DYNAMIC ASSET ALLOCATION AND VISUALIZATION
Systems and methods for dynamic asset allocation and visualization are provided. An outcome shaping engine may be executed to identify an asset allocation strategy that is specifically targeted towards achieving a defined goal. Such targeting may result in an asset allocation that has been selected to maximize the likelihood of reaching a specified financial goal (rather than generally maximizing return or a generally minimizing risk). In addition, a graphical representation may be generated to illustrate a plurality of possible outcomes associated with a set of asset allocation parameters.
1 . A method for dynamic asset allocation and visualization, the method comprising:
receiving input from a user via a graphic user interface, the user input specifying a starting asset amount, a minimum acceptable outcome, and a target outcome;
selecting an asset allocation based on the user input, wherein the asset allocation is selected to avoid falling below the minimum acceptable outcome and to maximize the likelihood of meeting the target outcome;
generating a visualization of a plurality of possible outcomes associated with the selected asset allocation over a predetermined time period, wherein the visualization includes:
a plurality of isopercentile lines that each correspond to a predetermined percentage range of the possible outcomes throughout the predetermined time period, and wherein each isopercentile line is at or above the minimum acceptable outcome; and
a histogram comprising a plurality of bars, each bar corresponding to a cumulative likelihood of each of the possible outcomes, wherein the histogram is aligned in accordance with the possible outcomes illustrated by the plurality of isopercentile lines; and
storing the selected asset allocation in a profile associated with a portfolio of the user.
2 . The method of claim 1 , wherein the input further includes a target date, wherein selecting the asset allocation is further based on the target date.
3 . The method of claim 1 , wherein selecting the asset allocation is based on a plurality of simulations each associated with a possible outcome.
4 . The method of claim 3 , further comprising filtering the simulations based on associated outcome falling at or above the minimum acceptable outcome, wherein generating the visualization is based on the filtered set of simulations.
5 . The method of claim 4 , further comprising selecting the asset allocation based on the filtered set of simulations, wherein the selected asset allocation is associated with a highest likelihood of meeting the target outcome.
6 . The method of claim 1 , wherein the generated visualization includes a line representing the minimum acceptable outcome, and wherein all of the isopercentile lines fall at or above the line representing the minimum acceptable outcome.
7 . The method of claim 1 , wherein one of the plurality of histogram bars is aligned to a line representing the target outcome and represents a highest likelihood among the plurality of histogram bars.
8 . The method of claim 1 , further comprising receiving new user input that includes an adjustment to at least one of the starting asset amount, the minimum acceptable outcome, and the target outcome, and automatically generating a new visualization based on the new user input.
9 . The method of claim 1 , further comprising receiving user input indicating approval of the selected asset allocation, and automatically initiating implementation of the selected asset allocation in real-time.
10 . A system for dynamic asset allocation and visualization, the system comprising:
a user interface that receives input from a user regarding a starting asset amount, a minimum acceptable outcome, and a target outcome;
a processor that executes instructions stored in memory to:
select an asset allocation based on the user input, wherein the asset allocation is selected to avoid falling below the minimum acceptable outcome and to maximize the likelihood of meeting the target outcome, and
generate a visualization of a plurality of possible outcomes associated with the selected asset allocation over a predetermined time period, wherein the visualization includes:
a plurality of isopercentile lines that each correspond to a predetermined percentage range of the possible outcomes throughout the predetermined time period, and wherein each isopercentile line is at or above the minimum acceptable outcome; and
a histogram comprising a plurality of bars, each bar corresponding to a cumulative likelihood of each of the possible outcomes, wherein the histogram is aligned in accordance with the possible outcomes illustrated by the plurality of isopercentile lines; and
a database in memory that stores the selected asset allocation in a profile associated with a portfolio of the user.
11 . The system of claim 10 , wherein the input further includes a target date, wherein selecting the asset allocation is further based on the target date.
12 . The system of claim 10 , wherein selecting the asset allocation is based on a plurality of simulations each associated with a possible outcome.
13 . The system of claim 12 , wherein the processor executes further instructions to filter the simulations based on associated outcome falling at or above the minimum acceptable outcome, and to generate the visualization is based on the filtered set of simulations.
14 . The system of claim 13 , wherein the processor executes further instructions to select the asset allocation based on the filtered set of simulations, wherein the selected asset allocation is associated with a highest likelihood of meeting the target outcome.
15 . The system of claim 10 , wherein the generated visualization includes a line representing the minimum acceptable outcome, and wherein all of the isopercentile lines fall at or above the line representing the minimum acceptable outcome.
16 . The system of claim 10 , wherein one of the plurality of histogram bars is aligned to a line representing the target outcome and represents a highest likelihood among the plurality of histogram bars.
17 . The system of claim 10 , wherein the user interface further receives new user input that includes an adjustment to at least one of the starting asset amount, the minimum acceptable outcome, and the target outcome, and wherein the processor executes further instructions to automatically generate a new visualization based on the new user input.
18 . The system of claim 10 , wherein the user interface further receives user input indicating approval of the selected asset allocation, and wherein the processor executes further instructions to automatically initiate implementation of the selected asset allocation in real-time.
19 . A non-transitory, computer-readable storage medium, having embodied thereon a program executable by a processor to perform a method for dynamic asset allocation and visualization, the method comprising:
receiving input from a user via a graphic user interface, the user input specifying a starting asset amount, a minimum acceptable outcome, and a target outcome;
selecting an asset allocation based on the user input, wherein the asset allocation is selected to avoid falling below the minimum acceptable outcome and to maximize the likelihood of meeting the target outcome;
generating a visualization of a plurality of possible outcomes associated with the selected asset allocation over a predetermined time period, wherein the visualization includes:
a plurality of isopercentile lines that each correspond to a predetermined percentage range of the possible outcomes throughout the predetermined time period, and wherein each isopercentile line is at or above the minimum acceptable outcome; and
a histogram comprising a plurality of bars, each bar corresponding to a cumulative likelihood of each of the possible outcomes, wherein the histogram is aligned in accordance with the possible outcomes illustrated by the plurality of isopercentile lines; and
storing the selected asset allocation in a profile associated with a portfolio of the user.