Your Investment Policy Statement

“Hot” stocks may be interesting news, but they are not a good way to build a lifelong investment strategy. We help our clients to avoid the pitfalls of “emotional” investing by developing an Investment Policy Statement at the very beginning of our relationship.

What Is Your IPS?

In a nutshell it's your financial game plan, roadmap, blueprint, recipe, etc.

The Investment Policy Statement (IPS) is a written plan that we create together, to help guide your long-term investment goals. A written investment policy allows you to clearly establish your investment time horizon and goals, your tolerance for risk (as measured by returns in bear markets and historic volatility) and the prudence and diversification standards that you want the investment process to maintain. A written investment policy also helps identify your need to take risk in light of such factors as your financial objectives and income stability.

Your IPS is based on your own personal financial risk tolerances goals, and objectives. Every investment decision you make comes from your written IPS, avoiding the trap of “emotional” investing.

Why Your IPS Is Important

Your IPS will help keep you on track through the ups and downs of the stock market. It will keep you from making “emotional” investments, based on information from your friends or the media.

Most importantly a written policy helps assure rational analysis is the primary basis for important investment decisions.

When to Change Your IPS

We review your IPS with you on a regular basis. Each time we review your IPS, we determine if your investment plan still meets your investment goals, as well as your comfort level of risk.

Reviewing a written plan on a regular basis gives our clients the confidence and discipline to stick with their investment strategy over the long haul. Long-term discipline is the best indicator of financial success.

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