System for the operation and management of one or more financial accounts through the use of a digital communication and computation system for exchange, investment and borrowing
A practical communication and computer based system and method for effecting exchange, investment and borrowing involves the use of digital communication and computation terminals distributed to users and service providers. Through the system described and its combined computer and communication terminals, client/customers may purchase goods and services, save, invest, track bonuses and rebates and effect enhanced personal financial analysis, planning, management and record keeping with less effort and increased convenience. Through a prioritization function, the client specifies her financial objectives, her risk preference, and budgetary constraints. The prioritization function automatically suggests to the individual a portfolio of asset and liability accounts that may be credited and/or debited to provide the required funds for consumption and to form investments and borrowing to best realize her financial objectives over a defined time horizon. If desired, the system automatically manages a client's budgetary and financial affairs through a system of expert sweeps based on a client's preferences. The client's accounts are monitored via a borrowing power baseline, and considered imbalanced if the client's borrowing power is less than the minimum borrowing power. If the account is imbalanced, the client may reallocate the assets and liabilities within the client account and/or modify a set of constraints on the client account. If the client account is still not balanced after modification of the account, the system will deny authorization for certain requested transactions, and may initiate the liquidation of certain asset accounts and reduce the balances of one or more liability accounts.
CROSS-REFERENCE TO RELATED APPLICATION
This is a continuation of application Ser. No. 08/350,442, filed Dec. 6, 1994, now U.S. Pat. No. 5,644,727, which is a continuation-in-part of application Ser. No. 07/780,590, filed Oct. 23, 1991, abandoned, which is a continuation-in-part of application Ser. No. 07/686,319, filed Apr. 16, 1991 which is a continuation of application Ser. No. 07/408,173, filed Sep. 15, 1989, now abandoned, which is a continuation of application Ser. No. 07/038,817, filed Apr. 15, 1987, now U.S. Pat. No. 4,953,085.
The invention relates to financial products that provide a return that is a function of future sales/revenues, preferably gross sales/revenue, over a specified period of time. One embodiment of a method for creating such a financial product includes providing standard forms to an issuer and underwriter and standard terms to an issuer and investors. The terms to the issuer include providing capital to the issuer in exchange for a return that is a function of future sales over a specified period of time. The process further includes creating instruments representing investment in the financial product. The process creates the instruments in sufficient numbers and in appropriate denominations to facilitate trading in the financial product.
A computer implemented method of providing a client with an integrated financial management account, including receiving application data for an integrated financial management account and setting up the integrated financial account with a loan component data, an investment component data, and an insurance component, all associated with an account file. Thereby qualifying the client for a loan in the loan component of the integrated financial management account and associating the qualification information with the account file, disbursing the proceeds of the loan component into the investment component by recording a proceed value in the investment component data associated with the account file, and purchasing investment assets using the proceeds of the loan component and associating purchased investment assets to the investment component data associated with the account file.
A method and system for determining a useful life of financial instruments, such as financial assets and liabilities. A dynamic calculation of a first retention rate is performed for each of several financial assets; a steady-state calculation of a second retention rate is performed for the financial assets; and the first and second retention rates are combined to determine a predicted useful life of the combined financial assets.Optionally, one of several variables affecting at least one of the retention rates is selected. A sensitivity of financial asset variables to other financial asset variables is determined. Scenarios are forecast, extrapolated from the retention rate. The financial assets may include deposits and/or financial instruments. Outliers in the financial assets may be checked, in one variation of the invention. Exogenous variables may be included in at least one of the calculations. The exogenous variables are selected from the set including seasonal variables, day-of-the-month variables, treasury interest rates, deposit rates, local unemployment rate, local personal income, and local retail sales, and the like. Interest rate spread may be included in at least one of the calculations. Forecast scenarios may include future values for use in at least one of the calculations. The future values may be selected from the set including forecast treasure rates, forecast horizon, forecast deposits, forecast retention rates, and forecast interest rates, and the like.
A communication system for transmitting accounting instructions has central and decentralized devices. Accounting instructions input by individual users at the decentralized devices are checked for authenticity and retransmitted to the central devices to be processed. According to the invention, the communication system has at least virtually networked devices, means of an independent second communication system (2) with stationary devices (21, 22/1, 22/2) and portable communication transmitters (23) which communicate therewith in an encrypted manner. The stationary devices (21, 22/1, 22/2) of the second communication system (2) may be at least temporarily connected to the central devices (11) of the first communication system (1). Accounting instructions given by individual users with the portable communication transmitters (23) of the second communication system (2) can be previously authenticated in one of the central devices (11) of the first communication system. A previously authentified encrypted accounting code can be stored at least temporarily in the portable communication transmitters (23) of the second communication system (2); and the previously authentified, encrypted accounting codes can be transmitted to a decentralized device (12/1 to 12/3) of the first communication system independently of the first and second communication systems (1, 2) to conclude the accounting operation.
A method for restructuring the debt of a debtor who has an interest in a distressed property by a third party including the steps of comparing a present appraised value of the property to a total cost for purchasing the property from the debtor by the third party, satisfying the personal debt of debtor by the third party, and reselling the property back from the third party to the debtor based upon a present appraised value of the property, and if the present appraised value of the property exceeds the total cost to the third party by a preselected value then the third party purchases the property from the debtor, satisfies the personal debt of the debtor and resells the property back to the debtor at the present value of the property.
