Patent ID: 8725614

Claim:
A computer-implemented method of preparing a retirement plan for implementation of an in-plan payout program, the method comprising: receiving, by one or more routines running on one or more computer systems, information regarding (i) a desired retirement age of an investor, (ii) a total value of assets held within a retirement plan of the investor and (iii) characteristics of a plurality of financial products within a limited universe of financial products available for investment within the retirement plan; and based on the information, causing, by the one or more routines, the retirement plan of the investor to be transitioned over a period of time into a payout-ready portfolio capable of sustaining a personalized pattern of periodic cash payouts by: identifying a payout period over which the personalized pattern of periodic cash payouts are to be made; creating a model of a plurality of fixed income investments selected from the limited universe of financial products as baskets of constant maturity Treasury bonds (CMTs); optimizing an allocation of at least a portion of the total value of the assets held within the retirement plan among the plurality of fixed income investments based on the model, the payout period and the personalized pattern of periodic cash payouts; and causing assets of the retirement plan to be rebalanced among the plurality of financial products to form within the investment retirement plan a payout portfolio and an equity exposure portfolio, wherein the payout portfolio is constructed to create a stream of income to support the personalized pattern of periodic cash payouts and includes an allocated portion of the total value among one or more of the plurality of fixed income investments based on results of said optimizing and wherein the equity exposure portfolio is constructed to address inflation risk by providing the retirement plan with an ability to rise with equities markets.