Patent ID: 8170943

Claim:
system for generating a single numerical score representing a metric of an entity's financial status relative to achieving financial independence by a future date, the system comprising: (a) an input device for inputting entity data, wherein said entity data comprises: i) a value of the entity's current and projected assets and resources; ii) a value of the entity's actual savings; iii) a future date; and iv) a desired income of the entity on the future date; (b) a memory for storing said entity data; (c) instructions stored in said memory; (d) an output device; and (e) a processor for converting said entity data into a metric of the entity's financial status relative to the financial goal based on the instructions, wherein the instructions are operable on the processor to cause the system to: i) calculate a present value of actual capital by calculating and then adding together the values of the entity's total current and projected assets simulated over time based on historical rates; ii) calculate a present value of actual annual savings; iii) add the present value of the actual capital to the present value of the actual annual savings; iv) divide the value obtained in step iii) by the present value of required capital to calculate a score, wherein the required capital is calculated by determining a threshold value of capital that will provide a desired income on the future date, adjusting the threshold value for inflation and after determining whether a principal amount will be preserved or consumed beginning at the future date and over the remaining life expectancy; and v) output the score from the output device; wherein the score is a single number that represents the entity's financial status relative to achieving financial independence by the future date.