Investor Policy Statement

Do you have an Investor Policy Statement (IPS)?

What is:

Some examples:
@thepoorswiss :
@MrRIP :
@Mr.HdLR :
@Julianek : Julianek's journal


Thanks for sharing @Mr.HdLR and @Julianek :+1: I’ve updated the first post with your links.

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Thanks @ajPT, I’ve realised I need to allocate some time to write my IPS down. It’s in my head, but it’s not specific enough.

I have an Investment Policy Statement that I wrote about five years ago and have stuck to so far. It says to hold (age-5)% in bonds (IEAG) and the rest in stocks (VWRL). Once per year I check the balances and if the allocation has drifted more than 5% from those targets then I rebalance by selling some of the high one to buy the low one.

House, mortgage and Pillar 2 are not currently considered in these plans. It would be nice to make a revision that is more complete one day.

I am generally happy with this approach. I do feel like my risk tolerance would allow me to hold more stocks but I am happy to be a little conservative. I could be overestimating my risk tolerance since stocks have been performing so well since I started investing in index funds.

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Not really discussed here, so I wonder: do you guys have an IPS? Mine is pretty simple:

  1. Invest globally.
  2. Invest as soon as it’s available.
  3. Sell what you need when retired.
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