Methods and systems for providing and maintaining retirement income

摘要

Methods and systems for the provision of a targeted risk-protected minimum income benefit or protected distribution through the design and management of a trust that allows for exposure to the equity and fixed-income markets. The targeted minimum income amounts depend upon the performance of equity and fixed income assets and risk mitigation instruments contained in the Trust. The method and system rely upon the adjustment of constituent assets to provide for the targeted minimum retirement income amounts. The action of risk management procedures eliminate reliance upon third-party guarantors. The methods and systems include mortality management procedures that protect the participants against longevity risk.

主权项

1. A computerized method for providing participants of a trust a protected annual distribution amount (PADA), using a balanced fund account (BFA) and an income protection account (IPA), the IPA including hedges, the BFA and the IPA each having a value at a given time, the method comprising:
a. receiving capital market variables and inputs; b. using a computer processor running software on a computer readable medium to use at least the capital market variables and inputs to calculate an IPA claim fair value and hedge ratios, the IPA claim fair value and hedge ratios based on the PADA; c. determining that the IPA claim fair value differs more than a certain amount from the value of the IPA, and adjusting the PADA such that the IPA claims fair value is equal to the value of the IPA; d. recalculating the IPA hedge ratios to reflect the adjusted PADA; e. rebalancing IPA hedges to reflect the recalculated IPA hedge ratios; and f. causing payment of the PADA to be made.