CREATING AND MAINTAINING A PAYOUT-READY PORTFOLIO WITHIN AN INVESTMENT PLAN TO GENERATE A SUSTAINABLE INCOME STREAM

摘要

Financial advisory methods and systems for creating a steady lifetime income stream within an investment plan is provided. According to one embodiment, a feasible, personalized pattern of periodic cash payouts from an investment plan is structured to achieve level annual income during a payout period when combined with other income sources. A mapping is maintained of fixed income investments from a limited universe of financial products available within the investment plan to corresponding constant maturity Treasury bond (CMT) weights. Based on the mapping, a payout program is designed that is expected to generate a stream of income sufficient to fund the cash payouts by determining an appropriate allocation of assets within the investment plan among the fixed income investments. A payout portfolio is formed within the investment plan including holdings in the fixed income investments in accordance with the determined appropriate allocation. The cash payouts are paid to the investor.