Economic security planning method and system

A method of generating information representative of annual savings, consumption and term life insurance premiums for an optimized sustainable standard of living, said method comprising the steps of:

• A) providing a general purpose computing device including a processing data and memory means for storing data;
• B) inputting and storing in said memory means user data including data representative of demographic information, financial information, housing requirement information or economic assumption information;
• C) generating and storing in said memory means data representative of initial consumption information and initial insurance information;
• D) determining and storing in said memory means data representative of projected housing expenditures as a function of said user data;
• E) determining and storing in said memory means data representative of income from employer pension plans as a function of said user data;
• F) determining and storing in said memory means data representative of social security benefits as a function of said user data;
• G) determining and storing in said memory means data representative of tax liabilities as a function of said user data and said data representative of housing expenditures;
• H) determining and storing in said memory means data representative of consumption and savings recommendations as a function of said user data and data representative of income from employer pension plans;
• I) determining and storing in said memory means data representative of life insurance recommendations as a function of said user data;
• J) optimizing, using dynamic programming including two interactive dynamic programs, and storing in said memory means, survivor data for optimized sustainable standard of living as a function of at least one of said data representative of tax liabilities, data representative of consumption and savings recommendations and data representative of life insurance recommendations, said survivor data including data representative of recommended current consumption and term life insurance requirement information, data representative of recommended annual consumption and term life insurance requirement information, data representative of non-tax deferred asset balance information, data representative of total income information, data representative of spending information, data representative of tax liability information, data representative of housing expenditure information, data representative of survivor living standards information;
• and
• K) generating formatted reports including said data representative of said survivor data.

A computer implemented method for determining a planned per equivalent adult consumption expense profile CEP(t) for a household including n members, where n is an integer that may vary over time, comprising the steps of:

• A. defining a desired per equivalent adult consumption expense profile for said household CED(t),
• B. defining a borrowing limitation profile Bmax(t),
• C. defining a non-asset income profile I(t),
• D. defining a nonconsumption expenditure profile E(t),
• E. defining a tax expenditure profile T(t),
• F. defining a life insurance premium expenditure profile LIp(t),
• G. defining a life insurance benefit profile LIB(t),
• H. defining an asset income profile A(t), and
• I. employing dynamic programming, including two interactive dynamic programs, to iteratively process CED(t), Bmax(t), lI(t), E(t), T(t), LlP(t), LIB(t), and A(t), whereby CEP(t) corresponds to the highest sustainable living standard until t=T, wherein CEP(t) =0 thereafter.

System for determining a planned per equivalent adult consumption expense profile CEp(t) for a household including n members, where n is an integer that may vary over time, comprising:

• A. means for defining a desired per equivalent adult consumption expense profile for said household CED(t),
• B. means for defining a borrowing limitation profile Bmax(t),
• C. means for defining a non-asset income profile I(t),
• D. means for defining a non-consumption expenditure profile E(t),
• E. means for defining a tax expenditure profile T(t),
• F. means for defining a life insurance premium expenditure profile LIp(t),
• G. means for defining a life insurance benefit profile LIB(t),
• H. means for defining an asset income profile A(t), and
• I. means for employing dynamic programming including two interactive dynamic programs for iteratively processing CED(t), Bmax(t), I(t), E(t), T(t), LIP(t), LIB(t), and A(t), to determine CEP(t) whereby CEP(t) corresponds to the highest sustainable living standard until t=T, wherein CEP(t)=0 thereafter.