US 2014/0229403 A1 · Portfolio Decumulation And Risk Management

Abstract

A decumulation management system provides guidance for decumulation of a portfolio over a decumulation period of time. A spending amount is withdrawn from the portfolio during the decumulation period of time. The decumulation management system determines the probability of successfully withdrawing the spending amount during the remaining decumulation period and establishes thresholds for adjusting the spending amount and a risk profile of the portfolio based on the performance of the portfolio during the decumulation. When the portfolio value decreases below the thresholds, the spending amount may be reduced, and when the portfolio value exceeds the thresholds, the spending amount may be increased and the risk profile of the portfolio is decreased. The decumulation management system may provide recommendations based on these thresholds, or may automatically manage withdrawals of the spending amount and investments to match the risk profile.

Claims16

Dependent claims

A computer-implemented method for managing asset decumulation performed by a decumulation management system, the method comprising:

identifying a plurality of spending amounts for decumulation of a portfolio over a decumulation period of time, the portfolio including a portfolio value invested in assets with a risk profile, the spending amounts indicating an amount withdrawn from the portfolio value at designated times during the decumulation period;
determining, for each spending amount at a plurality of points of time in the decumulation period and at a plurality of portfolio values, the probability of successfully withdrawing the spending amount at the designated times for a duration of the decumulation period at the risk profile;
and
determining, for each spending amount at a point of time in the plurality of points of time, a threshold portfolio value for decreasing the spending amount to a lower spending amount when the portfolio value is lower than the threshold portfolio value, the threshold portfolio value determined based on the probability of successfully withdrawing the spending amount for the duration.

1 more element

Dependencies are inferred from the claim text.

Portfolio Decumulation And Risk Management

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Portfolio Decumulation And Risk Management

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Abstract

Claims16