Investment Policy Statement
From finiki
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| Portfolio Design |
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"You've got to be very careful if you don't know where you're going, because you might not get there."
"If you don't know where you are going, you will wind up somewhere else."
Yogi Berra[1] wasn't talking about investing but he could have been. An Investment Policy Statement (IPS) forces you to put down on paper your investment goals and timelines and how you will get there. It spells out how you will measure how you are doing and how often you will review how you are doing.
Morningstar[2] provides an excellent summary of what an IPS should include and a downloadable worksheet[3]. Libra Investment provides a sample IPS for a mythical retired widow[4].
In simple cases, an Investment Plan may suffice.
References
- ↑ Things People Said, Yogi Berra Quotes, viewed Mar 7, 2011.
- ↑ Morningstar.ca, Portfolio 107: Creating your Investment Policy Statement, viewed Mar 7, 2011.
- ↑ Morningstar.ca, Morningstar's Investment Policy Statement Worksheet, viewed Mar 7, 2011.
- ↑ Libra Investments, IPS template, viewed Mar 7, 2011.
