Let’s start this week’s blog with a little test.
Q. A financial plan is to a client’s future as an Investment Policy Statement is to what?
A. An RIA’s fiduciary obligation
B. Prudent management of a portfolio
C. Cornerstone of the portfolio management process
D. All of the above
If you said A, you were right….
If your answer was B, well, you were also right…..
Actually, C is correct also and ….. that makes D the right answer!
Okay, I have to have fun sometime. This week I’m continuing to develop my IPS. I started this process several months ago but it stalled. In the interim I looked into some software programs for this but did not find one that seemed to fit me and my practice. Most of the choices I looked at were 85% canned language and 15% my input. I just don’t believe that’s what an IPS should be. This type of IPS seems to be more of a convenience than a critical piece of portfolio management.