Abstract
Spending appreciating assets, such as digital assets or securities, may create an opportunity cost, as their future value could exceed their present value. This can present a challenge for users who wish to spend from their investment portfolios for daily needs. This disclosure describes a method for dynamic asset allocation within a digital wallet. A system can analyze a user's portfolio of diverse assets (e.g., digital assets, stocks, cash) using an algorithm that can combine machine learning, technical analysis, and sentiment analysis to project future returns. To reduce opportunity cost, the system can automatically select assets with a lower projected future return or a higher likelihood of near-term loss for spending first. This allows users to spend from their portfolio while retaining assets with a higher likelihood of growth and potentially leveraging tax-harvesting and arbitrage strategies.
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.
Recommended Citation
Johnson, Quinn and Johnson, Jr., Joseph, "Dynamic Asset Allocation for Spending", Technical Disclosure Commons, (July 14, 2025)
https://www.tdcommons.org/dpubs_series/8347