System for managing financial accounts by reallocating funds among accounts

Claim 2

A computer-based system for operating at least one client financial account, each said client account comprising a plurality of sub-accounts including at least one asset and one liability, comprising: processing means; memory means connected to said processing means for storing information pertaining to the financial account(s); means for storing in a database in said memory means information concerning each financial account; means cooperating with said processing means for investing funds received in said accounts in said assets; means cooperating with said processing means for calculating a borrowing power for each said client account by calculating for each asset in the account an asset loan value equal to the product of an asset account value and a loan to value ratio, summing such asset loan values and deducting all liabilities; means cooperating with said processing means for establishing a minimum borrowing power for each said client account; means cooperating with said processing means for recalculating the client account's borrowing power when a change occurs in at least one sub-account; means cooperating with said processing means for comparing the recalculated borrowing power with the minimum borrowing power; means cooperating with said processing means for indicating an account imbalance to a user of the system if the client account's borrowing power is less than the minimum borrowing power; and means cooperating with said processing means for automatically allocating funds between said asset and liability sub-accounts to correct the account imbalance.

Claim 3

The computer-based system of claim 1 wherein a computer based optimization function using a designated set of economic and financial variables illustrative of a client's financial objectives and a set of constraints on his client account is implemented to suggest an optimum combination of the assets and liabilities.

Claim 4

The computer-based system of claim 1 further comprising: means cooperating with said processing means for calculating an expected borrowing power for each client account at some time in the future; means cooperating with said processing means for comparing the expected borrowing power calculated for each client account to a forecasted minimum for that account at that future time; and computer means for reporting the relationship of the expected borrowing power to the forecasted minimum.

Claim 5

A computer-based financial system comprising: at least one client account on said computer system, each client account comprising a loan secured by a mortgage on a home, and at least one more asset or liability; means cooperating with said processing means for investing funds received in said client account(s) in said assets or liabilities; means cooperating with said processing means for calculating a net asset value for the account equal to the value of any assets including the home less any liabilities including the loan; means cooperating with said processing means for comparing the net asset value for the account with a minimum net asset value established for that account; means cooperating with said processing means for calculating an expected net asset value at some time in the future for the assets including the home and the liabilities including the loan; means cooperating with said processing means for comparing the expected net asset value to a forecasted minimum net asset value established for that account for that future time; means cooperating with said processing means for indicating an account imbalance to a user of the system if the client account's net asset value is less than the forecasted minimum net asset value; and means cooperating with said processing means for automatically allocating funds between said assets and liabilities to endeavor to correct the account imbalance.

Claim 6

A computer-based financial system comprising: at least one client account on said computer system, each client account comprising a loan secured by a mortgage on a home, and at least one more asset or liability; means cooperating with said processing means for investing funds received in said client account(s) in said assets or liabilities; means cooperating with said processing means for calculating a net asset value for the account equal to the value of any assets including the home less any liabilities including the loan; means cooperating with said processing means for comparing the net asset value for the account with a minimum net asset value established for that account; means cooperating with said processing means for calculating an expected net asset value at some time in the future for the assets including the home and the liabilities including the loan; means cooperating with said processing means for comparing the expected net asset value to a forecasted minimum net asset value established for that account for that future time; means cooperating with said processing means for indicating an account imbalance to a user of the system if the client account's net asset value is less than the forecasted minimum net asset value; and means cooperating with said processing means for automatically allocating funds between said assets and liabilities to endeavor to correct the account imbalance.

Claim 7

The financial system of claim 4 further comprising means cooperating with said processing means for using funds received in said account to pay interest on the loan and to increase the value of the assets instead of amortizing the mortgage.

Claim 8

The financial system of claim 4 wherein a computer-based optimization function using a designated set of economic and financial variables illustrative of a client's financial objectives and a set of constraints on his client account is implemented to suggest an optimum combination of the mortgage, assets and liabilities.

Claim 9

A financial system for storing, processing and reporting information relating to at least one client account, each client account comprising a loan secured by a mortgage on a home, and at least one more asset or liability, comprising: processing means; a memory means for storing information pertaining to the client account(s); input/output means for the entry of data into said system and the retrieval of data therefrom; means for storing in a database in said memory information relating to each client account including the value of the home and the amount of the loan and said one more asset or liability; means cooperating with said processing means for calculating, for each client account, from information stored in the database a borrowing power for each client account, said borrowing power being equal to the sum of the product of a value of each asset and an asset to loan value ratio, added to the product of a value of the home and a home loan to value ratio less any liabilities including any mortgage balance that may be present in the client account; means cooperating with said processing means for comparing the borrowing power calculated for the client account to a minimum borrowing power established for that account; means cooperating with said processing means for calculating an expected borrowing power for the client account at some time in the future; means cooperating with said processing means for comparing the expected borrowing power calculated for the client account to a forecasted minimum borrowing power for that account at that future time; means cooperating with said processing means for indicating an account imbalance to a user of the system if the client account's borrowing power is less than the minimum borrowing power or if the client account's expected borrowing power is less than the forecasted minimum borrowing power; and means cooperating with said processing means for automatically allocating funds between said asset and liability accounts to correct the account imbalance.

Claim 10

A financial system for storing, processing and reporting information relating to at least one client account, each client account comprising a loan secured by a mortgage on a home, and at least one more asset or liability, comprising: processing means; a memory means for storing information pertaining to the client account(s); input/output means for the entry of data into said system and the retrieval of data therefrom; means for storing in a database in said memory information relating to each client account including the value of the home and the amount of the loan and said one more asset or liability; means cooperating with said processing means for calculating, for each client account, from information stored in the database a borrowing power for each client account, said borrowing power being equal to the sum of the product of a value of each asset and an asset to loan value ratio, added to the product of a value of the home and a home loan to value ratio less any liabilities including any mortgage balance that may be present in the client account; means cooperating with said processing means for comparing the borrowing power calculated for the client account to a minimum borrowing power established for that account; means cooperating with said processing means for calculating an expected borrowing power for the client account at some time in the future; means cooperating with said processing means for comparing the expected borrowing power calculated for the client account to a forecasted minimum borrowing power for that account at that future time; means cooperating with said processing means for indicating an account imbalance to a user of the system if the client account's borrowing power is less than the minimum borrowing power or if the client account's expected borrowing power is less than the forecasted minimum borrowing power; and means cooperating with said processing means for automatically allocating funds between said asset and liability accounts to correct the account imbalance.

Claim 11

The system of claim 7 further comprising means cooperating with said processing means for using said computer system to allocate funds received in said account to pay interest on the loan and to increase the value of the assets instead of amortizing the mortgage.

Claim 12

In combination with a computer-based system for processing and supervising a plurality of client accounts at an institution providing financial services or financial processing, each of which comprises a plurality of financial accounts comprising at least one asset account and one liability account and a liability secured by a mortgage on at least one home and one or more asset accounts; processing means; memory means connected to said processing means for storing data files and information pertaining to the client accounts; terminal means connected to the processing means for input and output of information relating to the client accounts including data relating to values in each client account's asset account(s), liability account(s), and any liability secured by a mortgage; means cooperating with said processing means for establishing for each client account a present borrowing power and an expected future borrowing power; means cooperating with said processing means for allocating funds received in mortgage payments for a client account to pay interest on the liability secured by the mortgage in said client account with at least a portion of the remainder of funds received being used to increase an asset account in said client account rather than amortize the liability secured by the mortgage; means cooperating with said processing means for checking that a present borrowing power and an expected future borrowing power for each client account is at least equal to respectively a minimum present borrowing power and minimum future borrowing power specified for that client account by the institution; means cooperating with said processing means for indicating an account imbalance to a user of the system if the client account's borrowing power is less than the minimum borrowing power or if the client account's expected future borrowing power is less than the minimum future borrowing power; and means cooperating with said processing means for automatically allocating funds between said asset and liability accounts to endeavor to correct the account imbalance.

Claim 13

In combination with a computer-based system for processing and supervising a plurality of client accounts at an institution providing financial services or financial processing, each of which comprises a plurality of financial accounts comprising at least one asset account and one liability account and a liability secured by a mortgage on at least one home and one or more asset accounts; processing means; memory means connected to said processing means for storing data files and information pertaining to the client accounts; terminal means connected to the processing means for input and output of information relating to the client accounts including data relating to values in each client account's asset account(s), liability account(s), and any liability secured by a mortgage; means cooperating with said processing means for establishing for each client account a present borrowing power and an expected future borrowing power; means cooperating with said processing means for allocating funds received in mortgage payments for a client account to pay interest on the liability secured by the mortgage in said client account with at least a portion of the remainder of funds received being used to increase an asset account in said client account rather than amortize the liability secured by the mortgage; means cooperating with said processing means for checking that a present borrowing power and an expected future borrowing power for each client account is at least equal to respectively a minimum present borrowing power and minimum future borrowing power specified for that client account by the institution; means cooperating with said processing means for indicating an account imbalance to a user of the system if the client account's borrowing power is less than the minimum borrowing power or if the client account's expected future borrowing power is less than the minimum future borrowing power; and means cooperating with said processing means for automatically allocating funds between said asset and liability accounts to endeavor to correct the account imbalance.

Claim 14

A computer system for operating a plurality of client financial accounts comprising: processing means; memory means connected to said processing means for storing information pertaining to the client financial accounts; means for maintaining in said memory means a database comprising for each client account at least one investment asset account which receives funds for investment purposes and has an account balance that is periodically updated and at least one liability account including a loan secured by a lien on a residence; means cooperating with said processing means for determining for each client financial account a preferred allocation of funds received in said financial account to said investment asset account(s) and said liability account(s); means for storing in said memory means for each client financial account the preferred allocation of funds received; means cooperating with said processing means for allocating funds received for the benefit of a client account to pay interest on the loan with at least a portion of the remainder of funds received being used to increase an asset account or pay down a liability account in said client account rather than amortize the liability secured by the mortgage; means cooperating with said processing means for calculating a new borrowing power for said financial account by calculating for at least said residence an asset loan value equal to the product of the value of the residence and a loan to value ratio at some time subsequent to establishment of the loan; and means cooperating with said processing means for comparing the new borrowing power with the amount of the loan; and if the new borrowing power exceeds the amount of the loan then increasing the loan and if the new borrowing power is less than the amount of the loan then decreasing the loan, so that the loan does not exceed said new borrowing power.

Claim 15

A computer system for operating a plurality of client financial accounts comprising: processing means; memory means connected to said processing means for storing information pertaining to the client financial accounts; means for maintaining in said memory means a database comprising for each client account at least one investment asset account which receives funds for investment purposes and has an account balance that is periodically updated and at least one liability account including a loan secured by a lien on a residence; means cooperating with said processing means for determining for each client financial account a preferred allocation of funds received in said financial account to said investment asset account(s) and said liability account(s); means for storing in said memory means for each client financial account the preferred allocation of funds received; means cooperating with said processing means for allocating funds received for the benefit of a client account to pay interest on the loan with at least a portion of the remainder of funds received being used to increase an asset account or pay down a liability account in said client account rather than amortize the liability secured by the mortgage; means cooperating with said processing means for calculating a new borrowing power for said financial account by calculating for at least said residence an asset loan value equal to the product of the value of the residence and a loan to value ratio at some time subsequent to establishment of the loan; and means cooperating with said processing means for comparing the new borrowing power with the amount of the loan; and if the new borrowing power exceeds the amount of the loan then increasing the loan and if the new borrowing power is less than the amount of the loan then decreasing the loan, so that the loan does not exceed said new borrowing power.

Claim 16

The system of claim 10 wherein the means cooperating with said processing means for determining a preferred allocation comprises means for performing a client risk preferred analysis.

Claim 17

The system of claim 10 wherein the means cooperating with said processing means for determining a preferred allocation comprises means for establishing account constraints such as minimum imposed account balances, minimum imposed net cash flow, and minimum imposed borrowing power.

Claim 18

The system of claim 10 wherein the means cooperating with said processing means for determining a preferred allocation comprises means for forecasting values for future economic and account variables.

Claim 19

The system of claim 10 wherein the means cooperating with said processing means for determining a preferred allocation comprises: means for performing a client risk preference analysis; means for establishing account constraints such as minimum imposed account balances, minimum imposed net cash flow, and minimum imposed borrowing power; means for forecasting values for future economic and account variables; and means for utilizing a computer-based optimization function to generate an allocation of said investment asset account(s) and said liability account(s) based on said client risk analysis, account constraints and forecasted economic and account variables.

Claim 20

The system of claim 10 further comprising means cooperating with said processing means for allocating funds received to said investment asset accounts or said liability accounts or both.

Claim 21

The system of claim 10 further comprising: means cooperating with said processing means for redetermining a preferred allocation of funds received in said financial account to said investment asset account(s) and said liability account(s) after modifying the amount of the loan; and means cooperating with said processing means for allocating said funds to pay interest on the loan and then according to said redetermined allocation of said funds.