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US 8,788,409 B1Granted
Enhancing income using line of credit sweep account
OwnerTanisha Souzainventor
Life of this patent
Estimating the term…
Abstract
A system and method for providing predictable income leverages income and excess cash flow into alternative income sources through linking a checking account to a revolving line of credit (L/C) and sweeping money back and forth between the L/C and the checking account. The system and method are automated using a computer running a software program.
Claims19
A method for an investor to generate a predictable income, where said investor has living expenses and a first income having a net value greater than said investor's living expenses, comprising:
- providing a computer having a memory,
- entering into said memory of said computer said first income of said investor,
- obtaining a revolving line-of-credit account from a lender with the ability to supply funds, wherein said lender charges interest at a predetermined rate on the average daily balance of funds withdrawn from said revolving line-of-credit account,
- obtaining a withdrawal-on-demand or checking account,
- obtaining a lump sum from said line-of-credit account and purchasing an income-producing investment with said lump sum from said revolving line-of-credit account, said income producing investment arranged to produce a second income,
- entering said lump sum into said memory of said computer,
- said computer being arranged to combine said first and said second incomes into a combined income,
- said computer also being arranged to direct a sweep of said combined income into said revolving line-of-credit account at predetermined intervals in order to minimize said average daily balance in said revolving line-of-credit account, thereby reducing the amount of interest due and the total amount owing in said revolving line-of-credit account,
- said computer further being arranged to direct said living expenses to be paid periodically each month by directing a sweep of sufficient of said funds in said revolving line-of-credit account into said withdrawal-on-demand or checking account for paying said living expenses, thereby minimizing said average daily balance of funds withdrawn from said revolving line-of-credit account and reducing the amount of said interest owed,
- whereby said first and said second incomes are used to pay down said revolving line-of-credit account while said living expenses are withdrawn from said revolving line-of-credit account and then paid in order to minimize said average daily balance in said revolving line-of-credit account and said amount of said interest paid.
7 more elements
A system for generating predictable additional income for an investor having a first income, comprising:
- a computer having a plurality of input and output components selected from the group consisting of displays, keyboards, mice, modems, and printers,
- said computer further including updatable memory selected from the group consisting of random-access or read-and-write memory, read-only memory, flash memory, and a hard memory disk, and
- a program operable in said computer,
- said program being arranged to receive information from said investor and cause said computer to display results on said input and output components and to store information in said memory,
- a revolving line-of-credit account obtained from a lender with the ability to supply funds, wherein said lender charges interest on the average daily balance of funds withdrawn from said line-of-credit account,
- a withdraw-on-demand account,
- an income-producing investment that is purchased with a lump sum withdrawn from said line-of-credit account and that is arranged to produce a second income for said investor and is used to purchase an income-producing asset for said investor,
- said computer being programmed so that when said first and said second incomes, said living expenses, the amount of said investment, and the interest rate of said line-of-credit are entered into said computer by said investor, said program computes the sum of said first and second incomes and causes said computer to display to said investor the amount and timing to sweep funds from said sum (a) into said line-of-credit account to repay said lump sum withdrawn, and (b) to pay said living expenses,
- thereby generating a predictable additional income for said investor by timing the sweeping of said funds into and out of said line-of-credit account in order to minimize the average daily balance on said line-of-credit and reduce the amount of interest paid.
6 more elements
A method for generating predictable income, comprising:
- obtaining at least one of each type of account selected from the group consisting of revolving line-of-credit and withdrawal-on-demand accounts,
- funding said line-of-credit account with a predetermined amount of funds borrowable at a predetermined rate of interest wherein the amount of interest due each month is based on the average daily balance borrowed,
- making a lump-sum purchase of a first income-producing investment using said funds from said revolving line-of-credit account,
- providing an investor having living expenses and an income in excess of said living expenses,
- depositing said income from said income-producing investment into said withdrawal-on-demand account,
- depositing said income in excess of living expenses from said investor into said withdrawal-on-demand account,
- providing a computer having a data input, a data output, a storage capability, and capable of running a program, said program being arranged to:
- (a) combine said income from said income-producing investment and said income of said investor,
- (b) periodically direct said investor to sweep money from said withdrawal-on-demand account into said line-of-credit account and then compute the balance in the line-of-credit account,
- (c) periodically pay said living expenses of said investor,
- (d) display financial information selected from the group consisting of said balance in said line-of-credit account, said balance in said withdraw-on-demand account, said lump sum purchase amount, said income of said investor, actions to be taken by said investor, and said income from said income-producing investment,
- whereby when there is a balance in said withdrawal-on-demand account, said program directs said investor to sweep funds from said withdrawal-on-demand account into said line-of-credit account, said investor can view all of said financial information and if said line-of-credit account balance repaid or nearly repaid, said investor can optionally use said money in said line-of-credit account to make a lump-sum purchase of a second income-producing investment and combine said income from said first investment and said second investment with said income of said investor in order to pay down said line-of-credit at a more rapid rate.
9 more elements
Dependencies are inferred from the claim text.