Asset and liability modeling tool

A computer-implemented method of displaying results of a financial model for forecasting at least one financial variable relating to a client, the user interface comprising:

• receiving with a computer partial asset and liability data regarding the client, wherein the computer comprises at least one processor and operatively associated memory;
• receiving with the computer, from an assumption database, actuarial data comprising a death distribution describing probabilities that the client will die, a disability distribution describing probabilities that the client will become disabled and a long-term care distribution describing probabilities that the client will require long term care, wherein the computer is in electronic communication with the assumption database;
• receiving with the computer, from an economic database, economic data describing historical economic data describing historic stock market performance, historic interest rate values and historic inflation rates;
• receiving with the computer, from a regulation database, regulation data describing regulations affecting the financial model including at least one regulation selected from the group consisting of a tax code, a securities law, and a securities regulation,
• generating with the computer forecasted values for the at least one financial variable over a number of simulations of a predetermined period using the partial asset and liability data wherein the generating comprises, for each simulation:
• for each of a plurality of time points during the predetermined time period, randomly determining values for a plurality of states of the client considering the actuarial data, wherein the plurality of states comprise a state describing whether the client is dead, a state describing whether the client is disabled, and a state describing whether the client requires long term care, wherein determining the values for the plurality of states of the client comprises considering covariances between the plurality of states;
• and
• for each of the plurality of time points, calculating the value of the at least one financial variable based on the at least one state of the client, the economic data and the regulation data;
• displaying with the computer a topographical chart on a user interface, wherein the topographical chart is positioned on a plane shown in the user interface, wherein the plane is defined by a time axis and a value axis for the at least one financial variable, such that a coordinate set on the plane represents the value of the at least one financial variable at a time point, and wherein a height of a first point on the topographical chart corresponding to the coordinate set indicates a portion of the simulations that result in the coordinate set;
• displaying with the computer a movable cursor configured to be placed on the topographical chart, wherein the position of the cursor indicates a point in time;
• displaying with the computer an information field configured to display information about the at least one financial variable at the point in time corresponding to a location of the cursor;
• receiving additional asset and liability data regarding the client;
• generating with the computer additional forecasted values for the at least one financial variable over a number of additional simulations of a predetermined period using the partial asset and liability data and the additional asset and liability data wherein the generating comprises, for each simulation:
• for each of a plurality of time points during the predetermined time period, randomly determining values for a plurality of states of the client, wherein the plurality of states comprise a state describing whether the client is dead, a state describing whether the client is disabled, and a state describing whether the client requires long term care, wherein determining the values for the plurality of states of the client comprises considering covariances between the plurality of states;
• and
• for each of the plurality of time points, calculating the value of the at least one financial variable based on the at least one state of the client, the economic data and the regulation data;
• and
• displaying with the computer a second topographical chart on a user interface, wherein the second topographical chart is positioned on a plane shown in the user interface, wherein the plane is defined by a time axis and a value axis for the at least one financial variable, such that a coordinate set on the plane represents the value of the at least one financial variable at a time point, and wherein a height of a first point on the topographical chart corresponding to the coordinate set indicates a portion of the additional simulations that result in the coordinate set.

A system for displaying results of a financial model for forecasting at least one financial variable relating to a client, the system comprising at least one computer, wherein the computer comprises at least one processor and operatively associated memory, and wherein the memory comprises instructions thereon that, when executed by the at least one processor, causes the at least one computer to:

• receive from a plan database, asset and liability data regarding the client;
• receive from an assumption database actuarial data describing probabilities of the client entering at least one state selected from the group consisting of:
• deceased, disabled, and requiring long-term care, wherein the computer is in electronic communication with the assumption database;
• receive from an economic database, economic data describing historical economic data describing historic stock market performance, historic interest rate values and historic inflation rates;
• receive from a regulation database, regulation data describing regulations affecting the financial model including at least one regulation selected from the group consisting of a tax code, a securities law, and a securities regulation,
• generate forecasted values for the at least one financial variable over a number of simulations of a predetermined time period using the asset and liability data, wherein the generating comprises for each simulation:
• randomly determining at least one state of the client at a plurality of points during, the predetermined time period considering a likelihood of the client assuming the at least one state, wherein the determining is based on the actuarial data;
• and
• randomly determining a first value for at least one economic variable selected from the group consisting of a stock market value, an interest rate and an inflation rate, considering a likelihood of the economic variable taking the first value;
• calculating the value of the at least one financial variable based on the at least one state of the client and the first value for the at least one economic variable based on the economic data and the regulation data;
• and
• display a topographical chart on a user interface, wherein the topographical chart is positioned on a plane shown in the user interface, wherein the plane is defined by a time axis and a value axis for the at least one financial variable, such that a coordinate set on the plane represents the value of the at least one financial variable at a time point, and wherein a height of a first point on the topographical chart corresponding to the coordinate set indicates a portion of the simulations that result in the coordinate set.

A system of displaying results of a financial model for forecasting at least one financial variable relating to a client, the system comprising at least one computer, wherein the computer comprises at least one processor and operatively associated memory, and wherein the memory comprises instructions thereon that, when executed by the at least one processor, causes the at least one computer to:

• receive partial asset and liability data regarding the client;
• receive from an assumption database actuarial data comprising a death distribution describing probabilities that the client will die, a disability distribution describing probabilities that the client will become disabled and a long-term care distribution describing probabilities that the client will require long term care, wherein the computer is in electronic communication with the assumption database;
• receive from an economic database economic data describing historical economic data describing historic stock market performance, historic interest rate values and historic inflation rates, wherein the computer is in electronic communication with the economic database;
• receive from a regulation database regulation data describing regulations affecting the financial model including at least one regulation selected from the group consisting of a tax code, a securities law, and a securities regulation, wherein the computer is in electronic communication with the regulation database,
• generate forecasted values for the at least one financial variable over a number of simulations of a predetermined period using the partial asset and liability data wherein the generating comprises, for each simulation:
• for each of a plurality of time points during the predetermined time period, randomly determining values for a plurality of states of the client considering the actuarial data, wherein the plurality of states comprise a state describing whether the client is dead, a state describing whether the client is disabled, and a state describing whether the client requires long term care, and wherein determining the values for the plurality of states of the client comprises considering covariances between the plurality of states;
• and
• for each of the plurality of time points, calculating the value of the at least one financial variable selected from the group consisting of a stock market value, an interest rate and an inflation rate based on the at least one state of the client, the economic data and the regulation data;
• display a topographical chart on a user interface, wherein the topographical chart is positioned on a plane shown in the user interface, wherein the plane is defined by a time axis and a value axis for the at least one financial variable, such that a coordinate set on the plane represents the value of the at least one financial variable at a time point, and wherein a height of a first point on the topographical chart corresponding to the coordinate set indicates a portion of the simulations that result in the coordinate set;
• display a movable cursor configured to be placed on the topographical chart, wherein the position of the cursor indicates a point in time;
• display an information field configured to display information about the at least one financial variable at the point in time corresponding to a location of the cursor;
• receive additional asset and liability data regarding the client;
• generate additional forecasted values for the at least one financial variable over a number of additional simulations of a predetermined period using the partial asset and liability data and the additional asset and liability data wherein the generating comprises, for each simulation:
• for each of a plurality of time points during the predetermined time period, randomly determining values for a plurality of states of the client, wherein the plurality of states comprise a state describing whether the client is dead, a state describing whether the client is disabled, and a state describing whether the client requires long term care, wherein determining the values for the plurality of states of the client comprises considering covariances between the plurality of states;
• and
• for each of the plurality of time points, calculating the value of the at least one financial variable selected from the group consisting of a stock market value, an interest rate and an inflation rate based on the at least one state of the client, the economic data and the regulation data;
• and
• display a second topographical chart on a user interface, wherein the second topographical chart is positioned on a plane shown in the user interface, wherein the plane is defined by a time axis and a value axis for the at least one financial variable, such that a coordinate set on the plane represents the value of the at least one financial variable at a time point, and wherein a height of a first point on the topographical chart corresponding to the coordinate set indicates a portion of the additional simulations that result in the coordinate set.