is the target start date. For each bucket, the reserve replenishment fund of the bucket is funded in the following two situations: (i) the bucket volatility index of the bucket is above a predetermined volatility threshold; and (ii) the bucket start date of the bucket is less than a predetermined duration from the target start date.

[0067] In an embodiment of the method of the present invention, for each reserve replenishment funded in each guidance request 21, the step of calculating the bucket associated with the reserve replenishment includes calculating: (i) the bucket's continuous return and the bucket's continuous standard deviation based on the bucket's bucket investment blend historical return data (obtained); (ii) the bucket's lower limit return calculated based on the bucket's continuous return, the bucket's continuous standard deviation, the confidence level (ZScore) of the guidance request 21 and the bucket's duration, wherein the bucket's duration is measured between the target start date and the bucket start date of the bucket; (iii) the bucket's lower limit portfolio value from the bucket start date of the bucket based on the bucket's lower limit return, the bucket's bucket present value at the target start date and the bucket's duration (obtained); (iv) the bucket's median return calculated based on the bucket's continuous return and the bucket's duration; (v) the bucket's median portfolio value from the bucket start date of the bucket based on the bucket's median return, the bucket's bucket present value at the target start date and the bucket's duration (obtained); and (vi) the bucket's future bucket shortage from the bucket start date of the bucket. The future bucket shortfall for a bucket is equal to: (a) the median portfolio value of the bucket as of the bucket's bucket start date; minus (b) the floor portfolio value of the bucket as of the bucket's bucket start date.

[0068] In an embodiment of the method of the present invention, for each reserve supplement funded in each guidance request 21, the step of calculating the reserve supplement includes calculating: (i) a floor return of the reserve supplement based on the continuous return of the reserve profile, the continuous standard deviation of the reserve profile, the confidence level (ZScore) of the guidance request 21, and the duration of the bucket associated with the reserve supplement (obtained); and (ii) a present value reserve of the reserve supplement. The present value reserve of the reserve supplement is the present value of future bucket shortages of the bucket associated with the reserve supplement. Each present value is calculated from the target start date using the floor return of the reserve supplement.

[0069] In a first alternative embodiment of the method embodiment, the bucket portfolio data for each bucket further includes: (i) the annual planned return of the bucket; and (ii) the annual standard deviation of the bucket. In this first alternative embodiment of the platform embodiment of the present invention, the continuous return of each bucket and the continuous standard deviation of each bucket are calculated according to:

[0070] and

[0071] In addition to the elements of the first alternative embodiment of the platform embodiment, the second alternative embodiment of the method embodiment is further defined such that: (a) the bucket portfolio data for each bucket further includes the TAV of the bucket investment pool for the bucket; and (b) the floor return for each bucket and the median return for each bucket are calculated for the duration of the bucket according to:

[0072] and and

[0073]

[0074] In addition to the elements of the first alternative embodiment and the second alternative embodiment of the platform embodiment, a third alternative embodiment of the method embodiment is further defined such that for the duration of the buckets, a floor portfolio value at the bucket start date of each bucket and a median portfolio value at the bucket start date of each bucket are calculated according to:

[0075] Lower portfolio value at bucket start date =

[0076] Portfolio value at target start date × (1 + floor return) 持续时间 (Equation 3A); and

[0077] Median portfolio value at bucket start date =

[0078] Portfolio value at target starting date × (1 + median return) 持续时间 (Equation-3B).

[0079] In a fourth alternative embodiment of the method embodiment, the reserve portfolio data of the reserve profile further includes an annual planned return of the reserve profile and an annual standard deviation of the reserve profile. In addition, in a fourth alternative embodiment of the platform embodiment, the continuous return of the reserve profile and the continuous standard deviation of the reserve profile are calculated according to:

[0080] and

[0081]

[0082] In addition to the elements of the fourth alternative embodiment of the platform embodiment, in a fifth alternative embodiment of the method embodiment of the present invention: (a) the reserve portfolio data of the reserve profile further includes the TAV of the reserve investment blend of the reserve profile; and (b) wherein for the duration of the bucket associated with the reserve replenishment, the floor return of each reserve replenishment funded is calculated according to:

[0083] and

[0084]

[0085] In addition to the elements of the fourth and fifth alternative embodiments of the platform embodiment, in a sixth alternative embodiment of the method embodiment of the present invention, for each reserve replenishment funded and the duration of the bucket associated with the reserve replenishment, the present value of the future bucket shortage of the bucket associated with the reserve replenishment is calculated according to:

[0086] Present value of future bucket shortage = PV (lower bound return, duration, future bucket shortage) (Equation-5).

[0087] Although various aspects and embodiments have been disclosed herein, various other modifications and adjustments of the present invention will be apparent to those skilled in the art after reading the foregoing disclosure without departing from the spirit and scope of the present invention, and all modifications and adjustments are within the scope of the claims of the present application. The various aspects and embodiments disclosed herein are for illustrative purposes and are not intended to be limiting, with the true scope and spirit of the present invention being indicated by the scope of the claims.

Claims

1. A wealth management platform for receiving and processing multiple guidance requests, characterized in that: The platform includes: (a) a network server that communicates data with the network, (i) wherein the network server is configured to provide a wealth management portal to receive the guidance request; (ii) wherein each guidance request is associated with one of the plurality of wealth management clients; and (iii) each request for guidance includes: (1) biographical information and financial data from the wealth management client associated with the guidance request; and (2) Target start date; (b) a guidance request database in data communication with the network server, the guidance request database being configured to store each guidance request in one of a plurality of request records in the guidance request database; (c) a bucket module configured to construct a plurality of buckets for each guidance request, (i) wherein each bucket is defined by bucket portfolio data, the bucket portfolio data comprising: (1) Bucket investment mixed gold; (2) the present value of the bucket, which is calculated from the target start date; (3) Bucket Volatility Index; and (4) the bucket start date; and (ii) wherein the plurality of buckets of each guidance request includes at least three buckets, and the bucket start date of a first bucket is the target start date; (d) a shortage module configured to, for each guidance request: (i) determining, for each bucket of the guidance request, whether to provide funding for the reserve replenishment fund of the bucket, wherein the reserve replenishment fund of the bucket is provided funding in the following two situations: (1) the bucket volatility index of the bucket is above a predetermined volatility threshold; and (2) the bucket start date of the bucket is less than a predetermined duration from the target start date; (ii) store or link to: (1) the confidence level of the guidance request (ZScore); and (2) historical return data on the investment blend associated with each bucket; and (iii) for each reserve replenishment funded, calculating for the bucket associated with that reserve replenishment: (1) a running return for the bucket and a running standard deviation for the bucket based on the historical return data for the bucket investment blend for the bucket; (2) a lower bound return for the bucket calculated based on the rolling return for the bucket, the rolling standard deviation for the bucket, the confidence level (ZScore) of the guidance request, and a duration of the bucket, wherein the duration of the bucket is measured between the target start date and the bucket start date of the bucket; (3) a floor portfolio value for the bucket as of the bucket start date for the bucket based on the floor return for the bucket, the bucket present value of the bucket at the target start date, and the duration of the bucket; (4) a median return for the bucket calculated based on the continuous returns for the bucket and the duration of the bucket; (5) a median portfolio value for the bucket as of the bucket start date for the bucket based on the median return for the bucket, the bucket present value of the bucket at the target start date, and the duration of the bucket; and (6) the future bucket shortage of the bucket as of the bucket start date for the bucket, wherein the future bucket shortage of the bucket is equal to: (a) the median portfolio value for the bucket as of the bucket start date for the bucket; minus (b) the floor portfolio value for the bucket as of the bucket start date for the bucket; (e) a reserve module configured to, for each guidance request: (i) selecting a reserve profile for one or more reserve supplements to be funded, the reserve profile being defined by reserve portfolio data having a reserve investment mix; (ii) for the reserve profile, calculating a running return of the reserve profile and a running standard deviation of the reserve profile based on the reserve portfolio data of the reserve profile; (iii) for each reserve replenishment funded, calculate: (1) a floor return for the reserve replenishment based on the rolling return for the reserve profile, the rolling standard deviation for the reserve profile, the confidence level (ZScore) of the guidance request, and the duration of the bucket associated with the reserve replenishment; and (2) the present value of the reserve supplement fund, (a) wherein the present value reserve of the reserve replenishment fund is the present value of the future bucket shortfall of the bucket associated with the reserve replenishment fund; and (b) wherein each present value is calculated from the target starting date using the floor return on the reserve replenishment; and (iv) calculating a total reserve amount, said total reserve amount being equal to the sum of all one or more present value reserves of said guidance requests; and (f) an output module configured to output a guidance report for each guidance request, wherein the guidance report includes: (i) a summary of the barrel; and (ii) a summary of the reserves, which includes at least the total amount of the reserves.

2. The platform according to claim 1, characterized in that (a) wherein the bucket portfolio data for each bucket includes: (i) the annual projected return for the bucket; and (ii) the annual standard deviation of the barrel; and (b) wherein the running return for each bucket and the running standard deviation for each bucket are calculated according to: and 3. The platform according to claim 2, characterized in that: (a) wherein the bucket portfolio data for each bucket further includes the TAV of the bucket investment blend for the bucket; and (b) wherein for the duration of the bucket, the lower bound return for each bucket and the median return for each bucket are calculated according to:

4. The platform according to claim 3, characterized in that: The floor portfolio value at the bucket start date for each bucket and the median portfolio value at the bucket start date for each bucket are calculated for the duration of the buckets according to: Lower bound portfolio value at bucket start date = Portfolio value at target start date × (1 + floor return) 持续时间 (Equation-3A); and Median portfolio value at bucket start date = Portfolio value at target start date × (1 + median return) 持续时间 (Equation-3B).

5. The platform according to claim 1, characterized in that: (a) the reserve portfolio data in the reserve profile include: (i) the projected annual return on the reserve profile; and (ii) the annual standard deviation of the reserve profile; and (b) wherein the running return of the reserve profile and the running standard deviation of the reserve profile are calculated according to: and 6. The platform according to claim 5, characterized in that (a) wherein the reserve portfolio data of the reserve profile further includes the TAV of the reserve investment pool of the reserve profile; and (b) wherein the floor return for each reserve replenishment funded is calculated for the duration of the bucket associated with the reserve replenishment according to: and 7. The platform according to claim 6, characterized in that wherein for each reserve replenishment funded and the duration of the bucket associated with the reserve replenishment, the present value of the future bucket shortfall for the bucket associated with the reserve replenishment is calculated according to: Present value of future bucket shortage = PV(lower bound return, duration, future bucket shortage) (Equation-5).

8. A computer-implemented wealth management method for receiving and processing a plurality of guidance requests, characterized in that: The method comprises: (a) maintaining data communication between the network server and the network, (i) wherein the network server is configured to provide a wealth management portal to receive the guidance request; (ii) wherein each guidance request is associated with one of the plurality of wealth management clients; and (iii) each request for guidance includes: (1) biographical information and financial data from the wealth management client associated with the guidance request; and (2) Target start date; (b) storing each guidance request in one of a plurality of request records in a guidance request database, wherein the guidance request database is in data communication with the network server; (c) For each guidance request, multiple buckets are constructed. (i) wherein each bucket is defined by bucket portfolio data, the bucket portfolio data comprising: (1) Bucket investment mixed gold; (2) the present value of the bucket, which is calculated from the target start date; (3) Bucket Volatility Index; and (4) the bucket start date; and (ii) wherein the plurality of buckets of each guidance request includes at least three buckets, and the bucket start date of a first bucket is the target start date; (d) for each guidance request, determining whether to provide funding for each bucket of the guidance request, wherein funding is provided for the reserve replenishment fund of the bucket in the following two situations: (i) the bucket volatility index of the bucket is above a predetermined volatility threshold; and (ii) the bucket start date of the bucket is less than a predetermined duration from the target start date; (e) for each request for guidance, store or link to: (i) the confidence level of the guidance request (ZScore); and (ii) historical return data on the investment blend associated with each bucket; (f) for each reserve supplement funded in each guidance request, calculate for the bucket associated with the reserve supplement: (i) a running return for the bucket and a running standard deviation for the bucket based on the historical return data for the bucket investment blend for the bucket; (ii) a floor return for the bucket calculated based on the rolling return for the bucket, the rolling standard deviation for the bucket, the confidence level (ZScore) of the guidance request, and a duration of the bucket, wherein the duration of the bucket is measured between the target start date and the bucket start date of the bucket; (iii) a floor portfolio value for the bucket as of the bucket start date for the bucket based on the floor return for the bucket, the bucket present value of the bucket at the target start date, and the duration of the bucket; (iv) a median return for the bucket calculated based on the running returns for the bucket and the duration of the bucket; (v) a median portfolio value for the bucket as of the bucket start date for the bucket based on the median return for the bucket, the bucket present value of the bucket at the target start date, and the duration of the bucket; and (vi) the future bucket shortage for the bucket as of the bucket start date for the bucket, wherein the future bucket shortage for the bucket is equal to: (1) the median portfolio value for the bucket as of the bucket start date for the bucket; minus (2) the floor portfolio value for the bucket as of the bucket start date for the bucket; (g) for each guidance request, selecting a reserve profile for the one or more reserve supplements to be funded, the reserve profile being defined by reserve portfolio data having a reserve investment mix; (h) for each of the reserve profiles for which guidance is requested, calculating a running return for the reserve profile and a running standard deviation for the reserve profile based on the reserve portfolio data for the reserve profile; (i) For each reserve replenishment funded in each guidance request, calculate: (i) a floor return for the reserve replenishment based on the rolling return for the reserve profile, the rolling standard deviation for the reserve profile, the confidence level (ZScore) for the guidance request, and the duration of the bucket associated with the reserve replenishment; and (ii) the present value of the reserve replenishment fund, (1) wherein the present value reserve of each reserve replenishment is the present value of the future bucket shortfall of the bucket associated with the reserve replenishment; and (2) wherein each present value is calculated from the target starting date using the floor return on the reserve replenishment; and (j) for each guidance request, calculating a total reserve amount, the total reserve amount being equal to the sum of all one or more present value reserves for the guidance request; and (k) outputting a guidance report for each guidance request, wherein the guidance report includes: (i) a summary of the barrel; and (ii) a summary of the reserves, which includes at least the total amount of the reserves.

9. The method according to claim 8, characterized in that (a) wherein the bucket portfolio data for each bucket includes: (i) the annual projected return for the bucket; and (ii) the annual standard deviation of the barrel; and (b) wherein the running return for each bucket and the running standard deviation for each bucket are calculated according to: and 10. The method according to claim 9, characterized in that (a) wherein the bucket portfolio data for each bucket further includes the TAV of the bucket investment blend for the bucket; and (b) wherein for the duration of the bucket, the lower bound return for each bucket and the median return for each bucket are calculated according to: and 11. The method according to claim 10, characterized in that wherein for the duration of the buckets, the floor portfolio value at the bucket start date of each bucket and the median portfolio value at the bucket start date of each bucket are calculated according to: Lower portfolio value at bucket start date = Portfolio value at target start date × (1 + floor return) 持续时间 (Equation-3A); and Median portfolio value at bucket start date = Portfolio value at target starting date × (1 + median return) 持续时间 (Equation-3B).

12. The method according to claim 8, characterized in that (a) the reserve portfolio data in the reserve profile include: (i) the projected annual return on the reserve profile; and (ii) the annual standard deviation of the reserve profile; and (b) wherein the running return of the reserve profile and the running standard deviation of the reserve profile are calculated according to: and 13. The method according to claim 12, characterized in that (a) wherein the reserve portfolio data of the reserve profile further includes the TAV of the reserve investment pool of the reserve profile; and (b) wherein the floor return for each reserve replenishment funded is calculated for the duration of the bucket associated with the reserve replenishment according to: and 14. The method according to claim 13, characterized in that wherein for each reserve replenishment funded and the duration of the bucket associated with the reserve replenishment, the present value of the future bucket shortfall for the bucket associated with the reserve replenishment is calculated according to: Present value of future bucket shortage = PV (lower bound return, duration, future bucket shortage) (Equation-5).

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