Method and system for implementing an adaptive investing methodology

1. A computer-implemented method comprising:

determining, by one or more computing devices, an asset allocation for each of a plurality of periods of a model duration that optimize an objective function, the asset allocations identifying for each of the plurality of periods of the model duration how much of an investment account to invest in one or more asset classes, the objective function comprising subtracting a value of a shortfall risk function from an expected value of an amount of income to be generated by an annuity purchased at the end of the model duration with funds in the investment account at the end of the model duration, wherein determining the asset allocation for each of the plurality of periods of the model duration that optimize the objective function comprises:

(a) determining a purchase rice of the annuity;

(b) determining a shortfall by subtracting a balance of the investment account at the end of the model duration from the purchase price of the annuity;

(c) if the shortfall is less than or equal to zero, determining the value of the shortfall risk function is zero; and

(d) if the shortfall is greater than zero, determining the value of the shortfall risk function as a product of the shortfall squared and a risk tolerance parameter; and

associating, by the one or more computing devices, the asset allocations with values of a plurality of investor variables.

2. The method of claim 1 , wherein the one or more asset classes comprise:

a growth asset class; and

a capital preservation asset class.

3. The method of claim 1 , wherein the one or more asset classes comprise at least one of equities, fixed-income assets, cash equivalents, real estate, and commodities.

4. The method of claim 1 , further comprising:

storing the asset allocations and the associated values of the plurality of investor variables in one or more wealth tables; and

providing the one or more wealth tables to a recipient.

5. The method of claim 1 , wherein the plurality of investor variables comprises:

a current account balance;

an investor's age;

a current income; and

a savings rate.

6. The method of claim 5 , wherein the plurality of investor variables further comprises an anticipated retirement spending.

7. The method of claim 6 , wherein the plurality of investor variables further comprises an indicator of the investor's level of risk tolerance.

8. The method of claim 5 , wherein the plurality of investor variables further comprises an indicator of the investor's level of risk tolerance.

9. A system comprising:

one or more modeling entity computing devices connected to a network, the one or more modeling entity computing devices being configured to generate one or more wealth tables and transmit the one or more wealth tables over the network,

the one or more modeling entity computing devices generating the one or more wealth tables based on a plurality of sets of values for a plurality of parameters of an objective function by optimizing the objective function for each of the sets of values to obtain asset allocations associated with the set of values, the objective function comprising for each of the sets of values, subtracting a value of a shortfall risk function from an expected value of an amount of income to be generated by an annuity purchased at the end of a model duration with funds in an investment account invested according to the asset allocations associated with the set of values, the one or more modeling entity computing devices determining the value of the shortfall risk function by determining a purchase price of the annuity, and for each of the sets of values, (a) determining a shortfall by subtracting a balance of the investment account invested according to the asset allocations associated with the set of values at the end of the second duration from the purchase price of the annuity, (b) determining the value of the shortfall risk function is zero if the shortfall is less than or equal to zero, and (c) determining the value of the shortfall risk function as a product of the shortfall squared and a risk tolerance parameter if the shortfall is greater than zero, the one or more modeling entity computing devices associating the asset allocations with values of a plurality of investor variables, and storing the asset allocations and the associated values of the plurality of investor variables in the one or more wealth tables;

one or more record keeper computing devices configured to transmit one or more sets of values of the plurality of investor variables, each of the one or more sets of values of the plurality of investor variables being associated with an investor; and

one or more recipient computing devices connected to the one or more record keeper computing devices and the one or more modeling entity computing devices by a network, the one or more recipient computing devices being configured to receive the one or more wealth tables from the one or more modeling entity computing devices, and the one or more sets of values of the plurality of investor variables transmitted by the one or more record keeper computing devices over the network, the one or more recipient computing devices being further configured to look up each of the one or more sets of values of the plurality of investor variables in the one or more wealth tables to obtain a new asset avocation for the investor associated with the set of values of the plurality of investor variables, and modify a current asset allocation of a portfolio associated with the investor based on the new asset allocation.

10. The system of claim 9 , wherein assets in the portfolio associated with the investor are purchased with funds in an investment account, the model duration comprising a first duration during which funds are contributed to an investment account and a second duration during which funds are withdrawn from the investment account, and the plurality of parameters comprises:

a first number of periods in a first duration during which funds are contributed to the investment account;

an amount invested in the investment account for each period of the first number of periods;

a second number of periods in a second duration during which funds are withdrawn from the investment account; and

an amount withdrawn from the investment account for each period of the second number of periods.

11. The system of claim 10 , wherein the plurality of investor variables comprises:

the current balance of the investment account;

the age of the investor associated with the investment account;

a current income of the investor associated with the investment account; and

a savings rate.

12. The system of claim 11 , wherein the plurality of investor variables further comprises an anticipated retirement spending.