These written plans are known as Investment Policy Statements (IPS's), and have been used by wealthy families, pension plans, endowments, and foundations for many years. In general, an IPS describes, in detail, your primary financial goals. It provides a time frame to accomplish the goals as well as outlines how the funds will be invested. Most importantly, an IPS serves as a buffer between you and one of the biggest threats to your investment - emotion.
“Investment policy statements help people avoid losing money,” says Jeffrey B. Harris, chartered financial consultant and author of “Retire Rich and Happy: 12 Secrets to Retirement Success” (Aames-Abbott Publishing, $21.95, www.retirerich-online.com). “While it can't guarantee you'll achieve all your financial goals, a good IPS can keep you focused on what's most important so you don't get sidetracked by emotions, investment fads, hot tips and other temptations.”
With nearly twenty-five years experience in the financial services field, Harris has helped hundreds of business owners build wealth through investment. He strives to help clients learn not only how to accumulate monetary wealth, but also how to live a life rich in happiness.
According to Harris, there are three basic steps to creating a solid Investment Policy Statement:
Outline objectives in detail.
Decide how and when to change investment managers.
Develop a portfolio of different types of assets designed to accomplish your objectives.
Regardless of your financial situation, or how much you have to invest, you can benefit from the planning and foresight that go into creating a money map designed specifically to preserve, grow, and most importantly, protect, your retirement money.
Are you ready to retire rich and happy? Take a simple 9-question quiz to find out at www.retirerich-online.com
BIO: Jeffrey B. Harris, Financial Advice to Help You Live RICHLY
Jeffrey B. Harris is a chartered financial consultant with nearly twenty-five years experience in the financial services field. An in-demand speaker and consultant, he is president of Jeff Harris and Associates, Inc., a fee-based Registered Investment Advisor and a Registered Principal with Raymond James Financial Services, Inc. of St. Petersburg, FL, member NASD/SIPC. Harris previously hosted a call-in radio show about finance as well as offered commentary on the local ABC affiliate.
Retire Rich and Happy: 12 Secrets to Retirement Success