An investment policy statement (IPS) relates to an investment portfolio as a business plan relates to how the business will operate. Without an IPS, investors may be tempted to make changes that, over the long term, may not be in the best interests of the investor. The contents of an IPS typically include the following:

Contained in an IPS is the Return Range (95% probability), which includes the Risk Floor™. An IPS is good for both the advisor and investor in that expectations are in writing.

Contact you financial planner for an example of an IPS.