AU2017101325A4 - A Calculating System or Method for Generating on Output Displays Curves Related to Ages of Retirement with Financial Freedom Based on Current Constraints and Action Planning - Google Patents

Abstract

Abstract The present invention relates to an calculating device comprising an input device, a processor and a display for displaying curves. The curves is generated with the method comprising the steps of: receiving personal financial data from a user, wherein the personal financial data comprising: one or more of incomes, one or more expenses, and birthdate or age; generating a first curve on the display, wherein the first curve having a first retirement age as a maxima of the first curve; generating a second curve on the display, wherein the second curve having an improved retirement age a maxima of the second curve. The first curve is superimposed with the second curve, and the first age of retirement is less than the improved age of retirement. c- e - - , (n n o -o a o S a 0t Figure 4

Description

A CALCULATING SYSTEM OR METHOD FOR GENERATING ON OUTPUT DISPLAYS CURVES RELATED TO AGES OF RETIREMENT WITH FINANCIAL FREEDOM BASED ON CURRENT CONSTRAINTS AND ACTION PLANNING

TECHNICAL FIELD

[0001] The present invention relates to a calculating system or method calculating retirement age, and more specifically to a system or method for generating, on output displays, curves related to ages of retirement with financial freedom based on current constraints and action planning. BACKGROUND.

[0002] Calculating retirement with financial freedom is a complex task. There are numerous variables which can affect the retirement age with financial freedom, including retirement income adequacy, investment strategy, contributions strategy, legacy strategy, transition to retirement strategy, and insurance. These variables may change on a daily basis. In the calculation, it also requires extrapolating historical data of different aspect of local and global economy.

[0003] A typical traditional method is to recommend that a retiree annually spends a fixed, real amount equal to 4% of his initial wealth, and rebalance the remainder of his money in a 60%-40% mix of stocks and bonds throughout a 30-year retirement period. Confidence in the plan is often expressed as the probability of its success, e.g., in nine of ten scenarios, the retiree will sustain his or her spending. Modifications to this basic example include changing the amount to withdraw, the length of the plan, the portfolio mix, the rebalancing frequency, or the confidence level.

[0004] Traditionally, financial planners have estimated a particular retiree's annual spending budget using a mortgage calculating device, an estimate of the average rate of return on the retiree's investments, and the retiree's horizon—the number of years that a retiree's investments had to support his spending.

[0005] These mortgage calculating devices are not designed to cater for retirement planning. In particular, it does not really take into consideration of the different certainties in a particular strategy. Further, to include a cost of living increase, the planner would adjust the average nominal investment return downwards by an estimate of the average inflation rate and compute the real spending. Traditional models for these types of calculating devices fail to account for uncertainty and assume 50/50 static uncertainty model. This is a fundamental failure of these systems, as users may want to adjust the level of uncertainty to improve the overall accuracy of the results. Traditional models fail to calculate for variable or user determined levels of uncertainty.

[0006] Moreover, the traditional calculating device has pre-assumed an age of retirement and a fixed number of years in the retirement period. Further, there is no graphic representation comparing the different sets retirement saving / retirement age based on different investment strategies.

[0007] A previous example of a calculating device is described in the "Retirement Income Calculating device" (T. Rowe Price 2008b), where the monthly returns are assumed to be jointly normal. The calculating device automatically accounts for minimum required distributions after age 70.5, attempts to decrease equity exposure every five years, and yearly inflates withdrawals by 3%. For a single retiree starting retirement at age 65, having a 30-year horizon, beginning with a $1 million portfolio, investing initially in a 60% equity mix ("portfolio E"), and withdrawing $3.3K per month, the withdrawal rate is 3.96%, and the calculating device predicts a 90% success rate. However, there is no simulation or advice on how the user can improve the age of retirement with financial freedom. This prior art calculating device also does not provide an optimal strategy in a particular scenario.

[0008] US Patent Application No 8,370,243 discloses a simulator to help individuals on financial planning and investment issues. In particular, this prior art aids in the evaluation of the relative risks and rewards of a mixed portfolio compared to a safer alternative and to choose an asset allocation. This simulator models the baseline portfolio as being entirely allocated to low-risk asset, the mixed portfolio as having assets that are subdivided between the low-risk assets and comparatively more volatile assets, and retirement budgets drawn from the mixed portfolio with computer-performed computations that constrain the size of each interval's retirement budget as a function of a remaining balance of the mixed portfolio. The simulator receives at least one simulated portfolio performance outcome, generated by computer-performed computations that are a function of the modelled retirement budgets drawn from the mixed portfolio; receives a baseline portfolio performance outcome that is a function of computer-performed computations of a baseline retirement budget drawn from the baseline portfolio, to compare with the simulated portfolio performance outcome; and publishes, on a graphical user interface, both the simulated portfolio performance outcome and the baseline portfolio performance outcome in proximity to each other to facilitate comparative visualization of the performance outcomes. However, this simulation did not calculate the age when the user is able to achieve financial freedom.

[0009] US Patent Application No. 20170200126 disclosed a system for calculating employee retirement optimization. The system had an optimization computer comprising processors for accessing data from one or more retirement plan participants and derive, based on the accessed data, a hierarchy of proposals to maximize one or more features of the retirement account and to transmit such a derived hierarchy. A remote device configured to receive the hierarchy of retirement proposals and to generate in response to the transmission, a plurality of graphical elements, each graphical element corresponding to a particular strategy, whereby upon selection of a particular element by a user, an instruction set is generated and sent via a communication channel to a retirement account computing device. There is further provided a retirement account computing device configured by one or more processors executing code therein to receive the generated instruction set and to implement a change in one or more data values corresponding to the participant that initiated the instruction transmission. However, this simulation did not calculate the age when the user is able to achieve financial freedom.

[0010] US Patent Application No. 20150178843 discloses a method for interactive retirement planning includes displaying a landing page that includes a topic dashboard on a mobile device. The topic dashboard depicts topic identifiers, and each topic identifier is an element of a retirement plan. A first user input identifying a selected topic identifier within the topic identifiers is received. A topic information page relating to the selected topic identifier is selected. The topic information page includes interactive content relating to the element of the retirement plan that corresponds with the selected topic identifier. The topic information page including the interactive content relating to the element of the retirement plan is displayed to the user on the mobile device. In response to receiving a second user input, the interactive content related to the element of the retirement plan that is displayed to the user is modified to reflect a user preference corresponding with the second user input.

[0011] Australian Patent No. 629173 disclosed a computer method for producing a visual representation of a curve image from a set of control points which defined the curve and which are input for each dimension and a number of intervals of the curve to be computed. . There was disclosed a formula applied to achieve an end, the production of the improved curve image. As this was a method of producing that by computer, the Federal Court ruled that it was a subject matter entitled to the protection of the patent laws.

[0012] Previous attempts at these types of calculating device have failed to allow for a fast transformation of financial data to a first curve for ordinary retirement age and a second curve for an improved retirement age superimposed on the first curve.

[0013] Any discussion of the prior art throughout the specification should in no way be considered as an admission that such prior art is widely known or forms part of common general knowledge in the field.

SUMMARY

[0014] It is, therefore, an object of the present invention to provide an electronic calculating device for fast transformation of financial data of a user to a first curve for ordinary retirement age and a second curve for an improved retirement age superimposed on the first curve.

[0015] Other objects and advantages will become apparent when taken into consideration with the following specification and drawings.

[0016] It is also an object of the present invention to overcome or ameliorate at least one of the disadvantages of the prior art, or to provide a useful alternative. It is a first aspect of the present invention to provide an calculating device comprising an input device, a processor and a display for displaying curves, wherein the curves is generated with the method comprising the steps of: receiving personal financial data from a user, wherein the personal financial data comprising: one or more of incomes, one or more expenses, and birthdate or age; generating a first curve on the display, wherein the first curve having a first retirement age as a maxima of the first curve; generating a second curve on the display, wherein the second curve having an improved retirement age a maxima of the second curve; such that the first curve is superimposed with the second curve, and the first age of retirement is less than the improved age of retirement.

[0017] Preferably, the maxima is derived with the date of birth or current age and a period t, where in

Where:

Target amount = 5% of current annual expenses FVannunity — Target amount Ct = Regular Contribution t = number of period P = Starting Cash [0018] Preferably, in the method further comprises the step of receiving property data from the user, wherein the property data comprises one or more of an identification of a property, a purchase price of the property, a purchase date of the property, a mortgage status of the property, and an current value of the property.

[0019] Preferably, the method further comprises the step of receiving equity data from the user, wherein the equity data comprises one or more of an identification of equity, a current price of the equity, and an number of unit of the equity owned by the user.

[0020] Preferably, the improved age is derived from an action plan directing the user to carry out one or more of the actions, including purchasing an asset, and selling an asset.

[0021] Preferably, the action plan comprising one or more action data including identifications of assets to purchases, dates of the purchases of the assets, identification of assets to sell, and the dates of the sale of the assets.

[0022] Preferably, the method comprises the step of displaying an interface with one or more question for the user to answer, such that each answer the user provided will have a risk value assigned, and stored in the calculating device.

[0023] Preferably, the method comprises the step of providing an interface for the user to select an investment preference from an option of property only, an option of shares only, and an option of no preference.

[0024] Preferably, the processor will assess the risk point and investment preferences of the user, such that a risk agreement will be displayed for user to review and accept by clicking an user interface in the event that the risk point is below a threshold and the investment preference is equal to the option of property only.

[0025] Preferably, the action plan is generated according to the risk point and the investment preference of the user.

BRIEF DESCRIPTION OF THE FIGURES

[0026] Figure 1 is a schematic diagram of a calculating system generating, on output displays, curves related to ages of retirement with financial freedom based on current constraints and action planning in an embodiment of the present invention; [0027] Figure 2 is a schematic diagram of a calculating device 10 of the system of Figure 1; [0028] Figure. 3 is a schematic diagram of a process for a new user to generate a graphical representation for attaining the age of financial freedom execute in the system of Figure 1; [0029] Figure. 4 is a schematic diagram of a Dash Board style Interface for the system of Figure 1; [0030] Figure 5 is a schematic diagram of a process for an existing user to update and generate a new graphical presentation for attaining the age of financial freedom executed in the system of Figure 1; [0031] Figure 6 is a schematic diagram of a Financial Plan Interface for the system of Figure 1; [0032] Figure 7 is a schematic diagram of a process for generating a curve for the age of retirement executed in the system of Figure 1; [0033] Figure 8 is a schematic diagram of a Registration Interface of the system of Figure 1; [0034] Figure 9 is a schematic diagram of an Income and Saving Interface of the system of Figure 1; [0035] Figure 10 is a schematic diagram of a process for generating a graphical presentation for an improved age of financial freedom executed in the system of Figure 1; [0036] Figure 11 is a schematic diagram of a Property Interface of the system of Figure 1; [0037] Figure 12 is a schematic diagram of a Equity Interface of the system of Figure 1; and [0038] Figure 13 is a schematic diagram of a process for generating an action plan for in according to the improved retirement graph.

DESCRIPTION OF THE INVENTION

[0039] In a first embodiment of the present invention, there is provided a system or method for generating, on output displays, curves related to ages of retirement with financial freedom based on current constraints and action planning.

[0040] The calculating system 8 of an embodiment of the present invention comprises a calculating device having an input interface for receiving user input and an output interface for displaying the output. Also, the network interface to connect to a network such as a LAN, WAN or Internet through a wire or wireless connection such as Ethernet, Wi-Fi™, Bluetooth™.

[0041] The purpose of the calculating system 10 of an embodiment of the present invention is to provide simplified device or interface to generate one or more curves representing the retirement ages of a user, so that the user may easily make an informed decision. Typical, these kind of curves is difficult to derive as they involves numerous constraint and fundamental assumptions that requires complex calculation steps. In particular, many of the existing system requires the age of retirement, i.e. the maxima of the curve be a constant number.

[0042] The present invention provides a calculating system 8 or method in fast transforming user information into age retirement curves to display on a display of a calculating device 10.

[0043] Referring to Figure 1, there is disclosed a calculating system 8 for generating, on output displays, curves related to ages of retirement with financial freedom based on current constraints and action planning according to an embodiment of the present invention. The calculating system 8 comprises a cloud server 18 for hosting the calculation process and storing data. The user may access the services through a number of calculating devices 10, such as tablet 12, laptop computer 14, or calculating device 16.

[0044] In one embodiment, the calculating device 10 is capable of performing calculations and storing user data, and there is no need to have the cloud server 18.

[0045] Typically, the calculating devices 10 as shown in Figure 2 comprises at least one user interface. The user interface may comprises a user input interface and a display. In one embodiment, the user interface is a touch screen 36 which comprises an input interface and a display. In another embodiment, the user interface comprises a keyboard and a LCD monitor as a display.

[0046] The calculating device 10 also comprises a processor 20 having an arithmetic logic unit 22, a control unit 24, and a plurality of registers 26. The registers 26 in the processors includes at least an accumulator, a data register, count register, destination index, source index, stack pointer, and base pointer. There is also an instruction register 28 connecting to the control unit 24. The arithmetic logic unit is in communication with the control unit though one or more buses 30, such as data bus, addresses bus, and the control bus. Depending on the processor, each of these register can be 64bit, 32bit, 16bit, and 8bit. The calculating device 10 comprises memory unit 34. In one embodiment, the memory unit comprises two portion: a nonvolatile portion, and a volatile portion.

[0047] Further, the calculating device 10 comprises a network interface 32 for connect to a network. The Network Interface 32 can be a wired or wireless network Interface. In one embodiment, the networking interface is a wireless local area networking interface may be based on Bluetooth, 802.16m', LTE-A, or IEEE 802.11 standard, etc. In another embodiment, the Network Interface can be a local area network Interface based on IEEE 802.3 standard.

[0048] Referring to Figure 3, there is provided a schematic diagram of the process 50 for a new user to generate a graphical representation for attaining the age of financial freedom. This process 50 is carried out by calculating device 10 after the new user has logged into the calculating device 10. The process starts with Step 50 where the calculating device 10 will present the Income and Savings Interface 130 to request user input for annual salary, monthly expenses, and current saving. Then the calculating device 10 carries out Step 54 for calculating financial freedom age and display on the Dash Board Interface 140 as shown in Figure 4.

[0049] Referring to Figure 5, there is provided a schematic diagram of the process 60 for an existing user to update and generate a new graphical presentation for attaining the age of financial freedom. Before initiatingthe process 60, the calculating device 10 first checks whether the user has already an account and profile set up. The calculating device has already performed the process 50 for that user. If the user profile is not found or corrupted, the calculating device will execute process 50 instead.

[0050] The process 60 starts in Step 61 where the calculating device 10 will display the Dash Board Interface 140 or also referred to as a dash board style interface. The top region of the Dash Board Interface 140 shows a representation displaying a graph with normal wealth against age / year of a user. At the lower region of the Dash Board

Interface 140, there is provided a number of options for the user to select the goal. In one embodiment, the user may select the following goals: plan for a child, take a holiday, or buy Insurance.

[0051] In Step 62 the calculating device 10 checks whether the user has select the goal for improving financial freedom age. In the condition that the user does not select any goal, the calculating device will proceed to Step 63.

[0052] In Step 63, the calculating device 10 will set the status of the goal to "In Progress". Then the calculating device will proceed to Step 64, where the calculating device will calculate the effect of the goal on the timeline. The calculating device will then prompt the user to select whether the user accepts the changes in Step 65.

[0053] In the event that the user refuses to accept the changes, the calculating device will loop back to Step 61, where the Dash Board Interface is displayed. In the event that the user accepts the changes, the calculating device 10 will proceed to Step 66, where the calculating device will indicate on the interface that a new plan will be put in action. In one preferred embodiment, the calculating device will send out a message through email to a financial consultant to follow up with the user.

[0054] In Step 62, when the user selects the goal for improving financial freedom age, the calculating device 10 will proceed to Step 67. In Step 67, the calculating device 10 will set the status of the Goal to "In Progress". The calculating device 10 will use the data input by the user to complete investor profile and financial profile. Then the calculating device proceeds to Step 69, wherein the calculating device will calculate the improved financial freedom age and display the result including a graph with a spinal or curve representing the improved age of retirement with financial freedom on the Dash Board Interface 140.

[0055] In Step 70, the calculating device 10 will then present the user with the investment plan on the Financial Plan Interface 150 as shown in Figure 6. On the Financial Plan Interface 150, the user may choose to view the plan by choose option 154 and click on the next button 152. The user may choose an option to automatic execute the investment 156, or an option to engage a financial advisor 158 to signal the execution of the financial plan.

[0056] In Step 71, in the event that the user decides to execute the investment plan, or by choosing option 156 or option 158, the calculating device 10 will proceed to Step 72 where the calculating device will update the status of the userto an advance user and allows the user to access advance investment, and financial planning functions. The calculating device will then process to Step 66 to put the investment plan into action. In Step 66, the calculating device will indicate on the interface that a new plan will be put in action. In one preferred embodiment, the calculating device will send out message through email to a financial consultant to follow up with the user.

[0057] In Step 71, where the user does not choose to the option to put the investment plan into action, the calculating device 10 will loop back to Step 61 to display the Dash Board Interface 140.

[0058] The details mechanic of the technic for the calculating device 10 is disclosed below.

[0059] Referring to Figure 7, there is provided a process 100 of creating a representation displaying a graph with normal wealth against age / year of a user. The process starts with Step 101, where the system 10 receives input from the user including the login name and password.

[0060] The calculating device 10 provides a link for a new user to obtain a user name and password. When a new user clicks on the link to create a new account, the calculating device 10 will direct then to a Registration Interface 110 as shown in Figure 8. The registration interface 100 requests the new user to input the first name, last name, date of birth, an email address, and a password. The registration interface will dynamically verify the format of the input data. For example, the registration interface may check the date of birth is a valid date or not.

[0061] After the new user clicks on a Sign Up button 112, the registration information will be sent to the calculating device 10 for processing. The calculating device 10 will check the data. In one embodiment, the calculating device 10 will check whether the new user has already had an account in the calculating device. In Step 102, after the calculating device 10 checked out the data, a verification email will be sent to the new user. The verification email provides activation instructions for the new user to activate the account. For example, the email may provide a uniform resource locator for a user to click on. When the user clicks on the universal resources locator, the calculating device will receive a digital token to activate the new user account. Once the user account is activated, the user may use his / her email address to log into the calculating device 10.

[0062] When a new user login, the calculating device 10 will provide one or more introduction messages. Then the calculating device 10 will retrieve the user profile. If there is no user profile available, the calculating device 10 will carry out Step 103 to collect user information and create a user profile. In one embodiment, the calculating device 10 will display an Income and Saving Interface 130 as shown in Figure 9. The Income and Savings Interface 130 requests the user to input the information to calculate the retirement age. The information includes the pre-tax annual salary, monthly expenses, current saving. Optionally, the user may input the amount of salary scarify to the superannuation and the amount of after-tax contribution to the superannuation. Once the user input all the information on the income and saving interface 130, the user may click on the Next button 132 to submit the information to the calculating device 10.

[0063] The calculating device 10 will carry out Step 104 to determine the initial Savings, current Age, and the Regular Savings. In an embodiment the calculating device 10 carries out the first computation Step 104 as follows:

Move the data in the memory register for Current Savings to the memory register for Savings

Move the data in the memory register for Monthly Expenses to the accumulator register

Multiply the data in the accumulator register by 12

Move the data in the accumulator register to the memory register for Annual Expenses

Move the data in the memory register for Annual Income to the accumulator register

Subtract the data in accumulator register by the data in the memory register for Annual Expenses

Move the data in the accumulator register to the memory register for Regular Savings [0064] The calculating device then carries out Step 105 to calculate user's current age. In one embodiment, the calculating device 10 then carries out the second computation Step 105 as follows:

Set the data stored in the accumulator register to the code for getting system date

Invoke the system interrupt

Move the data in the counter register to accumulator register

Subtract data in the accumulator by the year of birth

Move the data in the accumulator to the memory register for Age [0065] In step 106, the calculating device 10 will check whether the Regular Savings is equal or greater than the Financial Freedom amount. This step involves finding out the amount on the Financial Freedom. In one embodiment, the Financial Freedom amount is calculated with the following steps: Financial Freedom Amount = Amount of money needed to cover annual expenses from current age to 100 years with expenses rising 3% every year as inflation.

[0066] In the condition that the Regular Savings is less than the Financial Freedom Amount, then the calculating device 10 will jump to the subroutine to carrying out Step 107. In one embodiment, Step 107 involves the following operations:

Move data stored in the memory register for Income to the accumulator register

Multiply the data in the accumulator register with the data in the memory registry for the Inflation Rate

Add the data in the accumulator register with the data stored in the memory register for Income

Move the data in the accumulator register to the memory register for the Income

Move data stored in the memory register for Annual Expenses to the accumulator register

Multiply the data in the accumulator register with the data in the memory registry for the Inflation Rate

Add the data in the accumulator register with the data stored in the memory register for Annual Expenses

Move the data in the accumulator register to the memory register for the Annual Expenses

Move data in the memory register for Regular Savings to the accumulator register

Add the data in the accumulator register with the data in the memory register for the Income

Subtract the data in the accumulator register with the data in the memory register for the Annual Expenses

Move the data in the accumulator register to the memory register for Regular Savings

Move data in the memory register for Age to the accumulator register Add the data in the accumulator register by 1

Move the data in the accumulator register to the memory register for Age [0067] With the new data, the calculating device will loop back to Step 106 and check whether Regular Savings is equal or greater than the Financial Freedom amount. If the condition is still negative, then the calculating device 10 will jump to Step 107. When the condition is positive, the calculating device 10 will proceed to Step 108.

[0068] In Step 108, the calculating device 10 will create a graph with normal wealth on the y-axis and age / year on the x-axis. In one embodiment, the plot wealth line is plotted in grey colour to show rising wealth till financial freedom age, from which point wealth goes down to $0.

[0069] Referring to Figure 10, there is provided a process 160 for generating a graphical presentation for an improved age of financial freedom. The process 160 starts with Step 161, where the calculating device 10 set the status of the Goal to "In Progress", and proceeds to Step 162. In Step 162, the calculating device 10 displays an interface for the user to complete his / her "Financial Profile" and "Investment

Profile". The user may start on either one. The calculating device will capture and store the input data into the memory register, and move to Step 163.

[0070] In Step 163, the calculating device 10 will display an Income and Savings Interface 130 for the user to input and verify the data. The data required in the Second Income and Savings Interface 130 comprises the Income, Monthly Expenses, Saving Account Balance, and the Superannuation Account Balance. The user may optionally chooses to input the amount of current salary sacrifice into the superannuation. The user may also optional choose to input the amount of after-tax superannuation contribution. Once the user inputs all the data into the income and Savings Interface, the user may click on the Next button to submit the data to the calculating device 10. When the calculating device 10 receives the data, it will proceed to Step 164.

[0071] In Step 164, the calculating device 10 will display a Property Interface 170 as shown in Figure 11 for the user to input information of the real estate owned by the user. The Property Interface 170 allows the user to input: the name of the property (e.g. Home, etc), the purchase price, the purchase date, the mortgage status of the property, any outstanding amount in the mortgage, and the estimated current value. The user may add an additional real estate by clicking the Add Property button 172. Afterthe user satisfied that all the information of the properties has been input to the calculating device, the user may click on the next button 174 to process to the next Step 165 to provide information on equity.

[0072] In Step 165, the calculating device 10 will display an Equity Interface 180 as shown in Figure 12 for the user to input information of the shares owned by the user. The Equity Interface 180 allows the user to input: the share tickets, current price, and the purchased quantities. With the information, the calculating device 10 will carry out the follow process to derive the current value of the share:

Move data stored in the memory register for current price of the share to the accumulator register

Multiply the data in the accumulator register with the data in the memory registry for the purchased quantities

Move data in the accumulator to the memory registry for the current value [0073] The user may add an additional share by clicking the Add Share button 182. After the user satisfied that all the information of the shares has been input to the calculating device 10, the user may click on the Complete button 184 to process to the next Step 166.

[0074] In Step 166, the calculating device 10 will update the user's financial profile information by further considering the superannuation, properties, and equities owned by the user.

[0075] In Step 167, the calculating device 10 will prepare the environment for calculating the financial status and age of the user. In one embodiment of the present invent, the calculating device 10 will set up the fundamental parameters such as the growth rate of all the assets. For example, the calculating device may carry out the following process:

Set the variable for the Annual Superannuation Growth to 4%

Set the variable for the Annual Property Growth to 5%

Set the variable for the Annual Equity Growth to 5% [0076] In another embodiment, the fundamental parameters are fetched from public sources, such as from the Statistic Bureau, Reserve Bank, or Treasury. When all the fundamental parameters are set up, the calculating device will proceed to Step 168 for finding the improved age of retirement with financial freedom.

[0077] In Step 168, the calculating device 10 will carry out the following calculation.

Where:

Target amount — 5% of current annual expenses FVannunity = Target amount Cx = Regular Contribution t = number of period P = Starting Cash [0078] After the calculating device 10 derives the value of t, i.e. the number of periods to attain financial freedom, the calculating device will update the retirement age by adding t to the current age value. Then the calculating device will proceed to Step 169 to generating graphical representation on the display.

[0079] In Step 169, the calculating device 10 creates a graph with normal wealth in term of monetary value on the y-axis and age / year on the x-axis. Then the calculating device 10 plots the spinal / curve representing the user's wealth to show rising wealth in monetary value till the financial freedom age, which will be the maxima on the spinal/curve. Then the graph will go down to zero wealth from the maxima.

[0080] The advantage of the present invention is the fast transform process which greatly reduces the steps of the complex spinal / curve plotting formula of traditional retirement planning calculations. In order to achieve this fast transformation, the current process focuses on the calculation of the retirement age instead of setting a fixed retirement age.

[0081] Referring to Figure 13, there is provided a process 200 for generating an action plan for in according to the improved retirement graph. The method disclosed in the present invention is not merely a method of plotting a spinal / curve on the display in a more effective and efficient manner. There is a number of real-life constraints and in particular there must be an action plan for which the execution will allow the user to achieve an improved retirement age with financial freedom. In one embodiment, the process 200 starts with Step 201, where the calculating device 10 set the status of the Goal to "In Progress", and proceeds to Step 202. In Step 202, the calculating device 10 displays an interface for the user to complete his / her "Financial Profile" and "Investment Profile". The user may start on either one. The calculating device will capture and store the input data into the memory register, and moves to Step 203.

[0082] In Step 203, the calculating device 10 displays an Investor Profile Questionnaire Interface for the user to make decisions regarding on the action plan. The Investor Profile Questionnaire Interface will display a plurality of multiple choice questions to the user. In each question, there is provided a number of option buttons for the user to click on. When the user answers each question, the calculating device 10 will assign a numerical value for the answer to each question. After the user answers all the questions, the user may click on a Next button to proceed to Step 204. In Step 204, the calculating device 10 will display an Investment Preference Interface for the user to specify his / her preference of invention. In one embodiment, there are three options for the user to choose from: (i) physical property only, (ii) shares only, and (iii) no preference. After the user selects the preference option, the calculating device 10 will proceed to Step 205.

[0083] In Step 205, the calculating device 10 will check whether has selected an option that the user has a low-risk preference and selected to invest in property. In the event that the checking result is positive, the calculating device 10 will proceed to Step 206. In Step 206, the calculating device will display a liability disclosure agreement. The user must read through the disclosure agreement and click on accept to indicate that the user accepts that there is an increase in risk for investment in property. After the user clicks on the Accept Button to accept the increase of risk in property investment, the calculating device 10 will proceed to Step 207. In Step 205, if the check result is negative, the calculating device 10 will jump to Step 207 directly.

[0084] In Step 207, the calculating device will assign the user the risk profile according to their risk score derived from the data received from the Investor Profile Questionnaire Interface in Step 203. An example table for risk profile summary is presented below.

[0085] After assigning the user the risk profile according to their risk score, the calculating device 10 proceeds to Step 208. The calculating device will run through the financial freedom calculation as shown in Step 168 to find an improved age. After the calculating device 10 derives the new retirement age, it will proceed to Step 209. In Step 209, the calculating device 10 will apply the results from Step 208 to generate a second graph with normal wealth in monetary value on the y-axis, and the age / year on the x-axis. Then the calculating device 10 plots the spinal / curve representing the user's wealth to show rising wealth in monetary value till the financial freedom age, which will be the maxima on the spinal/curve. Then the graph will go down to zero wealth from the maxima.

[0086] The calculating device 10 will highlight how much the user can achieve by engaging the action plan. Then the calculating device 10 will proceed to Step 210 to create an action plan for the user to achieve financial freedom at the improved age. The action plan will lay down: (i) assets to be purchased, (ii) dates of the purchases, (iii) assets to be disposed of, and (iv) dates of the disposals.

[0087] The present invention and the described preferred embodiments specifically include at least one feature that has industrial applicability.

Claims (10)

1. An calculating device comprising an input device, a processor and a display for displaying curves, wherein the curves is generated with the method comprising the steps of: receiving personal financial data from a user, wherein the personal financial data comprising: one or more of incomes, one or more expenses, and birthdate or age; generating a first curve on the display, wherein the first curve having a first retirement age as a maxima of the first curve; generating a second curve on the display, wherein the second curve having an improved retirement age a maxima of the second curve; such that the first curve is superimposed with the second curve, and the first age of retirement is less than the improved age of retirement.

2. A calculating device of Claim 1 wherein the maxima is derived with the date of birth or current age and a period t, where in

Where: Target amount — 5% of current annual expenses FVannunity = Target amount C1 — Regular Contribution t ~ number of period P — Starting Cash

3. A calculating device of Claim 1 or Claim 2, where in the method further comprises the step of receiving property data from the user, wherein the property data comprises one or more of an identification of a property, a purchase price of the property, a purchase date of the property, a mortgage status of the property, and an current value of the property.

4. A calculating device of any one of Claims 1 to 3, wherein the method further comprises the step of receiving equity data from the user, wherein the equity data comprises one or more of an identification of equity, a current price of the equity, and an number of unit of the equity owned by the user.

5. A calculating device of any one of Claims 1 to 4, wherein the improved age is derived from an action plan directing the user to carry out one or more of the actions, including purchasing an asset, and selling an asset.

6. A calculating device of Claim 5, wherein the action plan comprising one or more action data including identifications of assets to purchases, dates of the purchases of the assets, identification of assets to sell, and the dates of the sale of the assets.

7. A calculating device of any one of Claims 1 to 6, wherein the method comprises the step of displaying an interface with one or more question for the user to answer, such that each answer the user provided will have a risk value assigned, and stored in the calculating device.

8. A calculating device of Claim 7, wherein the method comprises the step of providing an interface for the user to select an investment preference from an option of property only, an option of shares only, and an option of no preference.

9. A calculating device of Claim 8, wherein the processor will assess the risk point and investment preferences of the user, such that a risk agreement will be displayed for user to review and accept by clicking an user interface in the event that the risk point is below a threshold and the investment preference is equal to the option of property only.

10. A calculating device of Claim 9, wherein the action plan is generated according to the risk point and the investment preference of the user.