The investment policy statement: roadmap to success

It's important to determine exactly what money means to you

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. Ask for directions along the way. 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. Follow the plan diligently, and don’t get sidetracked.

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, often not knowing where it is we are headed, or how to get there.

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. Your attitudes towards money can assist him or her in understanding your values, as well as your expectations.

Ethical considerations are also important to a growing number of investors who are determined to “walk the talk” and are opposed to investing in companies who are not good corporate citizens. Your advisor should understand and respect your views on such matters.

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 Investment Policy Statement 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 an Investment Funds Advisor with Raymond James Ltd (RJL). The views of the author do not necessarily reflect those of RJL. This article is for information only.  Securities are offered through Raymond James Ltd., member CIPF.  Financial planning and insurance are offered through Raymond James Financial Planning Ltd., which is not a member CIPF. For more information feel free to call Jim at 250-594-1100, or email at and/or visit



Just Posted

Morningstar Golf Club in Parksville will host the 2021 B.C. Junior Golf Championships. (PQB News file photo)
Morningstar Golf Club in Parksville to host 150 of B.C’s top junior golfers

Provincial boys and girls championship begins June 28

Hannes Grosse, left, and Iris Steigemann, right, as they prepared for their 'Moments of Silence' exhibit. The father-daughter duo are showing at The Old School House Arts Centre in Qualicum Beach until June 26. (Submitted photo)
Cortes Island artists exhibit at Qualicum Beach’s TOSH in first father-daughter show

Both artists will be present at shows on Friday, June 25 and Saturday, June 26

The Lighthouse Country Marine Rescue Society will get more funding from the Regional District of Nanaimo. (Submitted Photo)
More PQB communities to fund Lighthouse Country Marine Rescue Society

RDN to introduce amendment to service bylaw contribution

A slide on best practices when reporting a suspected impaired driver that was presented to Parksville city council on June 7 by Margarita Bernard, a volunteer with MADD. The organization’s Report Impaired Drivers campaign involves the installation of informative signs within the City of Parksville. (Mandy Moraes photo)
MADD brings campaign to report impaired drivers to Parksville

Aim is to raise awareness that 911 should be called

People line up to get their COVID-19 vaccine at a vaccination centre, Thursday, June 10, 2021 in Montreal. THE CANADIAN PRESS/Ryan Remiorz
Vaccines, low COVID case counts increase Father’s Day hope, but risk is still there

Expert says people will have to do their own risk calculus before popping in on Papa

Queen’s counsel Paul Doroshenko, a Vancouver lawyer, has been suspended from practice for two months after admitting that his firm mismanaged $44,353.19 in client trust funds. (Acumen Law)
High-profile B.C. lawyer suspended over $44K in mismanaged client trust funds

Queen’s counsel Paul Doroshenko admits to failing to supervise his staff and find, report the shortage

House Majority Whip James Clyburn, D-S.C., center left, reaches over to Rep. Maxine Waters, D-Calif., joined by Speaker of the House Nancy Pelosi, D-Calif., center, and members of the Congressional Black Caucus as they celebrate the Juneteenth National Independence Day Act that creates a new federal holiday to commemorate June 19, 1865, when Union soldiers brought the news of freedom to enslaved Black people after the Civil War, at the Capitol in Washington, Thursday, June 17, 2021. It’s the first new federal holiday since Martin Luther King Jr. Day was created in 1983. (AP Photo/J. Scott Applewhite)
Biden to sign bill making Juneteenth a federal holiday

New American stat marks the nation’s end of slavery

Athena and Venus, ready to ride. (Zoe Ducklow - Sooke News Mirror)
Goggling double-dog motorcycle sidecar brings smiles to B.C. commuters

Athena and Venus are all teeth and smiles from their Harley-Davidson sidecar

Kimberly Bussiere and other laid-off employees of Casino Nanaimo have launched a class-action lawsuit against the Great Canadian Gaming Corporation. (Chris Bush/News Bulletin)
B.C. casino workers laid off during pandemic launch class-action lawsuit

Notice of civil claim filed in Supreme Court of B.C. in Nanaimo against Great Canadian Gaming

John Kromhoff with some of the many birthday cards he received from ‘pretty near every place in the world’ after the family of the Langley centenarian let it be known that he wasn’t expecting many cards for his 100th birthday. (Special to Langley Advance Times)
Cards from all over the world flood in for B.C. man’s 100th birthday

An online invitation by his family produced a flood of cards to mark his 100th birthday

FILE – Nurse Iciar Bercian prepares a shot at a vaccine clinic for the homeless in Calgary, Alta., Wednesday, June 2, 2021. THE CANADIAN PRESS/Jeff McIntosh
B.C. scientists to study effectiveness of COVID vaccines in people with HIV

People living with HIV often require higher doses of other vaccines

Most Read