• Investment policy statement (IPS)
    • Document drafted between a portfolio manager and a client
    • Describes the strategies that the advisor should employ to reach goals
    • Most money that is overseen for people is by financial advisors
    • They pick the “managers” that manage the money for you

1. IPS helps establish reasonable expectations objectives and guidelines

2. Set forth an investment structure of permitted asset classes, allocations

3. Encourage effective communication between the advisor and investors

4. Create the framework for a well diversified asset mix that can be expected to general acceptable long term risk

Success in a portfolio

  • Portfolio principles
  • Asset allocation and diversification

Some investors believe that when they give the responsibility to someone else to manage their money, they take any responsibility off of themselves

  • It is YOUR money
  • If something happens, it is just as much your responsibility to know 
  • Hold yourself accountable as well!!
  • Having an investment policy statement will only help the process
  • Where are your expectations? Are they reasonable

May 1, 2018