Patent ID: 8744880

Claim:
A method for managing payout and risk in an account, using a computing system having a processor and a storage, the method comprising: (a) retrieving, from the storage into the processor, information concerning the account, the information comprising a desired payout from the account over a given period of time, the information being retrieved comprising: a number of time periods subsequent to an allocation in a first user-specified one of the time periods to fixed income securities that amounts applicable to fixed income will step down from an amount in the first user-specified one of the time periods and a percentage of the allocation in the first user-specified one of the time periods that will step down for each of those time periods; a number of said time periods and final percentage of step out; and a requirement that the allocation to fixed income securities start in a second user-specified one of the time periods and tilt in a linear or non-linear fashion from said second user-specified one of the time periods; (b) receiving, into the processor, information concerning assets of the account, the information concerning the assets of the account comprising a historical and projected future performance of the assets, the assets comprising fixed-income assets and non-fixed-income assets; (c) automatically determining, in the processor, an allocation of the assets of the account in accordance with the information received in steps (a) and (b) so as to match to a set degree a monetary weighted duration of the assets to a monetary duration of the desired payouts; (d) automatically providing for the sale and purchase of assets in the account to match the allocation of assets determined in step (c); and (e) performing steps (c) and (d) for each of said plurality of time periods to change a proportion of the fixed-income assets in the account to the non-fixed-income assets in the account to match to the set degree the monetary weighted duration of the assets to the monetary duration of the desired payouts.