Example IPS |
Investment Objectives: | These are my main objectives for my investment program. I have made developed them after a review of my financial resources, financial goals, asset allocation, risk tolerance and time horizon.   * Objective 1: To retire at the age of 57   * Objective 2: To have an annual income from my investments of at least $45,000 after taxes and in today’s dollars (inflation assumed to be 3.0 percent yearly)   * Objective 3: To leave a meaningful inheritance for my children   * Objective 4: To minimize potential tax liabilities   * Objective 5: To monitor portfolio allocation against holding limits, to benchmark returns against expectations, and to consider revisions to portfolio as personal situation may dictate |
Risk Tolerance: | My ability to tolerate the uncertainties, complexities and volatility inherent in the investment markets has been considered in the development of this investment program. The main factors that have influenced my risk tolerance and asset allocation are: age, present financial condition, specific financial goals, discretionary income and its variability, past investment experience. |
Holding Limits: | My portfolio was developed subject to certain holding limitations. These are limitations on the minimum and maximum percentage investment in each asset class:   * Large Cap U.S. Equities (15-30 percent)   * Mid Cap U.S. Equities (10-25 percent)   * Small Cap U.S. Equities (5-15 percent)   * Foreign Equities (5-15 percent)   * REITs (0-15 percent)   * Inter-Term Govt Bonds (10-25 percent)   * Corporate Bonds (0-10 percent)   * Cash and Cash Equivalents (5-20 percent) |
Target Allocation: | Based on my financial resources, financial goals, time horizon, tax status, holding limitations, risk tolerance andexpected investment performance a recommended portfolio was determined. The portfolio balances risk and reward and attempts to achieve the stated objectives of the investment program. The initial asset...