Investment Policy Statements
 provided by a Financial Advisor

Presented by | August 19, 2019

What are they? Why are they important?

A self-fulfilling policy. An investment policy statement (IPS) is a document which helps the client and financial advisor stay “on the same page” by clearly stating the expectations and responsibilities of the client and advisor.

A standard IPS will usually take into account the client’s general investment goals and objectives, but also more specific elements, such as a breakdown of asset allocation targets, any control and monitoring procedures to be followed by everyone involved in the portfolio, and concrete procedures for making any future changes to the IPS.1

Read the fine print. Because an IPS includes your broad investing goals and objectives, it’s important to read through it fully. For some, it may be helpful to think of an IPS as a way for you to communicate with your financial advisor, even if you’re unable to be reached. This may also be helpful when quick action is necessary.

That’s because an IPS sets the parameters within which the financial advisor will operate in order to help you reach a set of preestablished goals. So, if during your read through of an IPS anything feels uncomfortable, a conversation with your financial advisor is a great idea.
Invest in a conversation. An IPS is a great way to make sure you’re with a financial advisor who understands your risk tolerance, goals, and time horizon. After all, an investment policy statement can be deeply personal and works best when tailored to your circumstances. However, if you happen to find an element of your IPS that doesn’t fit exactly right, don’t despair. A conversation with a financial advisor can often help create an investment statement that’s as unique as your portfolio may be.
If you ever have any questions about your investments or retirement plans, please feel free to give me a call at 801-545-0696.

 

Citations.
1 – cfainstitute.org/membership/professional-development/refresher-readings/2018/the-portfolio-management-process-and-the-investment-policy-statement [06/18/2019]
This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This material was prepared by MarketingLibrary, Inc., for Mark Lund, Mark is known as a Wealth Advisor, The 401k Advisor, Investor Coach, Financial Advisor, Financial Planner and author of The Effective Investor. Mark offers investment advisory services through Stonecreek Wealth Advisors, Inc. a fiduciary, independent, fee-only, Registered Investment Advisor firm providing investment and retirement planning for individuals and 401k consulting for small businesses. Cities served include but not limited to are: Salt Lake County, Park City, Salt Lake City, Murray City, West Jordan City, Sandy City, Draper City, South Jordan City, Provo City, Orem City, Lehi City, Highland City, Alpine City, American Fork City, and Utah County in Utah.

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About the Author ()

Mark K. Lund is the author of The Effective Investor, a #1 Best Seller, and founder of Stonecreek Wealth Advisors, Inc. an independent, fee-only, Registered Investment Advisory firm. He has provided articles for or been quoted in: The Wall Street Journal, The Salt Lake Tribune, The Enterprise Newspaper, The Utah Business Connect Magazine, US News & World Report, and Newsmax.com, just to name a few.  Mark publishes two newsletters called, “The Mark Lund Growth Report” and “Mark Lund on Money.”  Mark provides CPE (continuing professional education) courses for CPAs.  You may also have seen him on KUTV Channel 2, or as a guest speaker at a local association or business. Mark provides investment and retirement planning services for individuals and 401(k) consulting for small businesses. In his book, The Effective Investor, Mark exposes the false narrative magazines, media, big Wall Street firms, and most advisors want you to believe. The good news is that Mark will show you that you don’t need their speculative ways of investing in order to be a successful investor. Get a free copy when you schedule your initial consultation.

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