Financial Scoring System Using Segmented Time Horizons
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Solution Overview
Problem
Existing financial planning applications focus primarily on retirement and net worth, neglecting short-term and medium-term goals and lacking evidence-based motivation for users to take action on their personal finances.
Innovation Solution
A financial management system that provides a score and recommendations based on a defensive and offensive approach, incorporating user-specific factors and available products, with a financial score and peer comparison to increase motivation and urgency for planning.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If existing financial planning applications focus solely on retirement and net worth, then long-term financial security is improved, but user motivation and engagement deteriorate because benefits are not visible for decades
Solution Approach 1:
The patent segments financial planning into multiple time horizons (short-term, medium-term, and long-term goals) rather than focusing solely on retirement. This allows users to see tangible progress in shorter timeframes while still working toward long-term security, thereby maintaining motivation without compromising reliability of long-term planning
Solution Approach 2:
The system implements continuous feedback mechanisms through scorecards and progress tracking that show users their financial health in real-time. This immediate feedback loop creates motivation by making progress visible, while still incorporating long-term retirement projections to maintain focus on future security
2Ease of manufacture
If existing applications provide cookie cutter advice, then ease of implementation is improved, but adaptability to individual life goals and career expectations deteriorates
Solution Approach 1:
The system dynamically adapts financial advice based on user input regarding specific life goals, career expectations, and personal circumstances. The advice engine adjusts recommendations in real-time as users update their profiles or change goals, providing customized guidance while maintaining ease of use through automated calculations
Solution Approach 2:
The patent applies different analytical approaches and recommendations tailored to specific user situations and goals. Rather than uniform advice, the system provides localized recommendations appropriate to each user's unique combination of goals, risk tolerance, and financial situation
3Reliability
If existing applications focus on minimizing expenses and optimizing investing strategies, then long-term wealth accumulation is improved, but short-term and medium-term goals are neglected
Solution Approach 1:
The system segments financial resources and strategies by time horizon, creating separate planning tracks for short-term goals (1-3 years), medium-term goals (3-10 years), and long-term retirement planning. This allows simultaneous optimization for multiple timeframes without compromising long-term wealth accumulation
Solution Approach 2:
The patent applies appropriate levels of investment optimization and expense minimization to each time horizon based on its characteristics. Short-term goals receive conservative, low-risk recommendations while long-term goals receive more aggressive growth strategies, with each receiving the appropriate degree of optimization rather than uniform application
Data Source
AI summary
The present invention is a device, system, and method for financial scoring and financial planning which provides a solution to the problem of poorly managed personal finances and provides opportunities for individuals, in general, to improve their current finances and planning for future finances. The core components of the invention are a device or system configured to receive input from users and provide scores based on individual user information and personal goals and recommendations for the user. Generally speaking, the device or system receives input from a user related to current finances and goals, the device determines a score based on the user input and provides the score along with recommendations to the user. An individual's finances are broken down and scored in two main categories (Offense and Defense) and evidence is provided on how they are doing as well as how they can improve based on the inputs provided.