METHOD AND SYSTEM FOR FINANCIAL ADVISING

1 . A method of financial advising comprising:

performing, by a computer, a simulation of an investment allocation over a predetermined time period using a capital market modeling technique, the simulation accounting for investments and expenditures planned to occur during the predetermined time period; and

determining, by the computer, using the simulation of the investment allocation, (1) a plurality of upper boundary portfolio values, each upper boundary portfolio value corresponding to a date in the predetermined time period, each upper boundary portfolio value comprising an amount of money calculated to provide a first predetermined likelihood of exceeding a value for a client goal from a present date until the corresponding date, (2) a plurality of lower boundary portfolio values, each lower boundary portfolio value corresponding to a date in the predetermined time period, each lower boundary portfolio value comprising an amount of money calculated to provide a second predetermined likelihood of exceeding the value for the goal from a present date until the corresponding date, (3) a plurality of anticipated future portfolio values, each anticipated future portfolio value corresponding to a date in the predetermined time period, and (4) an estimated chance that the anticipated future portfolio values will be greater than the upper boundary portfolio value on a corresponding date or be less than the lower boundary portfolio value on a corresponding date.

2 . The method of claim 1 , wherein each upper boundary portfolio value comprises an amount of money calculated to provide a first predetermined likelihood of exceeding a respective value for each of a plurality of client goals from a present date until the corresponding date, and wherein each lower boundary portfolio value comprises an amount of money calculated to provide a second predetermined likelihood of exceeding the respective value for each of the plurality of goals from a present date until the corresponding date.

3 . The method of claim 1 , wherein the recommended investment allocation includes only passive investments.

4 . The method of claim 1 , wherein the capital market modeling technique comprises a Monte Carlo analysis.

5 . The method of claim 1 , wherein the predetermined time period is one year.

6 . The method of claim 1 , further comprising:

determining, by the computer, an initial value of a client investment portfolio.

7 . The method of claim 1 , further comprising:

obtaining, by the computer, a client targeted end date and targeted end investment portfolio value.

8 . The method of claim 1 , wherein the capital market modeling technique comprises a reverse iteration algorithm.

9 . The method of claim 8 , wherein performing a simulation of a plurality of model investment portfolio allocations using a reverse iteration algorithm comprises:

obtaining by the computer a targeted portfolio end date and a targeted portfolio end value; and

for each of a plurality of periodic dates over a time period extending from a present time to the targeted portfolio end date, determining by the computer an amount of money needed to have a targeted confidence of having the targeted portfolio end value at the targeted portfolio end date.

10 . A computer-readable storage medium having computer-executable instructions that, when executed by a computer, control the computer to implement a method of financial advising comprising:

performing, by a computer, a simulation of an investment allocation over a predetermined time period using a capital market modeling technique, the simulation accounting for investments and expenditures planned to occur during the predetermined time period; and

determining, by the computer, using the simulation of the investment allocation, (1) a plurality of upper boundary portfolio values, each upper boundary portfolio value corresponding to a date in the predetermined time period, each upper boundary portfolio value comprising an amount of money calculated to provide a first predetermined likelihood of exceeding a value for a client goal from a present date until the corresponding date, (2) a plurality of lower boundary portfolio values, each lower boundary portfolio value corresponding to a date in the predetermined time period, each lower boundary portfolio value comprising an amount of money calculated to provide a second predetermined likelihood of exceeding the value for the goal from a present date until the corresponding date, (3) a plurality of anticipated future portfolio values, each anticipated future portfolio value corresponding to a date in the predetermined time period, and (4) an estimated chance that the anticipated future portfolio values will be greater than the upper boundary portfolio value on a corresponding date or be less than the lower boundary portfolio value on a corresponding date.

11 . The computer-readable storage medium of claim 10 , wherein each upper boundary portfolio value comprises an amount of money calculated to provide a first predetermined likelihood of exceeding a respective value for each of a plurality of client goals from a present date until the corresponding date, and wherein each lower boundary portfolio value comprises an amount of money calculated to provide a second predetermined likelihood of exceeding the respective value for each of the plurality of goals from a present date until the corresponding date.

12 . The computer-readable storage medium of claim 10 , wherein the recommended investment allocation includes only passive investments.

13 . The computer-readable storage medium of claim 10 , wherein the capital market modeling technique comprises a Monte Carlo analysis.

14 . The computer-readable storage medium of claim 10 , wherein the predetermined time period is one year.

15 . The computer-readable storage medium of claim 10 , further comprising:

determining, by the computer, an initial value of a client investment portfolio.

16 . The computer-readable storage medium of claim 10 , further comprising:

obtaining, by the computer, a client targeted end date and targeted end investment portfolio value.

17 . The computer-readable storage medium of claim 10 , wherein the capital market modeling technique comprises a reverse iteration algorithm.

18 . The computer-readable storage medium of claim 17 , wherein performing a simulation of a plurality of model investment portfolio allocations using a reverse iteration algorithm comprises:

obtaining by the computer a targeted portfolio end date and a targeted portfolio end value; and

for each of a plurality of periodic dates over a time period extending from a present time to the targeted portfolio end date, determining by the computer an amount of money needed to have a targeted confidence of having the targeted portfolio end value at the targeted portfolio end date.

19 . A device for financial advising comprising:

a processor configured for performing a simulation of an investment allocation over a predetermined time period using a capital market modeling technique, the simulation accounting for investments and expenditures planned to occur during the predetermined time period; and

the processor further configured for determining using the simulation of the investment allocation, (1) a plurality of upper boundary portfolio values, each upper boundary portfolio value corresponding to a date in the predetermined time period, each upper boundary portfolio value comprising an amount of money calculated to provide a first predetermined likelihood of exceeding a value for a client goal from a present date until the corresponding date, (2) a plurality of lower boundary portfolio values, each lower boundary portfolio value corresponding to a date in the predetermined time period, each lower boundary portfolio value comprising an amount of money calculated to provide a second predetermined likelihood of exceeding the value for the goal from a present date until the corresponding date, (3) a plurality of anticipated future portfolio values, each anticipated future portfolio value corresponding to a date in the predetermined time period, and (4) an estimated chance that the anticipated future portfolio values will be greater than the upper boundary portfolio value on a corresponding date or be less than the lower boundary portfolio value on a corresponding date.

20 . The device of claim 19 , wherein each upper boundary portfolio value comprises an amount of money calculated to provide a first predetermined likelihood of exceeding a respective value for each of a plurality of client goals from a present date until the corresponding date, and wherein each lower boundary portfolio value comprises an amount of money calculated to provide a second predetermined likelihood of exceeding the respective value for each of the plurality of goals from a present date until the corresponding date.

21 . The device of claim 19 , wherein the recommended investment allocation includes only passive investments.

22 . The device of claim 19 , wherein the capital market modeling technique comprises a Monte Carlo analysis.

23 . The device of claim 19 , wherein the predetermined time period is one year.

24 . The device of claim 19 , wherein the processor is further configured for determining an initial value of a client investment portfolio.

25 . The device of claim 19 , wherein the processor is further configured for obtaining a client targeted end date and targeted end investment portfolio value.

26 . The device of claim 19 , wherein the capital market modeling technique comprises a reverse iteration algorithm.

27 . The device of claim 26 , wherein the processor is further configured for performing a simulation of a plurality of model investment portfolio allocations using a reverse iteration algorithm by performing the steps of:

obtaining by the computer a targeted portfolio end date and a targeted portfolio end value; and

for each of a plurality of periodic dates over a time period extending from a present time to the targeted portfolio end date, determining by the computer an amount of money needed to have a targeted confidence of having the targeted portfolio end value at the targeted portfolio end date.