Patent Document

RELATED APPLICATIONS  
       [0001]    The present application is a continuation-in-part of U.S. application No. 09/431,668 entitled “SYSTEM, METHOD AND ARTICLE OF MANUFACTURE FOR GENERATING A STRATEGIC FINANCIAL MODEL FOR MANAGEMENT AND ADVICE GENERATING PURPOSES” filed Nov. 1, 1999, and U.S. application No. 09/580,273 entitled “SYSTEM, METHOD, AND ARTICLE OF MANUFACTURE FOR FORECASTING AND STRESS TESTING USING A NETWORK-BASED PERSONAL INVESTMENT MANAGER” filed May 25, 2000 both of which we incorporate herein by reference. 
     
    
     
       FIELD OF THE INVENTION  
         [0002]    The present invention relates generally to computerized information systems and more particularly to computer implemented financial modeling systems.  
         BACKGROUND OF THE INVENTION  
         [0003]    Financially prudent individuals develop a comprehensive financial plan that will aid them in achieving their financial goals. Traditionally, many individuals have entrusted their financial plans to personal financial advisors. More recently, some individuals have increasingly relied upon computer-based systems that organize their financial assets and liabilities and further provide them with a summary of their financial health. However, these systems tend to focus on the administrative aspects of financial planning without enabling the user to make reasoned choices about their financial futures. Furthermore, these systems are limited by their inability to dynamically analyze the financial goals. These limitations are counterproductive to the user&#39;s needs to develop and manage an integrated personal financial plan from an executive decision-making perspective.  
           [0004]    Many existing financial management systems allow users to electronically organize their financial assets and liabilities. These systems typically focus on presenting the user with a transactional summary of their financial health. However, these systems fail to capture the user&#39;s financial intentions and expectations about their future. Furthermore, these systems typically rely on the user to continually update their personal financial data. As a result, these systems are merely data-driven calculators that are incapable of providing the user with meaningful financial advice tailored to their financial intentions and expectations.  
           [0005]    Similarly, some financial management systems present a static view of the user&#39;s financial health. These systems typically require the user to provide the most current financial data relating to their financial assets and liabilities. Consequently, when the user wishes to develop or update their financial plan, the user must input their most recent financial information. This problem is further exacerbated by the fact that these systems demand a lot of typing and guessing when the user enters their financial data. This process is time-consuming and inefficient and does not promote an intuitive understanding of how complex financial variables interact to produce a sensible financial plan. A true user-friendly system would have to include a simple and intuitive graphical user interface. A Financial modeling is not very useful and accurate if the user does not submit all of his financial data because it is tedious to input all that data.  
           [0006]    Another problem with many existing financial management systems is that the user is typically limited to managing the transactional details of their financial data. In these systems, the user is shielded from the planning and deciding aspects of developing their financial plan. Accordingly, the user learns very little from the process and remains heavily dependent on the system to provide an accurate summary of their financial health. These limitations further exacerbate the lack of trust inherent within the relationship between the user and the financial management system.  
           [0007]    Financial coaching is another feature lacking from most of today&#39;s financial system. The use of a live advisor is expensive. Furthermore, a great deal of the time spent with a live advisor is spent on isolating the problem and not attacking the causes of it.  
           [0008]    No system currently exists that dynamically incorporates all of the user&#39;s financial assets and liabilities into an integrated summary of their health. Individuals do not want to focus on the transactional details of their financial information. Instead, individuals desire to assume an executive decision-making role in managing their financial life. A financial management system is needed where the user is provided with an integrated summary of their financial health and is given personalized financial advice tailored to their financial goals and intentions.  
         SUMMARY OF THE INVENTION  
         [0009]    A system, method and article of manufacture are provided for generating a financial model. A service level agreement that defines a level of financial management desired by a user is provided. A user is prompted to input financial information relative to the user. The financial information is stored in a database. A prospective cash flow of the user is aggregated over a predetermined amount of time based on the service level agreement and the financial information. The prospective cash flow is then output to the user. The financial information may include intended revenues and expenses of the user and/or external financial data. Preferably, the financial information includes external financial data including at least one of mortgage interest rates and market inflation rates.  
           [0010]    As an option, the user may be allowed to re-input the financial information if the prospective cash flow is deemed unacceptable by the user. The financial information would again be stored in a database. A prospective cash flow of the user would again be aggregated over a predetermined amount of time based on the service level agreement and the financial information. The prospective cash flow would again be output to the user.  
           [0011]    In one aspect of the present invention, a risk analysis is executed if the prospective cash flow is deemed acceptable by the user. In another aspect of the invention, advice based on the financial information is output if the prospective cash flow is deemed acceptable to the user.  
           [0012]    Furthermore, automated coaching both highlights projected problem areas and helps focus the user&#39;s attention on possible ways of attacking the problem areas. Furthermore, based on the negotiated service level agreement, the user may have access to a live advisor who can provide more specific coaching as well as the benefit of the experience and wisdom of an experienced human advisor.  
           [0013]    The system of the present invention allows the user to model his or her life intentions in terms of a projected cash flow into the future. The model highlights possible problem areas, and offers automated and live coaching on ways to resolve the issues. The user interface model is designed to simplify the input of the massive amount of data necessary for a useful financial model. The model further allows the financial institution providing the service to the user to tailors various financial products to fit the user&#39;s specific needs.  
           [0014]    These and other advantages of the present invention will be apparent upon a study of the following descriptions and drawings.  
       
    
    
     BRIEF DESCRIPTION OF THE DRAWINGS  
       [0015]    The foregoing and other objects, aspects and advantages are better understood from the following detailed description of a preferred embodiment of the invention with reference to the drawings, in which:  
         [0016]    [0016]FIG. 1 illustrates a representative system architecture in accordance with a preferred embodiment;  
         [0017]    [0017]FIG. 2 is a block diagram of the financial management system;  
         [0018]    [0018]FIG. 3 is a block diagram of a representative hardware environment in accordance with a preferred embodiment;  
         [0019]    [0019]FIG. 4 is a block diagram of a financial management system;  
         [0020]    [0020]FIG. 5 is a flow diagram of a financial management system;  
         [0021]    [0021]FIG. 6 is a LifePath model flow diagram;  
         [0022]    [0022]FIG. 7 is an illustration of a LifePath model interface;  
         [0023]    [0023]FIG. 8 is an illustration of a Salary input interface;  
         [0024]    [0024]FIG. 9 is a logic flow diagram for a salary input screens, various icons and functions;  
         [0025]    [0025]FIG. 10 depicts more logic flow diagram for a salary input screen;  
         [0026]    [0026]FIG. 11 is an illustration of an One-time Life Events interface;  
         [0027]    [0027]FIG. 12 is an intervention flow diagram and an illustration of an interface for setting a luxury index for each spending;  
         [0028]    [0028]FIG. 13 is a flow diagram for a use of idle funds intervention;  
         [0029]    [0029]FIG. 14 is a flow diagram for a tax break intervention;  
         [0030]    [0030]FIG. 15 is a flow diagram for an increase draw intervention;  
         [0031]    [0031]FIG. 16 is an illustration for reducing luxury spending intervention;  
         [0032]    [0032]FIG. 17 illustrates a flow diagram for a rebalance portfolio intervention;  
         [0033]    [0033]FIG. 18 illustrates a portfolio rebalancing interface;  
         [0034]    [0034]FIG. 19 illustrates a interface and a flow diagram for a formulaic cash flow input interface;  
         [0035]    [0035]FIG. 20 is an illustration of a LifePath model web page interface; and  
         [0036]    [0036]FIG. 21 is an illustration of a LifePath model web page∝s interactive computing environment.  
     
    
     DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS  
       [0037]    [0037]FIG. 1 is an illustration of one embodiment of a financial management information system, in accordance with the present invention, for providing personalized financial advice in a collaborative computing environment. In FIG. 1, financial management system  100  includes a financial advisor system  102  connected through a wide area network  104  to the live advisor terminal  106  a user terminal  110 . Preferably, the wide area network  104  is a global network such as the Internet. The Internet is based on the TCP/IP communication protocol first developed by the Department Of Defense in the 1960s. However, the present invention is not limited to the Internet and the TCP/IP protocol. The present invention can be implemented using any other protocols and many other networking system, including wireless networks, the Network File Service (NFS) protocol used by Sun Microsystems or a Novel network based on the UDP/IPX protocol.  
         [0038]    Preferably, the financial advisor system  102  communicates with the user through any number of devices such as handheld wireless personal organizers, pagers, cellular telephones, land telephones and regular desktop computers. All of the above equipment can act as a user terminal  110 .  
         [0039]    The user (e.g. individuals or company representative seeking financial advice) may access the system using a user terminal  110  (e.g. personal computer). A typical user computer terminal would be described in more detail in FIG. 3. The user computer is preferably equipped with software to receive live streaming video and/or still pictures over the wide area network  104 , from the advisor video camera  108 -B. Preferably, the user terminal  110  is further equipped with a video camera  108 -A and software to transmit live streaming video from the user, across the network  104  to the live advisor at the advisor terminal  106 . Access to the live financial advisor  106  and all other services provided by the Financial management system is controlled and channeled through the Financial Advisor system  102 . The user can access the financial advisor system  102  through the network  104  or by telephone  109 -A. A user telephone call is channeled through a call center discussed further subsequently in FIG. 2 to the Financial Advisor System and to the live advisor  106 .  
         [0040]    The live advisor terminal  106  is preferably equipped with the video camera  108 -B for transmitting live streaming video. The live advisor  106  may further communicate with the user via a telephone  109 -B.  
         [0041]    [0041]FIG. 2 is a block diagram of an implementation of the financial advisor system  102 . The user may access the system through the wide area network  104  and through a firewall server  112 . In a preferable implementation of the present invention, the wide area network is the Internet, an intranet, etc. A Web server  114  provides the user with a personalized website providing an interactive interface between the user, the financial advisor and financial management system  100 . The financial advisor system  102  further comprises of a mail server  116 , an application server  126 , a call center  117  and a data server  128 , all interconnected through a local area network  113 . The local area network (LAN)  113  may be any wide area intranet system or the internet.  
         [0042]    Security is important in any financial system. The firewall server  112  controls the access to the financial advisor system. The purpose and functionality of a firewall server is to prevent access to the system by unauthorized users and it would be appreciated by one skilled in the arts. Firewall servers are available through a variety of vendors and have become a standard feature of any secure system used as the primary defense against intruders and hackers.  
         [0043]    The web server  114  provides a personalized interactive web page environment for the user to operate in once he accesses the system. The web page is acting as the web interface between the financial system Web pages are created using the Hyper Text Markup Language (HTML),scripting languages such as Java Script™ or Pearl™ as well as Java™ applets. Creation of customized web page using any of the above programming languages is well within the scope of one skilled in the arts. The personalized web page provides an environment and an interface for the user to interact with the financial advisor system  102 . As an example, in one embodiment of the present invention, by selecting an appropriate icon from the interactive personalized website, the user is able to learn, plan, decide, transact and monitor his financial model.  
         [0044]    The mail server  1   16  handles electronic mail communication between the user and the financial advisor system  102 . The Mail server  116  may operate using any standard protocol such as Simple Mail Transfer Protocol (SMTP) and it is within the scope of the knowledge of one skilled in the art.  
         [0045]    The application server  126  is where the various modules of the financial advising system reside. The modules include the various coaching engines, the LifePath and the portfolio modeling sub-systems. The applications may be implemented in many programming languages, including the object oriented programming languages such as C++ or Java™ and be based on any platform such as UNIX™, Apple OS™ or Windows™ and NT™. Furthermore, the coaching engine rules for various coaching engine can reside on a data server  180 .  
         [0046]    Alternatively, the user may also interact with financial advisor system  102  through a telephone  124 . The user&#39;s call is channeled through the call center system  117 . The call center  117  includes an Automatic Call Distribution (ACD) server  122 , an Interactive Voice Response Server (IVR)  124 , a Computer Telephony Integration (CTI) server  118  and a RM workstation  125 , all interconnected through a Local Area Network or intranet  127 . The local area network  113  may also be used in interconnecting the various servers of call center. When the user calls into the financial advising system  102  using a remote telephone  124 , the IVR sever  124  receives the user&#39;s telephone call. The IVR system greets callers, prompting them for identification, and providing some information automatically. The Automatic Call Distributor (ACD) server  122  distributes the call using the Internet Protocol (IP) over the network, to the appropriate live coach. The Computer Telephony integration server (CTI)  118  acts as the link between the live advisor&#39;s telephone call and the workstation based applications and allows them to automatically work together. As an example, when the IVR server  120  obtains some information about the calling user, this information is delivered to the live advisor&#39;s workstation  106 , so the advisor does not have to request the same information again. Once the telephone call is properly routed to the live advisor, the user can user other means of communication such as electronic mail or white board™ simultaneously while he is interacting with the live advisor.  
         [0047]    The Data server  128  stores user input data and supplies the application Server  126 . The data server  128  includes outside database sources from which the financial advising system  102  can draw information such as actuarial data such as historical price data on securities from sources such as Reuters, user financial information such as banking and portfolio information in other financial institution, and market information such as the days closing numbers for various market indices as well as individual stock securities pricing information. Formatted in the Open File Exchange (OFX) format, now the accepted internet standard used by programs such as Quicken™ and MS Money™ the data server through the firewall can easily exchange information with the outside world and specifically the user.  
         [0048]    It should be noted that various computing platforms could be used to access the financial management system of the present invention. For example, a networked personal computer environment, a client-server system, a mainframe terminal environment, WEB TV terminal environment, dumb terminal environments can be used to access the financial management system of present invention. Depending upon the user&#39;s needs, a client-server system may be the most preferable computing system for implementing the financial system of the present invention. Furthermore, the representation of each server such as an application server or a data server, is a logical representation. The actual physical systems may be distributed over many servers, or be included on a single machine.  
         [0049]    [0049]FIG. 3 is a computer system architecture that can be used in implementing the present invention. This computer system architecture can be used to implement a user workstation, or any of the servers called for in FIG. 2. The present invention may be practiced on any of the personal computer platforms available in the market such as an IBM™ compatible personal computer, an Apple Macintosh™ computer, Solaris™ or UNIX™ based workstation. The operating system environment necessary to practice the present invention can be based on Windows™, NT™, UNIX™, Apple Operating System™, or open source operating system software such as Linux™ and Apache™. Furthermore, the computer system can support a number of processes. As appreciated by one skilled in the art, the processes may be written in any of the available programming languages including object oriented programming languages such as Java™ or C++.  
         [0050]    The computer system architecture depicted in FIG. 3 includes of a central processing unit  130 , such as a microprocessor, a read only memory (ROM)  136 , a random access memory (RAM)  134 , an input and output adapter  138 , a storage device  140 , and interface  142  connecting a plurality of input and output device such as a keyboard  144 , a mouse  146 , a speaker  148 , a microphone  150 , a video camera  152  and a display  158 , and a system bus interconnecting all the components together. The computer may also include such devices as a touch screen (not shown) connected to the bus  132  and communication adapter  154  such as a dial up modem, a Digital Subscriber Line (DSL) modem or a cable modem, for connecting the workstation to a communication network  104  (e.g., the internet). The storage device  140  can be any number of devices including but not limited to hard disk drive, a floppy drive, CD-ROM, DVD, a tape device, and removable magnetic storage devices such as a Jazz™ drive or ZIP™ drive. There are therefore a number of computer readable media encompassed by system depicted in FIG. 3, including but not limited to RAM  134 , ROM  136 , storage device  140 , and storage accessible over the network connection  104 .  
         [0051]    [0051]FIG. 4 represents an illustration of the data flow of a financial Advisor System  102  of the present invention. A user using for example the user computer  110 , preferably connects to the Financial Advisor system  102  over the wide area network  104 . After authentication by a firewall server, the user at a user terminal  110  enters the Financial Advisor system  102  at the service level subsystem  160 . The service level agreement provides the level of services to which the user is entitled. Once the user has negotiated a service level agreement  161  , he is prompted to select the model to be used in operation  162 . In one embodiment of the present invention, the level of service and support selected in the service level agreement  160  controls the user&#39;s access to different modeling tools.  
         [0052]    In a preferred embodiment of the present invention the Lifepath model may be the hub of the financial institution&#39;s relationship. The LifePath model provides data to all coaching engine allowing customized coaching output to be dispensed to the user based on his unique financial situation. The LifePath model combines all the pertinent financial information about a user in one coherent and comprehensive picture and models the user&#39;s life intentions into an aggregated cash flow system over a user selected period of time. Using the terminal  110  the user inputs his life intentions in terms of projected income and expenses. The LifePath model  164  maintains an interactive dialog between the user and financial management system  100 . The LifePath model integrates the financial information available about the user in accordance with the user&#39;s service level agreement  160  to create an aggregate forecast of cash flow over the user&#39;s lifetime. The financial information available about the user includes the user&#39;s life intentions data  166  and the user&#39;s external financial data  168 . In a preferred embodiment of the present invention, the user&#39;s external financial data can include current checking account information from the user&#39;s bank or data related the user&#39;s 401K plan. By incorporating external data  168  into the LifePath model  164 , the system is capable of dynamically analyzing the financial needs of the user and providing the user with an understanding of their financial health at any point with minimal input form the user. As discussed above, personalized service level agreement  160  can optionally allow the user to limit the system&#39;s and/or advisor&#39;s access to the user&#39;s external financial data  168 .  
         [0053]    Additionally, life path model  164  also integrates external market data  170  into the aggregated forecast of the user&#39;s cash flow. In one embodiment of the present invention, external market data  170  includes information such as current mortgage interest rates or market inflation rates. Access to both internal and external databases is controlled by the user&#39;s service level agreement. The LifePath modeling tool  164  is further discussed in a related U.S. application named the LifePath Counseling by the same inventors as the present invention, attorney docket number AND1P758, filed on the same day as the present application and incorporated herein by reference.  
         [0054]    Alternatively, the user may by pass the LifePath model and start with a portfolio modeling tool  182 . The availability of the portfolio modeling tool is based on the user&#39;s service level agreement  161 . The user would supply his financial portfolio information to the financial advising system  102 , either directly using the user terminal  110  or indirectly through the wide area network  104 , by accessing a multiplicity of databases  166 ,  168  and  170 , and accessing information such as his securities portfolio at a particular brokerage firm.  
         [0055]    A financial portfolio modeling tool  182 , is an interactive tool that has access to the all the information available to the Lifepath model  162 , such as the user&#39;s life intentions data  166 , the user&#39;s external financial data  168 , as well as external market data  170 . User insight data  167  and aggregated data from the Lifepath model  165  is also available to the portfolio modeling tool. As a result the user has little to input and may start using the portfolio model  182  very quickly without the need to do a lot of tedious data input. The financial portfolio modeling also allows the user to access a computer coach and/or a live advisor based in part on the service level agreement. An alternative embodiment allows the user to use the LifePath model  164  and set his long term financial goals and then use the portfolio modeling tool  182  to adjust his investment portfolio to better achieve his long term financial goals.  
         [0056]    The LifePath interactive financial model may capture customer&#39;s intentions at the start of the relationship and displays them as lifetime cash flow requirements. Customer data and LifePath information combine to form a deep understanding of the customer&#39;s financial needs at each stage of life. Using dynamic, interactive multimedia, it quickly captures the customer&#39;s intentions and expectations about an ideal future. This flushes out some issues which trigger the initial discussions in the relationship. It also supports estimating the lifetime value of the customer and the appropriate levels of service. The data from this model combines with insight from product and transaction history as well as real time input from the abundance of interactive models to power rule-based advice engines. This automated advice leverages the advisor&#39;s time so that a broad customer based can be profitably supported. Configured using sliders and other interactive controls, there is little typing to slow the process down. The controls build a linear graphic representation of a life path which models predictable life transitions over time more effectively then data-driven calculators. Sales opportunities, lifetime customer value and appropriate fee structure are now more accurately identified.  
         [0057]    Coaching generating subsystem  172  comprises one or more advice or coaching engines  174 . Coaching engine  174  dynamically analyzes the financial needs of the user in accordance with the user&#39;s service level agreement. Furthermore, the coaching engine  174  is configured to operate with coaching engine rules repository  176 . Coaching engine rules repository  176  is a collection of rules-based business logic that produces clear automated advice. Coaching engine rules repository  176  generates its advice using LifePath data  165  and user insight data  167 . Alternatively the investment portfolio data from the portfolio modeling tool  182  triggers the coaching engines advise. In one embodiment of the invention, user insight data  167  includes transaction history, product or purchase history, as well as demographic information about the user.  
         [0058]    In addition to providing coaching to the user, advice generating subsystem  172  also recommends product solutions to the user. As an example, in one embodiment of the present invention, the coaching engine  174  can recommend that the user include deposit products and loan products in their financial plan. For example, the coaching engine  174  can recommend that the user acquire a certain mortgage or bridge financing. Similarly, the coaching engine  174  can also direct the user to the need for financial products such as, home improvement, line of credit, or credit card products. Coaching engine  174  can also have access to product information from various financial institutions (not shown). Accordingly, the user can request additional information about the various products recommended by the system.  
         [0059]    The user can access their financial plan or life path model using user terminal  110 . User terminal  110  is part of collaborative computing environment  178  and is in data communication with virtual coach  180  and the advisor terminal  106  through communications network  104 . In one embodiment of the present invention, communication network  104  is the Internet.  
         [0060]    The advice and product solutions generated by the advice generating subsystem  172  are presented to the user through virtual coach  180 . Virtual coach  180  presents the product recommendation with accompanying rationale. The user may or may not wish to contact the dedicated financial advisor for additional advice or information. Because the system generates reasoned financial coaching in accordance with the user&#39;s financial needs and intentions, the financial advisor is able to operate more productively. Furthermore, the user can test different scenarios by altering the data captured by life path model  164 . Each scenario can then be analyzed by coaching engine  174 . The virtual coach  180  is further described in the related U.S. application named Automated Coaching For A Financial Modeling and Counseling System, attorney docket number AND1P760, by the same inventors as the present invention, filed on the same day as the present application and incorporated herein by reference. Furthermore, the LifePath model is further described in the related patent titled A Financial Planning and Counseling System Projecting User Cash Flow, attorney docket number AND1P758, by the same inventors as the present invention, filed on the same day as the present invention and herein incorporated by reference.  
         [0061]    In addition to virtual coach  180 , the user can optionally interact with a dedicated financial advisor  106  through communications network  104 . In an embodiment of the present invention, financial advisor  106  is located in a call center  118  on a relationship manager&#39;s workstation  125 . Financial advisor  106  may interact with user  110  using various multimedia interaction tools, for example, still-shot images or video streaming. Accordingly, the user is able to buttress the coaching received from virtual coach  180  with advice from a dedicated financial advisor operating at terminal  106 . In many situations, the live advisor&#39;s input may be necessary, since he brings a level of expertise and experience no automated coaching system may match. However, since the automated coaching has framed the problem for the user and the live advisor, both can immediately start analyzing alternative solutions in a focused and cost efficient fashion.  
         [0062]    Depending on the level of service the user has negotiated with the service level agreement  161 , he may have a multiplicity of modeling tools available in the financial management system. In alternative embodiments of the present invention, modeling tools for analyzing various financial instruments such as bonds, reverse mortgages, option contracts and a like may be available to the user.  
         [0063]    [0063]FIG. 5 illustrates a flow diagram of an embodiment of the Financial Advisor system  102 . The service level agreement process  160  may be one possible entry point for the user into the Financial Advisor system  102 , where the user negotiates a service level agreement and sets the level of financial service de sired. The service level agreement  161  defines the user&#39;s desired level of advisor support as well as limiting the system&#39;s access to user provided information.  
         [0064]    After the service level agreement  182  has been negotiated, the user makes a first pass through the LifePath model  164 . Note operation  184 . In one embodiment of the present invention, the user may input its life intentions in terms of revenue intentions and expense intentions. The system then aggregates the information into a cash flow analysis over a user&#39;s income and expenses over a user defined period of time. The model may also include external data related to the user&#39;s finances. After a first pass through the LifePath model (process  184 ), the system may estimate the probable customer profitability  186  based on the user&#39;s financial plan given the user&#39;s life intentions and other financial information. If the user&#39;s service level agreement does not match the probable profitability  188 , the user can renegotiate the service level agreement negotiation or revisit LifePath model  184  to modify the model parameters, and then prompt the system to re-estimate the probable user profitability  184 .  
         [0065]    After fine tuning the LifePath model  188 , context sensitive automated computer coaching  192  is provided to the user using a coaching engine based on business logic rule-based engine. The rules repository  176  supplies business rules. The automated coaching engine  174  may highlight for the user periods within his LifePath model which need special attention, such as a projected cash deficit or cash surplus. Based on the coaching from the automated coaching engine  174  and/or a live advisor, the user may accept or reject the LifePath model  194 . If the user rejects the LifePath model, he may further modify and fine tune the LifePath model  188  until he is satisfied.  
         [0066]    In one embodiment of the present invention, the life path model process  196  is followed by an Executive activity process  198  where the system allows the user to assume an executive decision-making role in making their financial future. The executive activity process  198  enhances the user&#39;s ability to manage his or her financial life from an executive perspective. For example, through interaction with the system, the user learns  200 , plans  202 , or decides  204  the respective elements of their financial plan. Since the LifePath model  164  projects the user&#39;s cash flow in the future, the user may use the LifePath modeling tool  164  to change input variables such as savings, salary and expenses, and observe the long term effect of the changes on his financial goals. The intuitive graphical display of the LifePath model allows the user to get an immediate qualitative as well as quantitative feedback of the effects of the incremental changes on his long term goals. After engaging in these activities, the user may choose to initiate a transaction  206  based upon the advice generated by the system. In alternative embodiments of the present invention, both the automated coaching and the live advisor may recommend various financial products suitable to the user&#39;s financial situation. Furthermore, after initiating the transaction  206 , the user may monitor  208  and/or manage  210  the status of the products selected. In one embodiment of the present invention, the learn icon  200  allows the user to obtain information on the products recommended by the automated coaching engine or the live advisor. The system may have to access outside databases to access third party products which may be beneficial to the user&#39;s financial situation. The rule based coaching further may check the governmental regulations and impacts of adding or deleting a specific product to the user&#39;s financial portfolio. The governmental regulations analyzed can include an analysis of the tax consequences of using a certain product specific to the user.  
         [0067]    [0067]FIG. 6 is a logical flowchart of a process followed by the life path model  164 . Initially, the user typically develops  212  their life path model by inputting their life intentions. As discussed earlier, the life intentions may be expressed as revenue intentions or income  214  as well as expense intentions or expenses  216 . The user income  214  and expense  216  information can be fed to the system from a customer information file database  218 . This information may be combined with external market data  220  from external databases making the process of inputting personal financial information more interactive. After developing the LifePath model  212 , an aggregated modeling module is executed  222 . The user can verify that the model produced by the aggregated modeling module is acceptable  224 . If the model is not acceptable, the user can return to revise their life intentions  212 . Otherwise, if the model is acceptable, the user can execute the risk modeling module  226 . As discussed above, the risk modeling module assists the user in understanding their exposure to financial risk by illustrating how their ideal financial model would be impacted by a typical life crisis.  
         [0068]    After the risk modeling module has been executed  226 , the user may be provided with automated coaching  232  as well as a time-line display  234  of their aggregated forecast of their cash flow. Once again, the user may have the opportunity to verify that the model produced is acceptable  236 . If the model is not acceptable, the user can return to revise their life path model in accordance with their financial life intentions  212 . If the life path model produced is acceptable, the user can either exit the system  240  or initiate a transaction  238 .  
         [0069]    [0069]FIG. 7 is an embodiment of a screen layout for the LifePath model  164 . The model display window  244  depicts displays the user&#39;s cash on hand  246  and the user&#39;s cash needed  248  graph over a period of time. The time span covered by the model is defined by the user using the From Year window  250  and the To Year window  252 . The data point corresponding to the model is fed to the system by the user by selecting the Input Revenue icon  256  and the Input Expense icon  260 . In one embodiment of the present invention the revenues  256  include salary, investment, pension, alimony, disability, annuity, fees, loan or others. The expenses  260  include housing, transportation, entertainment, education, health care, vacation, savings, personal, investment, insurance, tax, loan and miscellaneous.  
         [0070]    Life events can be accounted for by selecting one of the event icons  262 . In one embodiment of the present invention the life event includes joblessness, disability, fatality, market downturn, portfolio downturn, divorce, fire, theft and collision. Based on actuarial data the model would calculate the likelihood of a certain dollar impact on the user&#39;s long term cash flow. Once one or more life risk events are selected, the user applies the event to the LifePath model by selecting the Stress Test icon  264 . The personal Net Worth icon  266  would calculate the effect of the user selections on the user&#39;s personal net worth.  
         [0071]    The LifePath model may be used to highlight future negative or positive cash flows periods. Through automated coaching the system can focus the user&#39;s attention to possible ways of solving the cash flow problem. Preferably, automated coaching is dispensed to the user in syntactically correct natural language using the coaching window  268 . A scroll bar  269  is used to scroll up and down the coaching strings.  
         [0072]    Based on the automated coaching, the user may select a variety of possible actions to solve the cash flow issues. The user may select Tax break icon  270  to take advantage of possible tax breaks. He may reduce his luxury spending  272 , increase income  274 , redirect investment  276  to increase his income, increase “draw” from his personal business  278 , refinance  280  a business or home, rebalance his investment portfolio  282 , borrow  284 , sell luxuries  286 , sell necessities  288  such as a car and even declare bankruptcy  290 . A series of functional icon allow the user to close the screen  294 , save the changes to the LifePath model  296 , revert back to the previous state of the model  298 , submit the changes  300 , print  302  and undo the changes  304 .  
         [0073]    [0073]FIG. 8 depicts an embodiment of how to input, edit and model the user&#39;s salary stream  305 . The display window  306  depicts the user&#39;s salary stream over a user selected time period. The user inputs his estimated highest  308  and lowest  310  expected salaries over the time span of the LifePath model covers. The user will input his estimated income in the input field  312  on a year by year basis. The income will include salary, spouse salary, regular draw from the business, loan repayment, family contribution, alimony, disability, rental income and other salary.  
         [0074]    In one embodiment of the LifePath Model, the interface used to plot time series for revenue and expenses is interactive. Each is represented as a timeline between any two defined dates and each annual point  314  of timeline can be interactively dragged up or down on its vertical axis. This device makes it easy to estimate changes and rough in long stretches of time without the tedium of conventional spreadsheet data entry. The interactive data entry process can iterate as needed until the model is as complete as possible.  
         [0075]    Function icons allow the user to delete a point  316 , close the salary input screen  318 , revert to a previous state  320 , submit  322  the salary data for incorporation into the model, and request for automated or live coaching on how to do and what to do at any given specific time. The cash outflow or expense may be entered in the same way and includes household expenses, investment, transportation, vacation, child support, rental and insurance payment.  
         [0076]    [0076]FIG. 9 depicts a logical flow chart of the salary input screen. The user may start by clicking the salary icon  326 . The system pulls the customer file  328  and checks to see if salary data exists  330 . If salary data already exists, the system would get additional data  332 , and open the edit window  334 .  
         [0077]    If no salary data exists, the system first gets a date range from the file  336 . Next, the system displays a graph with dates but no Y-scale  338 . In one embodiment of the present invention, the financial planning and counseling system prompt the user to see if he needs coaching  340 . If the user needs coaching, the system may provide automated interactive coaching  342 . If user does not require coaching, then the system traps the user&#39;s next action  344 .  
         [0078]    The user can rescale the displayed graph by changing the highest to lowest salary point  346 . If the highest and/or the lowest salary figures are changed or are entered for the first time, the LifePath model changes rescales the graph  348 . The user can delete an annual point  314  by clicking on the delete a point icon  316 . Note operation  350 . Once the delete a point operation is selected, the system prompts the user to click on the specific point to be deleted  352 . The marked point is then deleted. Note operation  354 . The system automatically connect the two adjacent points on either side of the deleted annual point  356  and redisplays the income graph  358 .  
         [0079]    In the preferred embodiment of the present invention, the salary graph  306  can be directly modified by clicking on it. Note operation  360 . The Lifepath model checks for points nearest to the date selected  362 . If there is no annual point near the selected point on the graph, a point is created at the nearest annual point  366 . If there is an existing annual point near the annual point  364  is moved to the new Y-value. The system rejoins the adjacent points if needed  368  to incorporate the new annual point location. If the Y-movement of the new annual point is less than 15% of the previous Y-value the system goes on to trap the next action  372 . If the Y-movement of the annual point is greater than 15%, that is if the income delta is greater than 15%  370 , then the system prompts the user for an explanation. Note step  374 . The user inputted reason is posted on the graph  376  and the system captures the event in the “milestone” list  378 . The milestone list would include events such as promotion or retirement.  
         [0080]    [0080]FIG. 10 is depicting a logic flow diagram for an embodiment of the present invention. When the mouse rolls over within the graph  380 , the system finds the Y-value of the nearest date  382  and displays the X value or the year and Y values or the salary for that annual point  384 .  
         [0081]    The user may begin the revert process  386  by selecting the revert icon  320 , the. The Financial Planning and counseling system (the LifePath system) informs the user that the current changes would be lost in a revert operation, and prompts the user for a confirmation  388 . If the user response is negative the system moves to trap the next action  390 . If the user response is positive, the model reverts to previously saved data  392 .  
         [0082]    By selecting the close icon  318 , the user may close  394  the current window. The system informs the user that without saving the data, all data would be lost upon closing of the window and prompts the user for a confirmation  396 . If the user response is negative, the system moves to trap the next action. Upon a positive user response, the system closes  400  the salary window  305 .  
         [0083]    In a preferred embodiment, automated coaching may be provided throughout the process of using the LifePath model including data entry. The user may request coaching by selecting the coaching icon  324  and start the coaching process  402 . In one embodiment of the present invention the system displays coaching in the form of animation with voice over explaining the purpose of the activity and how it is done  404 .  
         [0084]    Other coaching methods such as syntactically correct English coaching strings, streaming video clip or even a live advisor could be made available to the user based on the user service level agreement.  
         [0085]    Upon the selection of the submit icon  322  the user lunches the submit process  406 . The system asks the user if they want to update the LifePath model with the new data entered  408 . If the user replies negatively the system moves on to trap the next action  410 . If the user responds positively  412 , the system closes the salary window  412 , updates the LifePath data array  414 , recalculates aggregated values by year  416 , and updates the LifePath display  418  as well as the milestone list  420  and compute and displays appropriate coaching  422 .  
         [0086]    [0086]FIG. 11 is an embodiment of a screen for entering, editing and modeling one time income and expense events such as buying or selling a house. The time event graph  426  is populated with one time events that affect the user&#39;s financial situation and need to be accounted for if a realistic financial picture is desired. The one time life event points  428  are entered by selecting the “add an event” icon  430 . Specific events are selected from a drop down list box  432 . An unlimited number of non-standard entries as well as user specified entries can be added to the list. When the specific One-Time life event is selected from the drop-down list box  432 , a life event detail window  434  opens up, where the user inputs the details such a cost breakdown about the specific event. The initial value will come from the dialogue box. The submit icon  322  will trigger changes in cash balances displayed in aggregated LifePath. Sales and purchases of assets trigger changes in personal net worth. Depreciation and appreciation are calculated based on industry norms and using actuarial data from outside databases if needed. The life event&#39;s impact on taxation is also calculated. The LifePath model highlights possible future cash flow issue and coaches the user through automated coaching or a live advisor on how to deal with the specific issue.  
         [0087]    [0087]FIG. 12 outlines possible interventions that could be recommended to the user in resolving the cash flow issues in an embodiment of the present invention. The user attacks the cash flow issue first by the use of idle funds  436 . The user may be directed next to take advantage of any available tax breaks  438 . If the tax break results in idle funds to become available, the user can use it to preempt his problem  440 . An increase in draw may be applied to reduce a negative cash flow  442 . The idle funds available from an increase in draw would be applied to the cash flow problem  444 . Reducing luxury spending  446  would also result in idle funds  448  becoming available for cash flow problem resolution. The user may opt to rebalance his portfolio  450  with a possible resulting increase in idle funds  452  which would be available to eliminate cash flow issue.  
         [0088]    Every asset in the user&#39;s Personal Net Worth and every expense cash flow must be rated as a luxury or necessity on a scale of 1 to 5. This rating is done using a window  454  such as the one depicted in FIG. 12. A simple user interface such as a slider  456  is used to rate each asset and expense on a simple necessity to luxury index. This is referred to as the luxury index. After each intervention the user should get a chance to try again or revise his intervention input before the changes are posted to the LifePath model. After each intervention, the user gets a feedback on how the intervention affected the shortfall or surplus.  
         [0089]    [0089]FIG. 13 outlines the recommendation to use idle funds in the event of a shortfall in one embodiment of the present invention. To begin the system runs a diagnostic routine  458 , with resulting automated coaching such as the one depicted in  460 . The system checks for a surplus of funds before the shortfall. Note operation  462 . If there is no surplus of funds before the shortfall, the system may move on the next possible intervention  488 . If there is a surplus before the shortfall  464 , the system may look to see if the shortfall is due to either a luxury or necessity spending  466 . If there is no shortfall associated with a luxury or necessity the system coaches the user to invest funds at the same rate as other cash components of the general portfolio  468  and more specifically to invest the surplus for a given period of time at a specific rate  470 . If the shortfall is associated with a luxury or necessity expense, the system prompts the user to identify the expense from the dropdown list  432 . Note operation  472 . The system then gets the luxury index of the particular expense  474 , and automated coaching suggest to the user to invest funds at specific rates based on the luxury index  476 . The system calculates the future value of the surplus invested to the end of the surplus period  478 . The system compares the invested value to the future shortfall. If the shortfall is smaller than the value of the invested idle funds, the system prompts the user that the shortfall has been eliminated  482  and goes to the next projected shortfall  484 . If the value of the invested idle funds is less than the shortfall then the system may prompt the user that the invested surplus reduced the projected shortfall by $X and $Y is still needed to eliminate the remaining shortfall  486 . The system then moves to the next intervention  488 .  
         [0090]    [0090]FIG. 14 illustrates another possible intervention to reduce or eliminate a possible projected cash shortfall in the future in an embodiment of the present invention. The system prompts the user for possibilities of reducing taxes through unused tax breaks  490 . If there is such a possibility, the system recommends a specific tax rate reduction  494  and runs the diagnostic engine  498  to see if the shortfall has been eliminated  500 . If the shortfall has been eliminated, the system moves on to the next shortfall  502 . If there still is a shortfall, then the system moves to the next possible intervention  504 . If there are no unused tax breaks available  496 , then the system goes through the operations  500  and  502  or  504  depending on whether the shortfall persists or not.  
         [0091]    [0091]FIG. 15 illustrates another possible intervention to eliminate a projected cash flow shortfall in accordance with an embodiment of the present invention. The LifePath system may at first ascertain whether the user owns a business  506 . If the user is not a business owner the system moves on to the next intervention  508 . If the user does own a business the user is asked if he can withdraw funds from the business without putting it at risk or decreasing its value significantly  510 . If such a withdrawal is not possible  512 , the LifePath system moves on to the next intervention. If the possibility of withdrawal from the business exists, the user inputs possible options of withdrawing a lump sum, an annual draw or a draw over X years and a dollar figure for each possibility  514 . The LifePath system runs its diagnostic engine  516 , and if the shortfall is eliminated the system moves to the next shortfall  518 . If the shortfall persists  517 , the LifePath system moves on to the next intervention  520 .  
         [0092]    [0092]FIG. 16 illustrates a screen shot for reducing luxury spending in accordance with an embodiment of the present invention. To reduce a projected cash shortfall in the future, the user may reduce his luxury spending. The luxury spending reduction screen  522  helps the user identify and reduce possible luxury expenses he may reduce and would demonstrate to the user effect of the reduction on the projected shortfall. The window  524  shows the graph of the cash flow from year one to the first year of the shortfall. A bar chart showing both the cumulative savings  530  and cash shortfall  532  are displayed in the window  528 . In another window  534  a clickable list of recurrent expenses  536  is displayed from which, the user may select spendings he is willing to reduce. This interactive process continues until either the shortfall is eliminated or the user has eliminated or reduced his luxury expenses to the level he is comfortable.  
         [0093]    [0093]FIG. 17 illustrates another possible intervention to reduce or eliminate a projected cash short fall. The LifePath system begins by calculating the value in the first year of cash flow shortfall  538 . The user&#39;s investment portfolio value and the breakdown between the various classes of assets are derived from the user&#39;s personal net worth data. For reducing projected cash shortfalls these assets must be in the outside of an IRA or a 401K plan. In one embodiment of the present invention the user&#39;s investment portfolio has 3 components: cash equivalents, equities and fixed income (bonds, etc.). Cash is assumed to grow at 3%, equities at 10% and fixed income assets at  6 %.  
         [0094]    The user may rebalance his portfolio by changing the mix between the various assets in his portfolio  540 . The LifePath system recalculates the portfolio value from the start to the first year of the shortfall  542 . If the value of the shortfall is smaller than the change in the value of the portfolio  544 , the LifePath system may dispense coaching feedback  550  and moves to the next shortfall  552 . If the value of the shortfall is greater than the change in the value of the portfolio  545 , then the LifePath system prompt the user to try to rebalance his portfolio again  546 . If the user selects to retry to rebalance his portfolio he will be taken to step  540 . If he is done with rebalancing his portfolio, he moves on to the next intervention  548 .  
         [0095]    [0095]FIG. 18 is an embodiment of a portfolio rebalancing interface  550 . The change in a portfolio based on rebalancing  554  and its effect on the cash shortfall target to be overcome  556  are displayed in the form of a bar charts in the display window  552 . Changes due to rebalancing of the portfolio are reflected in the bar graphs  554  and  556 . Three icons for high risk  558 , moderate risk  560 , and low risk  562  flash are used as indicators for the amount of risk the user&#39;s portfolio is assuming. When the equities comprise more than 35% of the portfolio, the high risk icon flashes. Moderate risk is set at equities being less than 25% of the total value of the portfolio and low risk is set when equities are less than 15% of the total portfolio. A unique user interface  564  is used by to set the distribution of the assets in the user&#39;s portfolio. As the user moves the sliders  566  and  568 , the resulting changes in the portfolio is reflected in the bar chart  554 . By changing the asset mix in his portfolio, the user is assuming various degrees risk and he may increase or decrease the overall return on his investment portfolio and resolve the projected cash shortfall.  
         [0096]    [0096]FIG. 19 outlines an example of an embodiment of the layout for calculating and analyzing a long-term financial commitment such as a mortgage  570 . The same window may be used for any other type of formulaic cash flow such as loan repayments, leasing, annuity cash flow and others alike. An information entry window  572  may be used to input the details on the financial instrument. The user inputs the amount of the down payment  574 , the loan period  576 , the interest rate  578 , the years into the loan  580 , the type of loan  582  and the payment  584 . The mortgage type may require more input for special features, balloon payments, etc. Once all the information is inputted, the user submits the data  590  and a calculator calculates a graph of the cash flow for the mortgage  592  and displays it to the user  594 . The window  592  and the graph  594  are a possible window and a graph modeling the mortgage. Once the user is satisfied with the model, he may close the timeline  596  and the LifePath system updates the LifePath model with the information for the mortgage  598 .  
         [0097]    [0097]FIG. 20 is an example of one embodiment of a web page interface for the present invention. The web page interface of FIG. 20 shows a customized web site and an intuitive graphical user interface for the Lifepath model subsystem. As previously discussed, the web site may be a personalized web site which a client uses to collaborate with a dedicated virtual (or live) financial advisor. As depicted, the graphical user interface can include an advisor area  600 , where the advisor may be represented as a still image, via streaming video, or represented by a character. Selecting a link, such as the Contact Advisor link  602  shown, causes a connection to the advisor to be established. Preferably, the advisor and the user are able to communicate orally via network telephony of a type known in the art, but communication via email, chat, telephone call, or of any other type is acceptable.  
         [0098]    The advisor uses the space to negotiate an initial Service Level Agreement (SLA), and begin the modeling of the customer&#39;s Lifepath. This flushes out issues and permits an early estimate of customer value potential. The SLA nails down much advisor time the customer wants, how information will be shared, and how much intentions-based advice the customer will welcome. The advisor configures the Web site in accordance with this agreement. The investment of effort in this, along with the personal online relationship begins to develop “stickiness”. Much of the communication presented by the system is generated by rule-based business logic. This is what leverages the advisors, extending their reach. It should be noted that the client negotiates a Service Level Agreement at the start of the relationship for desired level of advisor support and how the bank may or may not use their personal information. Website functionality can provide new levels of customer support even if customer wants low level of advisor interaction. A link  604  may be provided that allows access to email. Other links can include a link  606  to personal memoranda, a link  608  to a links page, and a link  610  to a financial calendar. As an option, a calendar  612  and links  614  to news stories may be displayed on the page.  
         [0099]    A virtual coach area  616  of the page can be provided to display the comments and advice created by the virtual coach. As described above, client data drives a rules-based “advice engine” that dynamically analyzes customer needs and automates most of advisor&#39;s work. The client is encouraged to consolidate all their financial information in the site, recognizing assets and liabilities with other financial institutions. Upon selection of a button depicted along the bottom of the screen, a particular feature of the financial management system is displayed. For example, selecting the learn button  618  may bring up a portion of the screen (or a new screen) that discusses the functions and features of the financial management system. The plan button  620  may display the Lifepath model in time series form. A decide button  622  may display a screen that allows the user to make financial decisions, such as allowing a user to select transactions recommended by the advisor and/or the virtual coach. A transact button  624  may display a transaction screen on which the user performs transactions. A monitor button  626  may display current and/or historical information about transactions made by the user and/or financial performance.  
         [0100]    The life path interactive financial model captures customer&#39;s intentions at the start of the relationship and displays them as lifetime cash flow requirements. Customer data and life path information combine to form a deep understanding of the customer&#39;s financial needs at each stage of life. Using dynamic, interactive multimedia, it quickly captures the customer&#39;s intentions and expectations about an ideal future. This flushes out some issues which trigger the initial discussions in the relationship. It also supports estimating the lifetime value of the customer and the appropriate levels of service. The data from this model combines with insight from product and transaction history as well as real time input from the abundance of interactive models to power rule-based advice engines. This automated advice leverages the advisor&#39;s time so that a broad customer based can be profitably supported. Configured using sliders and other interactive controls, there is little typing to slow the process down. The controls build a linear graphic representation of a life path which models predictable life transitions over time more effectively then data-driven calculators. Sales opportunities, lifetime customer value and appropriate fee structure are now more accurately identified.  
         [0101]    Risk analysis may be integrated into the life path model enabling clients to better understand their financial health and to improve trade-off decisions. Formulating a personal risk/reward strategy is difficult. The life path model supports a risk simulator, showing how the ideal model would be impacted by typical life crises. The model can be played repeatedly with varying outcomes to foster an intuitive understanding of exposure and to provide grounded input into trade-off decisions. Using the risk modeling tools, the advisor can add value, consolidate the relationship and rationalize a stream of product sales.  
         [0102]    As shown in FIG. 21, life path model  164  captures the user&#39;s life intentions expressed as revenue intentions  628  and expense intentions  630 . As discussed above, revenue intentions  628  are a summary of the user&#39;s expense information  630 . The user is provided with an individual button for each of the income information categories  628 . For example, the user can input their income information such as salary, investment, pension, alimony, or disability, or other financial information as shown in FIG. 21. Similarly, the user can input their expense intentions which are shown by the category of interactive buttons  630 . For example, the user can input expense information such as housing, transportation, education, health care, or other expense information as shown in FIG. 21.  
         [0103]    Additionally, the user can control the level of risk that the model considers by selecting one or more of the graphical user interface (“GUI”) elements from the list of risk events  632 . The risk events  632  include various life events that may affect the user&#39;s life path model. For example, the user can request that the model include job loss, disability, casualty, market downturn, or other personal risk factors into their life path model.  
         [0104]    After providing the model with his or her life intentions expressed as revenue intentions  628  or expense intentions  630  in addition to any of the risk events, the user can select button  634  to run the life path model and initiate the advice generating subsystem. Accordingly, the user is provided with detailed advice in window  636  that is tailored to the user&#39;s life intentions and the risk events specified. As shown in window  636 , the user is provided with a clear automated coaching tailored to his or her life intentions gathered by the life path model. Furthermore, the coaching incorporates the risk events specified from the risk factors  632 . The graphical display  638  in FIG. 21 is a time series representation of the aggregated total of the user&#39;s cash flow over a selected period of time, based on the user provided revenue intentions  628  and expense intentions  630 .  
         [0105]    Additionally, the system provides the user with interactive and context sensitive virtual coaching  616  and  636  that notes the actions of the user while he progresses through the life path model and provides the user with suggestions to ensure that he continues to comply with his or her life intentions.  
         [0106]    The various embodiments described above are provided by way of illustration only and should not be constructed to limit the invention. Those skilled in the art will readily recognize the various modifications and changes which may be made to the present invention without strictly following the exemplary embodiments illustrated and described herein, and without departing from the true spirit and scope of the present invention, which is set forth in the following claims.

Technology Category: g