Importance

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Abstract

An investment method provides a predictable monthly income to a retiree or other investor while increasing asset growth potential and decreasing the likelihood that assets will need to be sold during market downturns. The method may be implemented by computer equipment and computer programs operated by an investment services provider. Funds are first received from an investor and used to purchase assets for a Growth Component and an Income Protection Component. The assets in the Growth Component are invested primarily in growth-oriented investments, and the assets in the Income Protection Component are invested primarily in income-oriented investments. The investor may be paid distributions from the Income Protection Component. As the Income Protection Component is depleted through the payment of the distributions, it is periodically replenished by selling assets from the Growth Component. To minimize the likelihood that assets will be sold from the Growth Component during down markets, the amount of assets sold from the Growth Component is based at least partially on the rate of return of the Growth Component and may also be based on the state of the Income Protection Component.

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First Claim