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NFP - Sample Investment Policy Statement
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Sample Investment Policy Statement

*to be customized for each client*

SUMMARY OF CURRENT POSITION

Cash Assets (Checking, Savings, CDs: $150,000

Taxable Assets (Individual, Joint, Trust): $250,000

Retirement Assets (IRA, 401k, 403b, Roth accounts, etc): $550,000

INVESTMENT GOAL DETAILS

Goal(s): To build a diversified portfolio consisting of best in class investment strategies structured to accomplish the long term goals of the client.

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%)

TARGET ASSET ALLOCATION

U.S. Stocks

20-80%

Large-Cap

50%

Mid-Cap

25%

Small-Cap

25%

Foreign Stocks

0-40%

Dev. Markets

50%

Em.Markets

25%

Int. Small-Cap

25%

Bonds

0-80%

Short-Term

25%

Int.-Term

50%

Long-Term

25%

INVESTMENT MANAGEMENT PROCESS

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.

INVESTMENT STRATEGY IN BRIEF

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

INVESTMENT SELECTION CRITERIA

Morningstar Analyst Rating

Fee Level

Morningstar Star Rating

Manager Tenure

Investment Philosophy

Risk / Return

Parent Company

Stewardship Grade

MONITORING STANDARDS

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

Security fundamentals

Northbrook Financial

1340 Smith Ave, Ste 200 | Baltimore | MD | 21209 | www.northbrookfinancial.com | (410) 941-9709