How to Construct a Good Investment Policy Statement
I wrote in a previous blog about the importance of having a well-written Investment Policy Statement (IPS). What should be in a well-written document?
I wrote in a previous blog about the importance of having a well-written Investment Policy Statement (IPS). What should be in a well-written document?
As we’ll see, each of these are real risks, because if they are unmanaged or unanticipated, they may cause investors to focus on the wrong things at the wrong times and lead to actions that may sabotage goals and portfolios.
Making good decisions and ultimately avoiding costly mistakes can be life-changing. Note that it does not start and end with picking the best player or hot stock but rather goals and a plan.
Barbells work great at the gym because they put weight on a bar in such a way that it’s balanced, leaving room in the middle for someone to use it to workout. We often see portfolios that are designed like a barbell at the gym: lots of risk in one account and lots of cash or very short-term securities in another. In aggregate, it might produce some balance, but the reality is that it can create some real challenges.
Almost everyone has a few of their favorite things. One of my top questions to ask friends and clients is, “What are some of your most treasured memories and keepsakes?”
Barbells work great at the gym because they put weight on a bar in such a way that it’s balanced, leaving room in the middle for someone to use it to workout. We often see portfolios that are designed like a barbell at the gym: lots of risk in one account and lots of cash or very short-term securities in another. In aggregate, it might produce some balance, but the reality is that it can create some real challenges.
Almost everyone has a few of their favorite things. One of my top questions to ask friends and clients is, “What are some of your most treasured memories and keepsakes?”