Sample Investment Policy Statement
*to be customized for each client*
Cash Assets (Checking, Savings, CDs: $150,000
Taxable Assets (Individual, Joint, Trust): $250,000
Retirement Assets (IRA, 401k, 403b, Roth accounts, etc): $550,000
Taxable Account: Increased growth potential with access to money if needed before retirement.
Retirement Accounts: Invest for growth to provide income during retirement.
Investment Contribution Rate: 15% of Income
Duration or number of years to invest: 15 yrs to retirement
Rate of Return Goal: 5% annual return based on Financial Planning analysis
Risk Tolerance: Moderate
Short-term liquidity needs: Low (0.0% - 2.0%)
The Process begins with your goal as the foundation of the Investment Management Process. Each subsequent step should serve to build and strengthen the likelihood of the goal being achieved.
We listen to your current financial situation and what you would like to accomplish in order to structure a long term, diversified strategy that best fits your personal financial plan. We work to anticipate (not predict) the market and evolve your portfolio to reflect the ever-changing environment while helping you achieve financial security, maximize your gains and protect your assets.
Favor the long term growth potential of stock funds and use bond funds for diversification from stocks, capital preservation, income and inflation protection. Hold cash and short-bond funds for near-term expenditures. Use Active, Passive, and Retirement Buckets Investment Strategies as necessary.
RANGE OF STOCK, BOND & BLENDED TOTAL RETURNS - Annual total returns, 1950-2019
Morningstar Analyst Rating
Morningstar Star Rating
Risk / Return
Rebalance when allocations to broad asset classes are 5 - 10% from the target asset allocation:
Review Portfolio: Annually - Semiannually - Monthly
Progress toward goal
Performance vs. benchmark/category peers
Tax efficiency of taxable portfolio
Tax-loss harvesting opportunities
Concentration risk (investment style, sector)
Portfolio performance vs. blended benchmark
Market Opportunities / Undervalued Stocks
1340 Smith Ave, Ste 200 | Baltimore | MD | 21209 | www.northbrookfinancial.com | (410) 941-9709