Investment Policy Statement - IPS

When a pro tries to sell you investments, they want to know a bunch of stuff. (That's an investment adviser pro, not any other kind of pro, btw.) How much can you invest? What are your goals? How comfortable are you with risk? What's your time frame as to when you'll need the cash you invest returned to you? It's not all small talk.

All the questions are designed to create an investment strategy, or a game plan, for your investments. The investment policy statement is just the written road map that shows what you've talked about. It makes sure that you aren't lost in Bondland...when you really wanted to be investing in growing stocks.

See: Trust Indenture.