Patent ID: 6912509

Claim:
A computerized method of investing a lump sum, V, to provide N periodic payments at N equally spaced intervals, with the first of the periodic payments to be made b periods subsequent to the investment, the method comprising the steps: (a) determining an investor's risk tolerance, R; (b) determining the minimum expected return (MER i ), at the risk tolerance R, of each investment vehicle in a predetermined set of investment vehicles, at each of the N equally spaced intervals; (c) for each of the N intervals, identifying the investment vehicle that is characterized by the greatest MER i ; (d) calculating a normalization factor, NF, that is based on the respective MERs of each of the investment vehicles identified in Step (c); (e) calculating an investment growth factor, IF i , for each interval that is based on the respective MER i that is identified for the interval; and (f) investing an amount equal to V IF i × NF in each of the investment vehicles identified in Step (c).