(12) United States Patent
`Samson
`
`(10) Patent No.:
`(45) Date of Patent:
`
`US 8.429,051 B1
`Apr. 23, 2013
`
`USOO84290.51B1
`
`(54) INVESTMENT GUIDANCE SYSTEM WHICH
`ENABLES INDIVIDUALS TORATE AND
`SELECTASSETS BASED ON PERSONAL
`INVESTMENT PREFERENCES
`
`(76) Inventor: Robert K. Samson, New York, NY (US)
`(*) Notice:
`Subject to any disclaimer, the term of this
`patent is extended or adjusted under 35
`U.S.C. 154(b) by 3803 days.
`
`(21) Appl. No.: 09/766,277
`
`Jan. 19, 2001
`
`(22) Filed:
`(51) Int. Cl.
`(52) egion
`
`(2012.01)
`
`6,275,814 B1* 8/2001 Giansante et al. .......... TOS/36 R.
`6,338,047 B1 :
`1/2002 Wallman ..................... TOS/36 R.
`6,601,044 B1* 7/2003 Wallman ..................... TOS/36 R.
`OTHER PUBLICATIONS
`Fabozzi, Frank J. and Fabozzi, T. Dessa. “The Handbook of Fixed
`Income Securities”. Fourth Addition, 1995, pp. 90-96.
`“Financial Engines' (http://www.financiallengines.com), download
`date; Mar. s", (http
`9.
`)
`Fund Evaluator'. Fidelity Investments. (http://fidelity.exodus.
`optigrab.com), download date; Mar. 28, 2001.
`Lewis, Alan L. et al. “The Ibbotson-Sinquefield Simulation Made
`Easy.” Journal of Business, vol. 53 (1980), pp. 205-214.
`Rominger, Terry. “Investment Basics, Part I: Duration.” CNBS Mar
`ket Cast, May 1999, pp. 1-2.
`Rominger, Terry. “Investment Basics, Part II: Modified Duration.”
`CNBS Market Cast, Jun. 1999, pp. 3.
`* cited by examiner
`
`USPC - - - - - - - - - - -
`705/6 R; 705/35; 705/37: 235/379
`(58) Field of Classification Search ................ 705/36 R,
`705/37. 35. 1: 235/379
`s - a-- s us
`See application file for complete search history.
`
`(56)
`
`References Cited
`
`Primary Examiner — Daniel Felten
`(74) Attorney, Agent, or Firm — Mintz, Levin, Cohn, Ferris,
`Gl
`d P
`PC.
`ovsky and Popeo,
`ABSTRACT
`(57)
`An investment guidance system which enables individuals to
`U.S. PATENT DOCUMENTS
`rate and select assets based on personal investment prefer
`5,053,758 A 10, 1991 Cornett et al. ................ 340,712
`ences. The system comprises a method for receiving a request
`5.126,936 A * 6/1992 Champion et al.
`705.36 R.
`to rate a plurality of assets, providing two or more criteria
`5,148,365 A
`9, 1992 Dembo ......................... 364/402
`associated with the assets for a user to evaluate, receiving a
`5,220,500 A
`6, 1993 Baird et al. ................... 364,408
`relative weight of importance for the two or more criteria, and
`5,321,833. A
`6, 1994 Chang et al. .................. 395/600
`determining a rating for each asset based on the relative
`5,729,700 A * 3/1998 Melnikoff ...
`705.36 R.
`5,784,696 A
`7, 1998 Melnikoff ....
`... TOS/36
`weights assigned to the two or more criteria. The system then
`5,794, 178 A
`8, 1998 Caid et al. ......................... TO4/9
`ranks the plurality of assets based on the rated value for each
`5,799.298 A
`8/1998 Bingham et al. .................. 707/1
`asset, provides a list of the ranked assets and receives requests
`5,819,238 A 10, 1998 Fernholz. ..........
`... TOS/36
`to execute trades for the ranked assets. The assets can com
`s: A &E Mincaiacal, r 23. prise mutual funds, Stocks, bonds, and/or other investment
`5.999,918. A 12/1999 Williams et al. ................ 70.5/36
`Vehicles.
`6,021,397 A * 2/2000 Jones et al. ..
`TOS/36 R.
`6,029, 195 A
`2, 2000 Herz et al. .................... TO9,219
`
`13 Claims, 10 Drawing Sheets
`
`
`
`Guidance
`Server
`
`Participant
`Data
`
`
`
`
`
`
`
`
`
`Transaction
`Server
`
`
`
`
`
`110
`
`Broadcast
`
`11
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`U.S. Patent
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`Apr. 23, 2013
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`Sheet 1 of 10
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`US 8,429,051 B1
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`Investment Guidance System 100
`
`
`
`Guidance
`Server
`
`Participant
`Data
`
`
`
`
`
`
`
`Transaction
`Server
`
`10
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`Broadcast
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`1
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`
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`F.G. 1
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`U.S. Patent
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`Apr. 23, 2013
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`Sheet 2 of 10
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`US 8,429,051 B1
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`Encryption
`Proce SSO 23
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`User
`Interface 240
`
`Communication
`Device 260
`
`
`
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`Large Capacity
`Storage Device
`270
`
`FG. 2
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`U.S. Patent
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`Apr. 23, 2013
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`Sheet 3 of 10
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`US 8,429,051 B1
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`
`
`Guidance Server
`
`User's Personal
`And Financial Data
`310
`
`Retirement Goal
`Forecaster
`
`320
`
`Mutual Fund
`Selector
`
`330
`
`Monitoring
`Process
`
`FIG. 3
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`U.S. Patent
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`Apr. 23, 2013
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`Sheet 4 of 10
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`US 8,429,051 B1
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`#7 “DIH
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`35
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`U.S. Patent
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`Apr. 23, 2013
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`Sheet 5 of 10
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`US 8,429,051 B1
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`U.S. Patent
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`Apr. 23, 2013
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`Sheet 6 of 10
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`US 8,429,051 B1
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`
`
`Prioritize Large Cap Funds
`
`5 years or more
`
`S2500 or less y
`y
`a year or more Y
`
`Unimportant
`
`Important
`
`FUND FILTER 610
`
`Minimum Initial Purchase
`
`Manager Tenure
`
`Minimum History
`
`FUND PREFERENCES 610
`
`Tax Efficiency
`Consistent Returns
`
`Stock/Bond Picking Ability
`
`Low Risk
`Consistent Investment Style
`
`Low Fees
`
`640
`
`Unimportant
`
`Important
`
`F.G. 6
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`U.S. Patent
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`Apr. 23, 2013
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`Sheet 7 of 10
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`US 8,429,051 Bl
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`U.S. Patent
`
`Apr. 23, 2013
`
`Sheet 8 of 10
`
`US 8,429,051 B1
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`MUTUAL FUND SELECTOR 330
`
`
`
`Select Asset Class
`800
`
`Evaluate Current Asset
`Allocation Against
`Optimized Mix 810
`
`Review and Set Fund
`Characteristic Preferences
`820
`
`System
`Ranks Funds
`
`830
`
`Select Appropriate Mutual
`Funds to Buy or Sell
`84
`
`System Executes Mutual
`Fund Trades
`850
`
`System Reallocates Asset
`Distribution in Portfolio
`860
`
`FIG. 8
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`U.S. Patent
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`Apr. 23, 2013
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`Sheet 9 of 10
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`US 8,429,051 B1
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`U.S. Patent
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`Apr. 23, 2013
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`Sheet 10 of 10
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`US 8,429,051 B1
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`Normal vs. Lognormal Distributions
`
`--
`
`s
`
`^s
`
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`- - - - Lognormal, 912
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`
`Lognormal Distribution: Different Time Horizons
`
`
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`
`are 3 Yr Horizon, 914
`
`---
`
`- - - -5 Yr Horizon, 916 -
`- 10 Yr Horizon, 918
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`US 8,429,051 B1
`
`1.
`INVESTMENT GUIDANCE SYSTEMWHCH
`ENABLES INDIVIDUALS TO RATE AND
`SELECTASSETS BASED ON PERSONAL
`INVESTMENT PREFERENCES
`
`2
`specified criteria. Once the universe of available funds is
`adequately reduced, the investor sorts the remaining funds
`one criteria at a time, and makes a subjective evaluation of the
`funds which meet all of the defined criteria.
`
`FIELD OF THE INVENTION
`
`SUMMARY OF THE INVENTION
`
`The invention is directed to a system and method for pro
`viding investment guidance and, more particularly, to a sys
`tem for facilitating the selection of investment options such as
`mutual funds.
`
`10
`
`BACKGROUND OF THE INVENTION
`
`15
`
`With the advent of employee directed contribution plans
`Such as 401(k) programs during the 1980s, many investors
`have ultimately become responsible for managing their own
`retirement investments. However, most individuals do not
`have the proper financial understanding to make well-in
`formed investment decisions. Technical analysis of invest
`ments involves a thorough understanding of probability, sta
`tistics and risk assessment techniques. Furthermore, the types
`of retirement accounts (401(k), IRA, Roth IRA, etc.) and the
`possible investment options are continuously increasing in
`number, diversity and complexity. For example, while many
`investors today are very familiar with the concept of investing
`in a mutual fund as an ostensibly simple way to invest, there
`are now over 10,000 mutual funds to choose from.
`Personal retirement assets currently exceed $4.5 trillion
`and are expected to reach nearly S9 trillion by 2004. There
`fore, seeking to capitalize on the apparently vast market
`opportunity, many financial and software companies have
`developed investment software to assist individuals in evalu
`ating their assets and in planning for retirement. Most invest
`ment Software packages and applications found on the Inter
`net provide the investor with asset allocation suggestions. The
`investor then determines the actual combination of financial
`products that satisfy the Suggested allocation. Additionally,
`Some programs employ “retirement calculators' to determine
`the probability of achieving a retirement income goal based
`on an anticipated retirement age, a savings amount, a desir
`able investment risk, and an asset allocation. In determining
`the probability of achieving a retirement income goal, these
`prior art retirement calculators essentially forecast the inves
`tors accumulated wealth as of the date at retirement. There
`after, the calculators convert this lump sum amount to a fixed
`annuity which is purchased at the time of retirement.
`Furthermore, some investment programs then create an
`optimized portfolio, comprised of the available financial
`products, that satisfies the investor's retirement goals and
`investment style. In analyzing the investor's goals and current
`investments, the prior art systems define a retirement invest
`ment strategy, determine a target asset mix, and identify a
`model portfolio for the user to implement.
`Since most retirement assets are invested in mutual funds
`and since a vast amount of individuals prefer investing in
`mutual funds, a number of mutual funds selector programs
`are available in the prior art. Such mutual fund selection tools
`available in the prior art are designed to assist individuals in
`selecting mutual funds that meet certain criteria, Such as,
`investment type, fund performance, fund ratings, fund risk,
`and fund loads. Typical mutual fund selectors allow individu
`als to eliminate mutual funds which do not meet a certain
`stated criteria. Specifically, based on the investor's under
`standing of the various statistical criteria, the investor sets
`thresholds, and the system filters the available universe of
`mutual funds eliminating those funds which do not meet the
`
`25
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`30
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`35
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`40
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`45
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`50
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`55
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`60
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`65
`
`In one aspect, the invention features an investment guid
`ance system which enables individuals to rate and select
`assets based on personal investment preferences. The system
`comprises a method for receiving a request to rate a plurality
`of assets, providing two or more criteria associated with the
`assets for a user to evaluate, receiving a relative weight of
`importance for the two or more criteria, and determining a
`rating for each asset based on the relative weights assigned to
`the two or more criteria. The system then ranks the plurality of
`assets based on the rated value for each asset, provides a list
`of the ranked assets and receives requests to execute trades for
`the ranked assets. The assets can comprise mutual funds,
`stocks, bonds, and/or other investment vehicles.
`In one embodiment, the criteria associated with the assets
`under evaluation include tax efficiency, consistent returns,
`stock/bond picking ability, low risk, consistent investment
`style, and low fees.
`In a further embodiment, the system provides an input
`mechanism for receiving the relative weight of importance
`for the two or more asset criteria. The input mechanisms may
`include slider bars, text boxes, or other graphical input
`mechanisms.
`In another aspect, the invention features an investment
`guidance system which provides financial planning assis
`tance. The system comprises a method for receiving a finan
`cial goal from a user and receiving input decisions upon
`which the probability of achieving the financial goal is depen
`dent, wherein one of the input decisions includes selecting an
`asset allocation based on investment risk. The system further
`comprises a method for determining the probability of
`achieving a financial goal and receiving an indication that the
`user has selected a target asset allocation investment plan in
`order to achieve the financial goal. Thereafter, the system
`receives a request to rate a plurality of assets within a selected
`asset class, provides criteria associated with the assets for a
`user to evaluate, and receives a relative weight of importance
`for each criteria based on the user's personal investment
`preferences. The system also determines a rating for each
`asset based on the relative weights assigned to the criteria and
`then ranks the plurality of assets based on the rating. There
`after, the system receives a request to execute a trade for one
`or more of the ranked assets in order to fulfill the target asset
`allocation investment plan and executes the trade for one or
`more of the selected ranked assets.
`In yet another aspect, the investment guidance system com
`prises a method for reallocating the asset allocation in a user's
`portfolio based on executed trades. Furthermore, the system
`also receives additional requests to execute trades for one or
`more of the ranked assets in order to fulfill the target asset
`allocation investment plan.
`Additionally, through a monitoring system, the investment
`guidance system evaluates the target asset allocation invest
`ment plan against one or more financial goals and alerts the
`user if progress towards one or more of the financial goals
`deviates substantially.
`In a preferred embodiment, the financial goal is a retire
`ment income goal, and the input decisions which effect the
`probability of achieving the retirement income goal include,
`a 401(k) contribution rate, a taxable savings rate, the income
`required at retirement, and the anticipated retirement age.
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`US 8,429,051 B1
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`3
`In yet another aspect, determining the probability of
`achieving the financial goal involves utilizing a parametric
`lognormal model which incorporates a total time horizon.
`The total time horizon is the sum of the independently calcu
`lated time weighted horizons for the period of cash inflows
`and the period of cash outflows.
`In yet another aspect, the invention features an investment
`guidance system which rates assets for Internet users. The
`system features a memory for storing asset information, a
`processor connected to the memory, a transmitter connected
`to the processor to enable the processor to transmit informa
`tion to a user system by means of the Internet, and a receiver
`connected to the processor to allow the processor to receive
`information from the user system by means of the Internet.
`The processor receives a request to rate a plurality of assets,
`transmits criteria associated with the assets for a user to
`evaluate, and receives in connection with user processors, a
`relative weight of importance for each criteria based on the
`user's personal investment preferences. The processor also
`determines a rating for each asset based on the relative
`weights assigned to each criteria, ranks the plurality of assets
`based on the rating and provides a list of the ranked assets.
`In yet another aspect, the invention features an investment
`guidance system for providing financial planning assistance
`to Internet users. The system features a memory for storing
`asset information, a processor connected to the memory, a
`transmitter connected to the processor to enable the processor
`to transmit information to a user system by means of the
`Internet, and a receiver connected to the processor to allow
`the processor to receive information from the user system by
`means of the Internet. The processor receives a financial goal
`from a user and also receives one or more input decisions
`upon which the probability of achieving the financial goal is
`dependent, wherein one of the input decisions includes select
`ing an asset allocation based on investment risk. The proces
`sor also determines the probability of achieving the financial
`goal and receives an indication that the user has selected a
`target asset allocation investment plan in order to achieve the
`financial goal.
`Thereafter, the processor receives a request to rate a plu
`rality of assets within a selected asset class, provides criteria
`associated with the assets for a user to evaluate, and receives
`a relative weight of importance for each criteria based on the
`user's personal investment preferences. The processor also
`determines a rating for each asset based on the relative
`45
`weights assigned to the criteria, and then ranks the plurality of
`assets based on the rating. Further, the processor receives a
`request to execute a trade for one or more of the ranked assets
`in order to fulfill a target asset allocation investment plan, and
`executes the trade for one or more of the selected ranked
`aSSetS.
`While the embodiments of the present invention will be
`described with reference to a financial guidance system and
`more specifically to a method and system for evaluating
`mutual funds based on personal investment preferences, the
`method and apparatus described herein are equally applicable
`to the evaluation and ranking of other types of data, financial
`or non-financial (e.g., Such as wine characteristics used to
`rank wine) based on personal preferences.
`
`4
`FIG. 3 illustrates an exemplary guidance server of the
`system shown in FIG. 1;
`FIG. 4 illustrates a retirement goal forecaster Summary
`screen according to one embodiment of the present invention;
`FIG. 5 illustrates a mutual fund selector summary screen
`according to one embodiment of the present invention;
`FIG. 6 depicts a screen used to specify mutual fund char
`acteristics;
`FIGS. 7A and 7B illustrate two views of an exemplary fund
`rank table according to one embodiment of the present inven
`tion; and
`FIG. 8 is a flow diagram illustrating a process of selecting
`mutual funds for a target asset allocation based on personal
`investment preferences.
`FIGS.9A,9B, and 9C illustrate figures associated with the
`goal forecaster methodology including the expected returns
`and Standard deviations for nine model portfolios, the normal
`Versus lognormal distributions for exemplary portfolio num
`ber 7, and the lognormal distributions for portfolio seven over
`various time horizons.
`
`DETAILED DESCRIPTION OF THE PREFERRED
`EMBODIMENTS
`
`Overall System
`
`FIG. 1 illustrates the system architecture of the investment
`guidance system 100 which enables investors to determine
`long-term financial goals, select an optimized asset mix,
`select mutual funds from a pre-set universe based on personal
`investment preferences, execute mutual fund trades, receive
`information alerts when needed and evaluate and adjust
`investments on an ongoing basis. The system facilitates the
`selection of mutual funds by allowing the investor to apply
`relative weights of importance to mutual fund criteria rather
`than requiring the investor to set fixed statistical thresholds.
`The system then sorts the available funds taking into account
`all of the weighted mutual fund criteria and presents the user
`with a set of ranked funds. According to the embodiment
`depicted in FIG. 1, the investment guidance system 100
`includes a guidance server 120, a transaction server 110, a
`broadcast server 115, a participant data server 125, and a user
`system 130.
`The guidance server 120 is the primary provider of invest
`ment planning assistance to users, and is the central database
`repository for storing user profile and investment data. In this
`manner, ongoing investment monitoring may be performed
`and alerts may be triggered. The guidance server 120 and its
`function will be described in further detail below, in connec
`tion with FIG. 3.
`Users may include 401(k) participants, retirement plan
`participants, and retail users of financial service providers.
`The user system 130 may employ a general-purpose com
`puter for communicating with the guidance server 120. In one
`embodiment, the general purpose computer of the user sys
`tem is comprised of a processing unit, a modem, memory
`means, and any software required to communicate with the
`guidance server.
`In a further embodiment, the user system 130 may interact
`with and receive feedback from the investment guidance sys
`tem 100 using a financial provider's software which may be
`running within a browser application. The financial provider
`software communicates with the guidance server 120 which
`acts as a HTTP server. In this embodiment, the investment
`guidance system 100 increases online traffic and encourages
`return visits to the financial providers website.
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`BRIEF DESCRIPTION OF DRAWINGS
`
`FIG. 1 is a block diagram illustrating a system in accor
`dance with one embodiment of the invention;
`FIG. 2 is a block diagram showing further details of an
`exemplary system that can be used as one or more of the
`components shown in FIG. 1;
`
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`The transaction server 110 may be located at the site of a
`brokerage firm, wherein it accepts and executes securities
`transactions which are initiated by the user and transmitted
`via the guidance server 120. The transaction server 110 may
`also communicate with various stock exchange servers to
`effect such transactions. As will be apparent to those skilled in
`the art, there are a number of ways that trades can be trans
`mitted electronically for execution in a securities, commodi
`ties, or other exchanges.
`The broadcast server 115 is a database server. Accordingly,
`it runs an instance of a Relational Database Management
`System (RDBMS), such as Microsoft SQL-Server TM,
`OracleTM or the like. The broadcast server 115 provides
`access to all fund information and analytical data. The data is
`received from Vendors at a predetermined time interval, usu
`ally on a monthly basis. The broadcast server 115 can also
`convert the data obtained from data vendors from the specific
`vendor's format into a standard format that can be used
`throughout the investment guidance system.
`The participant data server 125, which is a component of
`the partnering financial provider's system, may store user
`data which is then transmitted to the guidance server 120. If
`the financial provider manages the user's 401(k) account
`and/or personal investment accounts then the participant data
`server 125 contains the user's personal and financial infor
`mation. Users may communicate directly with the guidance
`server 120 in order to provide their personal and financial
`information or the users may contact the partnering financial
`provider who will then transmit user information stored in the
`participant data server 125 to the guidance server 120. In a
`further embodiment, the guidance server 120 can automati
`cally retrieve user information from the participant data
`server 125 based on a user's request. In addition to personal
`information, user assets and IRA rollovers are usually stored
`in the participant data server 125.
`In utilizing the investment guidance system 100, the finan
`cial provider can guide users through the investment process,
`including assisting with mutual fund selection, while avoid
`ing specific recommendations and fiduciary issues associated
`with giving “advice.” The guidance server 120 provides a
`vehicle for the financial provider to enhance customer rela
`tions, increase assets under management and improve
`account retention.
`An Exemplary Computer System
`FIG. 2 depicts an example computer system capable of
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`carrying out the functionality of the investment guidance
`system in FIG. 1. The computer system may represent an
`exemplary user system or any one of the plurality of servers
`referenced in FIG.1. The system includes a central process
`ing unit (“CPU”) 250, read-only memory (“ROM) 210, ran
`dom access memory (“RAM) 220, an encryption processor
`230, a communication device 260, user interface 240 and a
`large capacity storage device 270. The large capacity storage
`device 270 may include hard disk magnetic or optical storage
`units, as well as CD-ROM drives or flash memory.
`The CPU 250 executes program code stored in one or more
`of the ROM 210, RAM 220 and/or large capacity storage
`device 270 according to conventional data processing tech
`niques to carry out the functions and acts described in con
`nection with the investment guidance system. The CPU 250
`preferably comprises at least one high-speed digital data pro
`cessor adequate to execute program modules for determining
`the probability of reaching a financial goal, developing a
`retirement and investment plan and evaluating mutual fund
`selection criteria. The CPU 250 may be embodied as a single
`commercially available processor or as a number of proces
`sors operating in parallel.
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`CPU 250 comprises, in one embodiment, a microprocessor
`such as an Intel(R) Pentium Processor, which is electronically
`coupled to each of the central controller's other elements
`(e.g., RAM 220, ROM 210, etc.).
`The ROM 210 and/or storage device are operable to store
`one or more instructions, while the CPU 250 is operable to
`retrieve, interpret and execute those instructions. In one
`embodiment, the CPU 250 includes a control unit, an arith
`metic logic unit (ALU) and a CPU local memory storage
`device. The control unit is able to retrieve instructions from
`the data storage device or ROM 250 while the ALU is able to
`perform operations needed to carry out instructions. The CPU
`local memory storage device is capable of providing high
`speed storage used for storing temporary results and control
`information.
`The encryption processor 230 facilitates the public and
`private key interchange for all secured transactions between
`all elements of the investment guidance system. The private
`nature of the information that is electronically transferred
`between guidance server 120, transaction server 110, broad
`cast server 115, participant data server 125 and the user sys
`tem 130 indicates that secure platforms are preferable to
`guarantee the privacy of the information for all entities
`involved.
`Secure platforms may be established between all elements
`of the investment guidance system through an encrypted pipe
`or a dedicated encrypted line. In a further embodiment, the
`encryption process may be demonstrated in a way where a
`Certification Authority, such as VeriSign, first issues Server
`IDs, or digital certificates to credible organizations. All orga
`nizations must complete a thorough background check to
`ensure the organization is what it claims to be (and is not
`claiming a false identity) before receiving a server ID.
`Based on Secure Sockets Layer (SSL) technology, a secure
`communication channel is established between the guidance
`server 120 and the user system 130 as well as between the
`guidance server 120 and the transaction server 110, the broad
`cast server 115, and the participant data server 125. In one
`embodiment, SSL encrypts all traffic between the guidance
`server 120 and user system 130, using a unique session key.
`To securely transmit the session key to a user system 130, the
`guidance server 120 encrypts it with the assigned public key.
`Each session key is used only once, during a single session
`with a single user. These layers of privacy protection ensure
`that information cannot be viewed if intercepted by unautho
`rized parties.
`When a message is sent electronically, the sending and
`receiving computers each generate a code based on the con
`tents of the message. If even a single character in the message
`contentis altered during transmission, the receiving computer
`will generate a different code, and then alert the recipient that
`the message is not legitimate. All pages that require secure
`transactions are Switched to a Secure Sockets Layer.
`A communication device 260 comprises devices for allow
`ing communication between the servers and the user system
`as well as communication between the guidance server 120
`and the financial provider. Communication is preferably elec
`tronic by means of the Internet. The communication device
`260 may include a conventional high speed modem, a net
`work interface card, or other well known interface devices,
`Such as those used for coupling to an Ethernet, token ring, or
`other types of networks. In this manner, the computer system
`may be coupled to a number of servers via a conventional
`network infrastructure. Such as the Internet and/or a compa
`ny's Intranet. In one embodiment, the communication device
`260 comprises a receiver to receive requests from the Internet
`and a transmitter to transmit information to the Internet.
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`IPR2020-01288
`Sony EX1030 Page 14
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`US 8,429,051 B1
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`A user interface 240 can comprise a display device, such as
`a cathode ray tube (CRT) or a liquid crystal display (LCD), for
`displaying information to a computer user. For example,
`graphical illustrations of current and “target asset alloca
`tions, charts illustrating lifetime wealth forecasts and risk
`assessment, and other data may be presented to the user on the
`display device. Additionally, user interface 240 also com
`prises an alphanumeric input device and a cursor control,
`Such as a mouse, a trackball, or cursor direction keys for
`communicating directional information to the CPU. For pur
`poses of the preferred embodiment, it is assumed that a dis
`play is used to present information to each user, but it should
`be understood that information may be presented to the users
`using an audio signal, a Braille interface or any other Suitable
`user interface.
`An Exemplary Guidance Server
`FIG.3 illustrates an exemplary guidance server 120 and the
`elements stored and processed by the server in order to
`develop and execute a retirement and investment plan, and,
`more importantly, to provide a vehicle wherein users can rank
`and select mutual funds from a pre-set universe based on
`personal investment preferences. The elements within the
`guidance server include a user's personal and financial data
`310, a retirement goal forecaster 320, a mutual fund selector
`330, and a monitoring process 340.
`A user's personal and financial information is either
`directly inputted by the user or it is imported from a partner
`ing financial provider. The partnering financial provider may
`manage the user's 401(k) account and/or personal investment
`accounts. If the user is directly providing his/her personal and
`financial information to the guidance server, the user will be
`prompted by a series of information worksheets to enter nec
`essary data. The user's financial data will be utilized by the
`retirement goal forecaster 320, the mutual fund selector 330,
`and the monitoring process 340 modules. Financial informa
`tion the user may be asked to provide includes current age,
`gender, current wages, expected wage growth, account bal
`ances, current financial product holdings, savings rate, retire
`ment income goals, available financial products, constraints
`on fund holdings, rate of inflation, and other income sources
`Such as pension, social security benefits, oranticipated inher
`itances. Users 130 may provide information for themselves,
`their spouse or any other member of their household.
`To ensure accurate investment planning, the user must
`continuously update data that is used by the investment guid
`ance system 100 in projecting retirement goals. For example,
`if the user's household income increases or the user's
`employer adds a new mutual fund to the 401(k) program, then
`the user should update the income information and the list of
`available financial products in the user profile section.
`Additionally, the user 130 may also provide investment
`information to the guidance server 120. For each investment
`holding. Such as a 401(k) account, the user will either (a) type
`in the ticker symbol of the security they own (mutual fund or
`individual security), or (b) use a look-up feature