Patent ID: 8521633

Claim:
A computer-implemented method comprising: based on information regarding (i) a total value of assets held in an investment plan of an investor, (ii) a desired retirement age of the investor and (iii) characteristics of a plurality of financial products within a limited universe of financial products available for investment within the investment plan, identifying, by one or more routines running on one or more computer systems, (a) a payout period over which a personalized pattern of periodic cash payouts are to be made to the investor from the investment plan and (b) the personalized pattern of periodic cash payouts that can be sustained throughout the payout period by implementing a payout program; creating, by the one or more routines, 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, by the one or more routines, an allocation of at least a portion of the total value of the assets held within the investment plan among the plurality of fixed income investments based on the model, the payout period and the personalized pattern of periodic cash payouts; creating, by the one or more routines, the payout program by causing the assets to be rebalanced among the plurality of financial products to form within the investment 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 investment plan with an ability to rise with equities markets; and causing, by the one or more routines, a periodic cash payout of the personalized pattern of periodic cash payouts to be paid to the investor.