Financial Instrument Providing a Guaranteed Growth Rate and a Guarantee of Lifetime Payments

Abstract

A method for providing a financial instrument includes determining an initial account balance associated with a financial instrument based upon an initial deposit amount, wherein the financial instrument includes an account with an account balance that changes over time. The method further includes establishing a first guarantee of a protected value, the protected value including at least an amount based upon the initial account balance growing at a minimum growth rate for a defined period of time or until one or more defined events occur, whichever is sooner; and establishing a second guarantee that a beneficiary may periodically receive a transfer of an amount of money for the life of a designated party, wherein the amount comprises a percentage of the protected value at the time of a particular event, provided that the amount may vary based upon withdrawals from the account in excess of a first particular limit.

1 - 69 . (canceled) 
     
     
         70 . A data processing system configured to manage a financial instrument, the financial instrument guaranteeing, for the life of one or more designated parties, minimum annual withdrawals from a financial account regardless of investment performance of one or more investments selected for the financial account, the guarantee subject to certain conditions defined in the financial instrument, the data processing system comprising:
 one or more processors; and   one or more memory modules, wherein at least one of the one or more memory modules comprises software configured, when executed by the one or more processors, to:
 calculate a protected value, the protected value being at least equal to an account balance of the financial account increasing at a minimum positive growth rate guaranteed under certain conditions by the financial instrument, the account balance determined as of an effective date of the guarantee of the minimum annual withdrawals; and 
 calculate a guaranteed minimum annual withdrawal amount from the financial account as a function of the protected value; 
 calculate a step-up to the protected value based at least in part on an account balance of the financial account as determined on a periodic basis; 
 calculate an increase to the protected value based at least in part on the cumulative total of one or more payments; and 
 calculate a reduction to the protected value in response to a determination that the cumulative total of one or more withdrawals from the financial account for a certain time period exceeds the guaranteed minimum annual withdrawal amount by an excess amount, the reduction to the protected value calculated by the software based at least in part on the excess amount, the certain time period defined in the financial instruments. 
   
     
     
         71 . A data processing system configured to manage a financial instrument, the financial instrument guaranteeing, for the life of one or more designated parties, minimum periodic withdrawals from a financial account regardless of investment performance of one or more investments selected for the financial account, the guarantee subject to certain conditions defined in the financial instrument, the data processing system comprising:
 one or more processors; and   one or more memory modules, wherein at least one of the one or more memory modules comprises software configured, when executed by the one or more processors, to:
 calculate a protected value, the protected value being at least equal to an account balance of the financial account increasing at a minimum positive growth rate guaranteed under certain conditions by the financial instrument, the account balance determined as of an effective date of the guarantee of the minimum periodic withdrawals; and 
 calculate a guaranteed minimum periodic withdrawal amount from the financial account as a function of the protected value. 
   
     
     
         72 . The system of  claim 71 , wherein the period for the guaranteed minimum periodic withdrawal amount is an annual. 
     
     
         73 . The system of  claim 71 , wherein the software is further configured, when executed by the one or more processors, to calculate a step-up to the protected value based at least in part on an account balance of the financial account as determined on a periodic basis. 
     
     
         74 . The system of  claim 71 , wherein the software is further configured, when executed by the one or more processors, to calculate an increase to the protected value based at least in part on the cumulative total of one or more payments. 
     
     
         75 . The system of  claim 71 , wherein the software is further configured, when executed by the one or more processors, to calculate a reduction to the protected value in response to a determination that the cumulative total of one or more withdrawals from the financial account for a certain time period exceeds the guaranteed periodic withdrawal amount by an excess amount, the reduction to the protected value calculated by the software based at least in part on the excess amount, the certain time period defined in the financial instrument. 
     
     
         76 . The system of  claim 75 , wherein the reduction to the protected value is substantially equal to the excess amount. 
     
     
         77 . The system of  claim 71 , wherein the protected value is a minimum guaranteed amount that is available for withdrawal but that is not available as a separate benefit upon the death of the one or more designated parties. 
     
     
         78 . The system of  claim 71 , wherein the effective date of the guarantee of the minimum periodic withdrawals corresponds to an election of the guarantee of the minimum periodic withdrawals, the election of the guarantee of the minimum periodic withdrawals postdating an inception date of the financial instrument. 
     
     
         79 . The system of  claim 71 , wherein the effective date of the guarantee of the minimum periodic withdrawals corresponds to an inception date of the financial instrument. 
     
     
         80 . The system of  claim 71 , wherein the software is further configured, when executed by the one or more processors, to electronically transfer to another account at least a portion of the maximum periodic withdrawal amount. 
     
     
         81 . The system of  claim 71 , wherein the account balance is equal to an initial amount deposited into the financial account. 
     
     
         82 . The system of  claim 71 , wherein the minimum positive growth rate is a fixed rate between four percent and six percent. 
     
     
         83 . The system of  claim 71 , wherein the minimum positive growth rate is a variable rate. 
     
     
         84 . The system of  claim 83 , wherein the minimum positive growth rate is based on a consumer price index. 
     
     
         85 . The system of  claim 71 , wherein an initial account balance of the financial account is based on an account balance from an existing contract. 
     
     
         86 . The system of  claim 71 , wherein the financial instrument provides that the minimum positive growth rate is available at least until there is a withdrawal from the financial account. 
     
     
         87 . A method for managing a financial instrument, the financial instrument guaranteeing, for the life of one or more designated parties, minimum periodic withdrawals from a financial account regardless of investment performance of one or more investments selected for the financial account, the guarantee subject to certain conditions defined in the financial instrument, the method comprising:
 calculating, by one or more processors executing logic, a protected value that is at least equal to an account balance of the financial account increasing at a minimum positive growth rate guaranteed under certain conditions by the financial instrument, the account balance determined as of an effective date of the guarantee of the minimum periodic withdrawals; and   calculating, by one or more processors executing logic, a guaranteed minimum periodic withdrawal amount from the financial account as a function of the protected value.   
     
     
         88 . The method of  claim 87 , wherein the period for the guaranteed minimum periodic withdrawal amount is an annual. 
     
     
         89 . The method of  claim 87 , further comprising calculating, by one or more processors executing logic, a step-up to the protected value based at least in part on an account balance of the financial account as determined on a periodic basis. 
     
     
         90 . The method of  claim 87 , further comprising calculating, by one or more processors executing logic, an increase to the protected value based at least in part on the cumulative total of one or more payments. 
     
     
         91 . The method of  claim 87 , further comprising calculating, by one or more processors executing logic, a reduction to the protected value in response to a determination that the cumulative total of one or more withdrawals from the financial account for a certain time period exceeds the guaranteed periodic withdrawal amount by an excess amount, the reduction to the protected value calculated by the software based at least in part on the excess amount, the certain time period defined in the financial instrument. 
     
     
         92 . The method of  claim 91 , wherein the reduction to the protected value is substantially equal to the excess amount. 
     
     
         93 . The method of  claim 87 , wherein the protected value is a minimum guaranteed amount that is available for withdrawal but that is not available as a separate benefit upon the death of the one or more designated parties. 
     
     
         94 . The method of  claim 87 , wherein the effective date of the guarantee of the minimum periodic withdrawals corresponds to an election of the guarantee of the minimum periodic withdrawals, the election of the guarantee of the minimum periodic withdrawals postdating an inception date of the financial instrument. 
     
     
         95 . The method of  claim 87 , wherein the effective date of the guarantee of the minimum periodic withdrawals corresponds to an inception date of the financial instrument. 
     
     
         96 . The method of  claim 87 , further comprising electronically transferring, by one or more processors executing logic, to another account at least a portion of the maximum periodic withdrawal amount. 
     
     
         97 . The method of  claim 87 , wherein the account balance is equal to an initial amount deposited into the financial account. 
     
     
         98 . The method of  claim 87 , wherein the minimum positive growth rate is a fixed rate between four percent and six percent. 
     
     
         99 . The method of  claim 87 , wherein the minimum positive growth rate is a variable rate. 
     
     
         100 . The method of  claim 99 , wherein the minimum positive growth rate is based on a consumer price index. 
     
     
         101 . The method of  claim 87 , wherein an initial account balance of the financial account is based on an account balance from an existing contract. 
     
     
         102 . The method of  claim 87 , wherein the financial instrument provides that the minimum positive growth rate is available at least until there is a withdrawal from the financial account.