Do You Have a Written Investment Plan?

Investing is a trade-off between Risk and Return. On the one hand, lower-risk investments may guarantee your money but often provide lower returns.

On the other hand, many investments striving for higher returns can come with a greater level of risk. The trade-off is finding the right balance for you.

Your written investment plan (also called an Investment Policy Statement (IPS)) should detail the amount of risk you are comfortable with, along with your expected rate of return.

Your plan should be based on the following variables:

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Why You Should Work With a Discretionary Portfolio Manager

Portfolio Managers are discretionary, meaning they can make investment decisions on their client’s behalf fast and efficiently since they generally do not need to call their clients every time, they want to make an investment decision.

“They do this by creating an individual written agreement or Investment Policy Statement (IPS) with their clients to establish and set out how their clients will work with them, including ongoing communication, types of investments, reporting, fees, risks and other issues related to their clients’ own circumstances.”[1]

Having discretionary trading authority is important, especially during market volatility, where the advisor needs to adjust a client’s portfolio to protect them or to take advantage of a unique opportunity that presents itself.

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