The Investment Policy Statement is the written document that gives the written guidelines on how your want your money managed. Everyone should have an investment policy statement.
When you work with us we will determine a few things. One, how long before you want to take money out of your investments. This is known as your time horizon and two, what kind of risk you can handle. The answers to these two items will help us in developing your investment policy statement.
The investment policy statement is the written definition of your risk, your time horizons, goals, objectives, and liquidity requirements. This will give you and the guidelines on how your money should be managed. Based on your experience and goals, your portfolio will be built with the exact percentages you should have in each of the various asset categories that balances your risk, time horizon, and income needs.
The purpose is to ensure prudent, long-term strategies to help you protect your portfolio from spur of the moment changes that could be caused by reactions to sudden market changes or the latest news on CNN. Basically we are trying to do two things.
1. We are trying to automate good decision making.
2. We are trying to eliminate bad decision making.
By having defined processes in place where we only following defined rules it doesn’t allow things like our attitude, our emotions on that day, our greed, our fear, or anything like that to influence our decision making.
Once your investment policy statement is complete you are then ready to invest. You will now know exactly what percentage of your money should be maintained in each category.
Once you have a good portfolio put together with various asset categories with no style drift you now need to have that portfolio managed to maintain its original asset allocation percentages. This is critical in the long term success of your portfolio.
Few people understand the importance of having a written investment policy statement. The next step is for you to contact us. Don’t spend another minute in the dark and order your Free Investor Awareness Guide today
1-877-526-8727.