JANUARY 13, 2022 (NewsRx) — By a
No assignee for this patent application has been named.
The news editors got the following quote from the background information provided by the inventors: “Financial independence is a topic on the minds of many people: whether you’re a millennial or a baby boomer, the ability to Making sure you have enough money to last a lifetime is a major source of stress for most people.Although people have tried using budgeting, financial advisors, and self-directed investing, it doesn’t There is no single holistic framework that connects the key elements of a person’s financial health: expenses and income, assets and liabilities, from the perspective of today and tomorrow’s years as a dashboard for future actions Due to fragmentation, many individuals tend to operate blindly, without context (e.g. how much money do they need in retirement) with disparate data (bank and brokerage statements), The services provided to ind ividus are either online with few personalized contacts or personalized by the individuals who can be paid to sell more expensive products compared to the same performance but less lucrative ones. By running a methodology such as personal profitability, an individual is able to understand their current financial situation, as well as identify actions they may need to take in the future. They will have the context and metrics to create transparency about how financial actions are helping or hindering their personal bottom line. »
In addition to general information about this patent application, NewsRx correspondents also obtained the inventor’s summary information for this patent application: “By providing a methodology, processes, and framework, an individual would be able to understand and to control its “profitability” in an integrated way. Using the personal balance sheet, monthly cash flow, and multi-year forecast view, the methodology integrates the important elements of an individual’s financial needs over time to present the individual’s performance against their future goals through reports on actuals and forecasts. future results. It is tied to and ties together what were once fragmented elements of an individual’s financial plan: assets, liabilities, and cash flows.
“The purpose and benefits of the system would be to allow the individual to make the necessary adjustments in their spending and investment decisions based on their goals, incomes and expenses over a period of years in as events based on its actual numbers and forecasts. Personal Profitability Analyzes allow the individual to view and monitor the impacts income, expenses and savings have on their overall financial health now and in the future using the Personal Monthly Cashflow Mode, Personal Balance Sheet and multi-year forecasts. Maintaining the integrity of analytics requires active foresight based on the concepts of risk, opportunity, provision, and task.
The claims provided by the inventors are:
“1. A methodology called Personal Monthly Cash Flow which consists of a list of the major categories that make up Expenses (fixed and variable), Income and After-Tax Income, summarized with a total of Net Income (After-Tax Income minus total expenses) on a monthly basis.
“2. The methodology of claim 1, in which actual numbers are recorded for past months, and forecast numbers are ‘pencilized’ for future months for each line item, totaling a full year forecast for future months. Main categories of line items listed under expenses, income, and after-tax income.
“3. Methodology according to claim 1, in which the fixed expenses are the expense items that automatically arise each month, such as mortgages, rent, utilities, telephone bills, car payments, insurance health and insurance premiums.
“4. Methodology according to claim 1, wherein variable expenses represent expenses that are within the control of the individual and can generally be tracked by a payment method such as cash or credit/debit cards in categories specific items such as food, clothing and entertainment within the month. Bank statements.
“5. Methodology according to claim 1, wherein together, the fixed and variable expenses represent an individual’s total expenses per month for the full year (actual and forecasted).
“6. Methodology according to claim 1, in which the total income is composed of line items such as salary, dividends and interest income where both actual and forecast figures are recorded by month by category of line item.
“7. The methodology of claim 1, wherein after-tax income is calculated, by applying a tax rate to pre-tax income to calculate an after-tax income number, which is included on a separate line as income after tax depending on the tax treatment of the property.
“8. The methodology of claim 1, wherein the net income number is the difference between total expenses (fixed plus variable) and the after-tax income number, calculated for both actual and forecast months and maintained for any the year.
“9. A methodology called personal balance sheet records all assets and liabilities resulting in a total net worth, which is updated monthly to show the actual net worth count for the month.
10. The methodology of claim 9, wherein under Assets, categories include line items such as Cash and Cash Equivalents, Investment Accounts, and Real Estate.
“11. Under Investments, according to claim 10, would include items such as brokerage accounts, 401ks and IRA accounts.
“12. The methodology of claim 7, wherein under liabilities, the line items would include the current total outstanding value for all loans and debt securities such as student loans, mortgages, credit card debt, car loans, etc. listed separately.
“13. Methodology according to claim 9, wherein the net worth number is calculated as total assets minus total liabilities and represents the total net worth of the individual on a monthly basis for the full calendar year, the actuals and forecasts.
“14. A so-called multi-year forecasting methodology as claimed in claim 1, wherein the analysis represents the same categories of monthly cash flow line items but on an annual basis, to provide a multi-year view of net income for each year through at death.
“15. The methodology of claim 14, wherein the same line item categories, calculations and actuals for monthly cash flow analysis would be linked to the corresponding year in the multi-year forecast.
“16. A methodology according to claim 14, in which actual numbers are recorded for past months, and a forecast number is “entered” for future months for each line item, totaling a full year forecast for major categories line items listed under expenses, income, and after-tax income for each year until death.
“17. The methodology of claim 9, wherein the personal balance sheet net worth number is tied to the multi-year forecast in that personal balance sheet assets may be available to meet any financial shortfalls in future years. by sale/liquidation.
“18. A methodology in which the multi-year forecast would include assumptions for known changes in the forecast, such as retirement (salary would cease),
“19. Methodology according to claims 1, 9 and 14, in which the management of Risks, Opportunities, Provisions and Tasks represents the 4 categories of possible events which would modify the forecasts of the Personal Balance Sheet, Monthly Cash How, or Mufti -Year Forecast.
“20. Methodology according to claims 1, 9 and 14, in which the risks represent events likely to occur which negatively affect and require adjusting one’s forecast of the personal balance sheet, the monthly cash flow and the multi-year forecast, which allow the individual to incorporate these risks into their forecasts.
“21. Methodology according to claims 1, 9 and 14, in which the Opportunities are events likely to occur which positively affect a person’s forecast figures of the Personal Balance Sheet, the Monthly Cash Flow Comment and the Mufti-Year Forecast, and are often tied to savings or increases in income such as a bonus or inheritance.
“22. Methodology according to claim 21, in which the opportunities would be affected in the personal balance sheet, the monthly cash flow and the multi-year forecast.
“23. Methodology according to claims 1, 9, 14, in which tasks are when an individual creates an additional goal beyond what is documented in the personal balance sheet, monthly cash flow and multi-year forecast, such as desire to pay for a child’s college tuition.
“24. Methodology, according to claim 23, in which task elements would be affected in the personal balance sheet, the monthly cash flow and the multi-year forecast.
“25. Methodology according to claims 1, 9, 14, wherein provision items represent assets that have not yet been tagged with a purpose but can be used for major expenses such as vacations without disrupting the plan documented and ongoing personal, monthly balance sheet Cash How and multi-year forecasts.
“26. Methodology according to claim 25, in which the provision elements would be affected in the personal balance sheet, the monthly cash flow and the multi-year forecast.
“27. Methodology according to claims 1, 9, 14, wherein once the above framework and analyzes are supplemented with actual and forecasted numbers, the individual can plan how to cover net income or value discrepancies current and future net worth through changes in spending, saving and investing as part of their overall strategy with the ability to monitor changes in actual and forecast numbers from all three analytics.
For more information on this patent application, see: Park, Grace. Personal profitability. Class
(Our reports provide factual information on research and discoveries around the world.)