Personal Finance
Investment Policy Statement
Definition
What is Investment Policy Statement?
A written document stating investmentAn asset or commitment of money made with the expectation of future income, growth, or both. objectives, risk limits, allocation, liquidityThe ease and speed with which an investment can be converted into cash without a major price concession. needs, and review rules.
Example in practice
How This Looks in Practice
A family writes an IPS before choosing fund products.
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Related Terms
Personal Finance
Savings
Money set aside rather than spent, often for emergencies or future goals.
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Liquid savings reserved for unexpected expenses or income disruption.
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Total assets minus total liabilities.
Retirement InvestingWithdrawal Rate
Annual portfolio withdrawals divided by the portfolio's starting or current value.