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Investment Policy Statement

 

What Is An Investment Policy Statement

It is where an investor lists his investing objectives and goals. It is a guide to an investor’s financial future.

Why Investment Policy Statement Is Important

It is essential in helping an investor stay on track.

My Investment Policy Statement

It took me a while to appreciate the value of IPS. After feeling overwhelmed with investment decisions recently, I decided to make my own. With it, I believe I can avoid losing track of my investment goals. Below is my IPS:

As of: May 30, 2018

Stock Broker: COL Financial Group, Inc.

Investment Objectives: Capital Appreciation and Total Return

Primary Purpose: For Retirement

Risk Profile: Aggressive

Investment Time Horizon: 20 years

Portfolio Allocation: 100% stocks

Dividend Policy: Reinvest

Rebalancing: Not Applicable within the 20-year time frame

Investment Strategy: Passive

Return Expectation: 5% to 10% annual return after costs and inflation

After careful studying, these points affected how I drafted my IPS:

John Bogle

Warren Buffet

  1. Don’t lose money
  2. Don’t forget rule number one.

Benjamin Graham

Jack Meyer

Mark Hulbert

Jim Wiandt

Clifford Asness

Some simple, but not easy, advice for good investing and financial planning:

Allan Mecham

John Templeton

Philip Fisher

 

Sources:

The Little Book of Common Sense Investing by John Bogle

Common Sense on Mutual Funds by John Bogle

Is This The Next Warren Buffet? by Brett Arends

World Famous Investors: What You Need to Know by Team Wall Street Survivor