Course 108:
Creating Your Investment Policy Statement
In this course
1 Introduction
2 Executive Summary
3 Investment Objectives
4 Investment Philosophy
5 Investment Selection Criteria
6 Monitoring Procedures
7 Revisiting Your IPS

Big organizations create them for their company retirement plans. Financial advisors craft them for their clients. They require some philosophizing and number crunching. And when done thoughtfully and comprehensively, they can be 15 pages long.

What are "they"? Investment Policy Statements, or IPSs.

An IPS isn't only for the well-heeled who love paperwork. It's a must for all investors. That's because creating an Investment Policy Statement forces you to put your investment strategy in writing and commit to a disciplined investment plan. It's both a blueprint and a report card.

We can't cover everything that you'll need to include in your Investment Policy Statement in just one class. But by downloading, printing, and filling in Morningstar's Investment Policy Statement Worksheet, you'll have a good start. Download the worksheet here. (Note: The worksheet is available as a PDF file. You will need Adobe® Acrobat® Reader to view and print it.)

If you've been taking classes in the Portfolios Track of the Investing Classroom in order, you'll already know the answers to many of the questions that the Investment Policy Statement includes. Don't worry if you haven't taken previous classes, though. We'll tell you which classes you'll need to review to answer these questions.

Next: Executive Summary >>


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