Patent ID: 8515852

Claim:
A method of periodically generating a benchmark representing portfolio allocations of portfolio assets for a participant, the method comprising: recording, via a computing device into a storage, at least one of the payout of predetermined (D) year self-liquidating treasury inflation protected securities (TIPS) funds, or the payouts of a predetermined number of years laddered TIPS portfolio; recording, via the computing device into the storage, the D year TIPS break-even inflation rate; for a D year deferral, calculating, via the computing device, the TIPS distribution rate at year D at the current break-even inflation rate as (1+D year TIPS break even inflation rate) ^D* payout of D=zero year TIPS fund or laddered portfolio=TDR_YD; recording, via the computing device into the storage, the cost of a deferred annuity that provides $1 for life beginning in D years (CO$1) using a preselected list of insurance companies offering a deferred annuity at D years; calculating, via the computing device, the cost of an annuity that provides a payout equal to the TIPS payout at D years as (CO$1*TDR_YD), wherein (CO$1* TDR_YD)/(1+CO$1*TDR_YD) is a portfolio allocation percentage for the deferred annuity; calculating, via the computing device, the cost to acquire the TIPS fund as 1/(1+CO$1*TDR_YD), which is a portfolio allocation percentage for the TIPS funds; and publishing, via a network connected to the computing device, the portfolio assets and corresponding allocation results.