Patent ID: 7831496

Claim:
A data processing system configured to manage a financial instrument comprising a guarantee of a minimum positive growth rate and a guarantee of a lifetime income, the data processing system comprising: one or more processors; and one or more memory modules, wherein at least one of the one or more memory modules comprises software configured, when executed by the one or more processors, to: store, in at least one of the one or more memory modules, an initial balance of an account created according to the financial instrument, wherein the financial instrument allows discretionary withdrawals from the account; store, in at least one of the one or more memory modules, a percentage value fixed upon an effective date of the guarantee of the lifetime income; store the minimum positive growth rate in at least one of the one or more memory modules; determine an updated account balance using the one or more processors, the determination based at least in part on a market performance of the account; store the updated account balance in at least one of the one or more memory modules; calculate a protected value using the one or more processors and the minimum positive growth rate, the protected value being at least equal to an amount based upon the initial account balance growing at the minimum positive growth rate for at least a defined period of time or until one or more defined events occur, whichever is sooner, wherein the protected value represents a positive rate of return provided by the guarantee of the minimum positive growth rate regardless of the market performance of the account; and calculate a transfer amount as a product of the percentage value multiplied by the protected value at the time of a particular event, wherein the guarantee of the lifetime income provides for periodic transfers to a beneficiary for the life of a designated party.