IPS: A roadmap to financial success

Suppose you were about to embark on a trip. Let’s imagine that you know where you want to go, but you are not really sure how to get there. What are your options?

Suppose you were about to embark on a trip. Let’s imagine that you know where you want to go, but you are not really sure how to get there. What are your options?

One is to hop in the car and go … wing it. Sooner or later you might arrive at your destination. It might take longer. And it would most likely cost more. But it would be an adventure. It might even be fun … at least for awhile.

Another option is to study maps and determine in advance the most efficient route, then formulate a detailed travel plan. This approach may not sound as exciting. But of the two options, it is the more likely to succeed. And in the end, chances are it would be a lot less stressful.

Unfortunately many of us go through life winging it with our finances.

What does money mean to you? And what do you expect money to do for you? Or, what do you expect it to do for your children, or your grandchildren?

Ideally you should know the answers to these questions.

Perhaps more importantly, your financial advisor should know the answers to these questions.

A popular tool for identifying and documenting these and other important considerations is the Investment Policy Statement.

As the cornerstone of your wealth plan, the Investment Policy Statement (IPS) documents the following:

• Your liquidity requirements: short-term needs for cash

• Your income requirements

• Taxation considerations

• Time horizon: when will you need your money

• Your risk tolerance

• Your attitudes towards investing

• Your values

Based on these considerations, your IPS then provides detailed guidelines that will serve to govern the management of your investment accounts.

An asset mix is determined, and protocols are established that will mandate the manner in which your accounts will be monitored and adjusted going forward. The IPS should also clearly identify the fees you will pay, as well as how you will pay them.

In addition to promoting communication and understanding, the IPS details the responsibilities of all parties involved in the management of your money, and holds all parties accountable.


Jim Grant, CFP (Certified Financial Planner) is a Financial Advisor with Raymond James Ltd (RJL). The views of the author do not necessarily reflect those of RJL. This article is for information only. For more information feel free to call Jim at 594-1100.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

WATCH: Cops for Cancer Tour de Rock pedals into Parksville Qualicum Beach

Volunteer LeMoine doesn’t get locks shaved but still finds a way to raise funds

Oceanside Folk/Roots Club to hold first show Oct. 2 in Qualicum Beach

Community hall to serve as venue for performances

Committee endorses $4.5M Qualicum Beach all-season turf project

Letter of support sought from regional district for grant application

B.C. records 98 more COVID-19 cases, most in Lower Mainland

One new senior home outbreak, Surrey Memorial outbreak over

PHOTOS: 2nd calf in a month confirmed among Southern Resident killer whale pod

Center for Whale Research said they will eagerly await to observe the calf to evaluate its health

97 distressed horses, cats and dogs seized from farm in Princeton

RCMP assisted as BC SPCA executed search warrant

$250K reward offered as investigation continues into Sea to Sky Gondola vandalism

Police also asking for specific footage of Sea to Sky highway around time of incident

Trudeau ‘disappointed’ by RCMP treatment of Sikh officers over mask issue

World Sikh Organization of Canada said taking Sikh officers off the front lines constitutes discrimination

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Liberals reach deal with NDP on COVID-19 aid bill, likely averting election

NDP and the Liberals have reached an agreement on COVID-19 sick-leave

Money laundering inquiry delayed over of B.C. election: commissioner

Austin Cullen says the hearings will start again on Oct. 26

2 British Columbians arrested, 3 at large in massive Alberta drug bust

Eight people are facing 33 charges in what police have dubbed Project Incumbent

Most Read