Personal Investment Policy Statement

Prompt

Write a personal Investment Policy Statement (IPS) for my investment portfolio.

Personal context:
- Age: [AGE]
- Investment timeline to primary goal: [YEARS]
- Primary financial goal: [RETIREMENT / HOUSE / COLLEGE / OTHER]
- Current investable assets: [AMOUNT]
- Annual savings rate: [AMOUNT]
- Income stability: [STABLE / VARIABLE]
- Tax situation: [TAXABLE / TAX-ADVANTAGED / BOTH]
- Investment accounts: [401K / IRA / BROKERAGE / OTHER]

Risk profile:
- How would I react to a 30% portfolio drop? [SELL / HOLD / BUY MORE]
- Largest single-year loss I could tolerate without panic-selling: [PERCENTAGE]
- Investment knowledge level: [BEGINNER / INTERMEDIATE / ADVANCED]

Write a complete IPS covering:

1. **Investment Objectives** — Specific, time-bound goals with target amounts.

2. **Risk Tolerance** — Quantified risk tolerance and capacity. Not just "moderate."

3. **Asset Allocation Policy** — Target allocation by asset class with rebalancing bands (e.g., ±5%).

4. **Investment Guidelines** — What I will and won't invest in. Constraints.

5. **Rebalancing Policy** — When and how to rebalance (calendar vs. threshold).

6. **Performance Benchmarks** — How I'll measure success.

7. **Review Schedule** — When to revisit the IPS.

8. **Behavioral Commitments** — Pre-commitments to prevent emotional decisions.