With an onslaught of new threads related to market timing, I thought it may be a good idea to:
1. Draw up my own investment policy statement.
2. Request others to post theirs (so that I can shamelessly steal from them as I see fit :-D ).
Ok, here goes for my IPS (in bogleheads format):
Objectives:
- To reach a retirement account + brokerage + HSA account balance of 2M ASAP (this is my version of lean-FI).
- To reach a retirement account + brokerage + HSA account balance of 4M in due course of time (this is my version of fat-FI).
Note: the balances considered above do not include anything other than retirement accounts + general purpose brokerage. No home equity, 529 balance, emergency fund, or money specifically earmarked for other purposes is considered in this.
Risk Tolerance:
"High" if traditional definition of risk is used.
I define every day I spend below lean-FI as a "risky day". I invest aggressively after keeping cash emergency fund, so that I can reduce the duration of such a "risky" situation. From that POV, my risk tolerance is low.
Holding LimitsNone
Target Allocation:
I have a small amount of global index (<$50k), and a large amount of individual stocks (> $500k - a hangover from my individual stock trading days before 2013).
Most of my new money go into US Equity (~90%), and some in global equity funds(~90%).
This needs to be reconsidered after I cross "lean-FI" as my risk tolerance will change.
Selection Criteria:
VT, VTI, VOO, FXAIX
Review Process:
Tear up the IPS and replace with a new, shiny one at lean-Fi, and then again at fat-FI.
Rebalancing:
I'll think about it after lean-FI.
Now bring on the facepunches and constructive criticisms.