Patent ID: 7647261

Claim:
A method for planning an income stream, the method comprising: receiving personal data relating to an individual, the personal data including a value of a projected total future income of the individual and a value of projected total future expenses of the individual; electronically calculating on a computer an estimated difference between the projected total future expenses and the projected total future income on a year-by-year basis for a defined period of time, the estimated difference being calculated before the estimated difference actually occurs, wherein the calculating comprises: identifying a first year, the first year being a year within the defined period of time within which a positive difference between the projected total future expenses and the projected total future income is first expected to occur; designating a period of time between the first year and a final year of the defined period of time as a shortfall period, the final year being estimated based on a life expectancy of the individual; and determining a sum of money required to offset the difference between the projected total future expenses and the projected total future income during the shortfall period; outputting the sum of money to one or more annuity providers; receiving a plurality of annuity quotes from at least one of the one or more annuity providers, the plurality of annuity quotes being presented in an auction-style format; and purchasing an annuity from among the plurality of annuity quotes, the annuity providing a sum to offset the estimated difference.