COMPUTERIZED METHOD AND SYSTEM FOR PROVIDING GUARANTEED LIFETIME INCOME WITH LIQUIDITY

Computerized method and system for administering at least part of a program to provide a person with guaranteed lifetime income with a measure of liquidity using at least an initial contribution of assets such as from an IRA. The amounts of a series of periodic distributions or payments to be made during first and second periods in the person's life are calculated based on an information profile and stored financial and actuarial data. The first or "guaranteed" period begins on a given date and has a definite duration, and the second or "life contingent" period begins after the first period and extends for as long as the person or joint annuitant lives. A first portion of the contribution is allocated towards the purchase of at least one guaranteed financial vehicle having a determinable market value at any time so as to be capable of being liquidated and which will provide the person with periodic distributions during the first period. These guaranteed financial vehicles are preferably serially maturing Guaranteed Interest Rate Options. A second portion of the initial contribution is allocated towards the purchase of at least one life contingent financial vehicle such as a life contingent annuity which will provide the person with periodic distributions for as long as the person or joint annuitant lives. A further portion of the initial contribution could be invested in non-guaranteed financial vehicles to provide a greater return, which return is periodically used to purchase additional guaranteed and/or life contingent financial vehicles.