A successful investment strategy should not be based on guesswork, emotion, or short-term market movements. It should be guided by a clear plan. That is the purpose of an Investment Policy Statement, commonly known as an IPS. An IPS is a written document that outlines how your portfolio should be managed. It typically includes your investment goals, risk tolerance, asset allocation.

Although Investment Policy Statements are often associated with institutions and retirement plans, they can be very useful for individual investors as well. A well-developed IPS helps create alignment between you and your advisor by clearly defining the expectations for your portfolio.

At Alliance, we view this as an important part of our client process. It helps us communicate proactively, monitor portfolios consistently, and make sure investment decisions remain connected to each client’s goals and comfort with risk.

It can help investors better understand the risks they are taking, the role each investment plays, and how the overall portfolio is designed to support their long-term investment plan. This can bring structure and clarity to your investment strategy.

If you have questions or would like to review your portfolio, please contact our advisory team. We would be happy to help.

It is important to remember that investments in securities involve risk, including the potential loss of principal invested. Past performance is no guarantee of future results. Diversification does not guarantee a profit or protect against loss in a declining financial market. This publication should not be interpreted as legal, tax, or investment advice. For more information, please visit alliancewealthadvisors.com/legal-disclosures