Financial Advisor to clergy and religious educators 

Your Investment Policy Statement - Roadmap

Your Investment Policy Statement (IPS) is an important, well-conceived written document that is tailored to your specific needs and clearly defines your objectives and constraints over a relevant, explicitly stated investment time horizon.

The IPS is the foundation of managing your investments and serves as a structured decision-making process for your investment decisions. This helps to balance return seeking and risk taking; and increases the probability of success in achieving your long-term investment goals. It provides a long-term investment discipline, rather than one that is
based on ad hoc revisions spurred by overconfidence or panic in reaction to short-term market fluctuations. The absence of a written policy reduces decision making to emotional knee-jerk reactions often leading to chasing short-term opportunities that will detract from reaching long-term goals. The IPS helps to maintain your focus on the long-term nature of the investment process, especially during turbulent or exuberant times.

You (with the help of your advisor) are responsible for establishing your own investment policy. Once established, it is then the advisor's role to help you follow that policy. No changes should be made until there is a material change in your personal or financial circumstances. Your IPS normally doesn't change in response to market moves, and should be long-term to prevent arbitrary or impulsive revisions.

Your IPS helps clarify issues of importance and concerns to both parties.


Issues addressed in your IPS include:

  • Asset allocation strategy (growth & value; stocks, bonds, cash, real estate; domestic, international; asset classes to avoid)
  • Liquidity and income requirements
  • Investment time horizon
  • Tax considerations
  • Unique needs and circumstances
  • Risk and rate of return guidelines
  • Method for selecting and removing investments
  • Rebalancing criteria
  • Method for monitoring and evaluating investment performance

An IPS should be used not just during your working years when you're accumulating assets, but also once you're retired when you're conserving your assets. Work with your advisor in creating your personal Investment Policy Statement to start you on your path to achieving your financial goals.


Are you saving enough for retirement? If not, do you know what to do to reach your goal? Are you taking on more investment risk than necessary? Is your greatest financial asset (not your home) properly insured? Are you satisfied with the value, service and attention that you're receiving from your advisor? If not, call for a complimentary review of your financial situation.

Dresner Financial Planning Dresner@clergyplanning.com
2359 Salisbury Road Westbury, NY 11590
(888) 200-9670
Back to index