Personal Finance
Investment Policy Statement
Definition
What is Investment Policy Statement?
A written document stating investment objectives, risk limits, allocation, liquidity 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.
Personal FinanceEmergency Fund
Liquid savings reserved for unexpected expenses or income disruption.
Personal FinanceNet Worth
Total assets minus total liabilities.
Retirement InvestingWithdrawal Rate
Annual portfolio withdrawals divided by the portfolio's starting or current value.