If you have questions or comments about this topic, check out our Improving Your Portfolio boards . Improving Your Portfolio To order reprints of this article, click here . An IPS spells out an investor's investment philosophy, asset-allocation targets, and expected results. It also lays out a plan for how the investor will monitor his or her portfolio.
Big organizations create IPSs for their company retirement plans.
You need one, too. Because the IPS forces you to put your investment strategy in writing and commit to a disciplined investment plan. Here's what you should include in your IPS, and a sample you can imitate. You need to substitute your own goals, investment-selection criteria, and expected outcomes. You'll come back to your Executive Summary when you rebalance your portfolio.