| US 7,577,597 B1 | ||
| System for financial planning | ||
| Suzanne S. Allison, Baltimore, Md. (US); Joseph P. Healy, Baltimore, Md. (US); Phillip Liebes, Baltimore, Md. (US); and James M. Surguine, Laurel, Md. (US) | ||
| Assigned to T. Rowe Price Associates, Inc., Baltimore, Md. (US) | ||
| Filed on Sep. 09, 1999, as Appl. No. 9/393,024. | ||
| Int. Cl. G06Q 40/00 (2006.01) | ||
| U.S. Cl. 705—35 [705/36; 705/40; 705/41; 705/42; 235/379; 235/380] | 32 Claims |
| 1. A computer-implemented method for selecting at least one financial strategy from a plurality of financial strategies to
achieve at least one financial goal, each financial strategy comprising an asset allocation, comprising the steps of:
receiving at a computer investor financial preferences regarding a plurality of attributes for at least one financial goal;
performing within the computer a plurality of Monte Carlo simulations on the asset allocation of each financial strategy based
on a probability distribution;
generating rates of return within the computer for each respective financial strategy based on the Monte Carlo simulations;
calculating financial projections for each financial strategy based on the rates of return for each respective financial strategy;
calculating a plurality of attribute measures for each financial strategy based on the financial projections for each respective
financial strategy, the plurality of attribute measures corresponding to the plurality of attributes for the at least one
financial goal;
calculating a utility score for each financial strategy based on the plurality of the attribute measures for each respective
financial strategy and the investor financial preferences regarding the plurality of attributes for the at least one financial
goal; and
selecting at least one of the financial strategies from the plurality of financial strategies by the computer based on the
utility scores for the plurality of financial strategies.
|