ITERATIVE MODELING TOOL FOR OPTIMIZING ASSET USAGE

摘要

A computer system is configured to take an iterative approach to solving an optimization problem involving two functions with a shared output and a common constant value. The first function may have discontinuous or non-linear input parameters, and the second function may have a relationship with the common constant value more mathematically complex than a mere summation. By determining an appropriate common constant value, the two functions become equal to each other, within a margin of tolerance, at a specified value of a shared independent input parameter. The computer system iterates on the shared output, solving non-convergence issues associated with iteration directly on the common constant value and improving computational speed. This iterative approach can be applied to solving asset optimization problems in retirement planning that includes deferred annuities.