Why You Need an Investor Policy Statement

An Investor Policy Statement is a document that outlays your investment goals, desired strategies, asset allocations, contingency plans, and concrete plans on how you’ll invest.

This IPS will very likely be a living document, that changes as your life changes. However, it shouldn’t change too often. The reason is simple. You lay out your investment goals and strategies for the long term and they simply shouldn’t change too dramatically too often.

I find myself wanting to chase the next shiny object, and the next one, instead of following the plan. My IPS is now the plan so I have some guidance.

In this post I show you my complete IPS, including comments on the why and how. It is in no way a fixed format document. My IPS will probably grow and change as time goes on and when I think of additions to the plan.

Read the full article here.



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