Patent ID: 7401037

Claim:
A method of managing assets for stabilizing payment amounts in a series of anticipated periodic payments over a time period using a computer having a memory, the method comprising the steps of: storing information relating to said assets and said series of anticipated periodic payments in memory; determining an initial value of said assets; defining a first pool by allocating a portion of said assets to said first pool having a first value representing an initial present value of the anticipated periodic payments; defining a second pool by allocating a portion of said assets to said second pool having a second value representing the initial value of said assets less said first value; at periodic intervals over the time period: determining a third value representing a subsequent value of the assets in said first pool; and comparing said third value to a fourth value representing a present value of the remaining anticipated periodic payments; and when said third value is less than said fourth value, reallocating a portion of said assets from said second pool to said first pool so that said first asset pool has a new value representing said fourth value; wherein: the anticipated periodic payments are paid to an annuitant; and said second pool includes assets designated for at least one beneficiary; and wherein reallocating a portion of said assets from said second pool results in a decrease in the value of said assets designated for said at least one beneficiary.