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Personal Investment Policy
The creation of each client's Personal
Investment Policy is a critical part of the investment planning process. The
policy document outlines and describes the investment philosophy, approach
and procedures that will be used to manage that client's investment account in an
effort to meet the stated long-term financial goals.
The idea behind a Personal Investment Policy is to ensure that we protect
the portfolio from any ad hoc revisions to the long-term policy when the
markets are volatile and a client might consider making a reactive change in
the face of a short-term market spike. Over time, the Personal Investment
Policy provides a disciplined and systematic investment approach that
improves the probability of meeting one’s financial goals. Of course,
changes are made to Personal Investment Policies, but they are not made
without much consideration and discussion; and not made in hasty reaction to
a temporal market situation.
The elements of a
client's Personal Investment Policy are as follows:
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Investment Objectives |
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Time Horizon |
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Risk Tolerance |
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Tax Policy |
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Investment approach |
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Asset Allocation Targets |
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Security Selection |
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Investment monitoring & Control |
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Duties and Responsibilities |
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