Poll

Do you have a Investment Policy Statement?

Yes written down, and I follow it religiously
21 (28.8%)
Yes, in my head, pretty much follow it
31 (42.5%)
Not yet, haven't got around to it yet, but want to
10 (13.7%)
Nope
8 (11%)
Not needed- eg: I only own VSTAX all the wayyyy baby, so don't need one
3 (4.1%)

Total Members Voted: 72

Author Topic: What is your sweet n short IPS? (Investment Policy Statement)  (Read 8462 times)

dandypandys

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I am researching IPS at the moment- https://www.bogleheads.org/wiki/Investment_policy_statement
I found this helpful one that i dug up on an old thread from a mmm'er, hope you don't mind kudy!:  http://www.monetarymusings.com/investment-policy-statement/

For all of us newbies who are also struggling to come up with their asset allocation because they don't have a scooby, only a fledgling scrappy, it might be cool and lovely if those who want to, share their version below:


What is your sweet n short IPS?

Objectives:

Risk Tolerance:

Allocations:

Selection Criteria:

Other Notes:


JZinCO

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Re: What is your sweet n short IPS? (Investment Policy Statement)
« Reply #1 on: April 04, 2016, 06:09:02 PM »
My 'financial plan' is a sweet little infographic made in Vizio and is two pages. On pg 1 I have a little flowchart that shows the buckets that my money goes into (taxes, retirement accounts, checking etc) with a small box below that explains the philosophy. Also on pg 1 is a series of colored boxes that show my asset allocation, and again is a small box with a few lines which explains my philosophy (edit: And basically resembles the linked IPS on monetarymusings).

Page 2 is a series of images of long term projections that I use for reference whenever in doubt or mistakenly considering a change.
It's kind of like the image here: http://cdn.iwillteachyoutoberich.com/wp-content/uploads/2014/10/how-to-automate-your-finances-735x1024.jpg

The most significant value it adds is that it makes financial decisions into following an algorithm based on rules rather than emotion.
« Last Edit: April 04, 2016, 06:15:08 PM by JZinCO »

dandypandys

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Re: What is your sweet n short IPS? (Investment Policy Statement)
« Reply #2 on: April 04, 2016, 06:14:11 PM »
I love that info graphic approach, very appealing. I might have to make one for meself.

Frankies Girl

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Re: What is your sweet n short IPS? (Investment Policy Statement)
« Reply #3 on: April 04, 2016, 06:21:53 PM »
Never really wrote it down as it was pretty simple:

Objectives: To avoid living in a cardboard box under a bridge and also to never have to work at a job I hate again.

Risk Tolerance: High but technically only because I understand the difference between volatility and risk - I am fine with being a high percentage in stocks since I invest in index funds.

Allocations: 80% total stock index; 10% bond index; 8% REIT index; 2% cash

Selection Criteria: index funds with low ER


Other Notes: None really. Said it was simple. :)

Eric

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Re: What is your sweet n short IPS? (Investment Policy Statement)
« Reply #4 on: April 04, 2016, 06:53:52 PM »
Eric’s Investor Policy Statement:

Investment Philosophy:  You’re not a Harvard MBA and you cannot beat the market in the long term.  Even if you were a Harvard MBA, you most likely still couldn’t beat the market in the long term.  Buy and hold Vanguard Total Market funds with low expense ratios.

Asset Allocation:  Maintain overall 80% stock + 20% bond allocation.  Assets should be diversified across major asset classes including domestic equity, international equity, domestic bonds, and international bonds.

Target Allocation:
VTSAX - Total Stock Market Fund 50% - Roth IRA / Taxable / Traditional IRA
VTIAX - Total International Stock Market Fund 30% - Taxable / Roth IRA
VBTLX - Total Bond Fund 13% - Traditional IRA
VTABX - Total International Bond Fund 7% - Traditional IRA

Other considerations:  Invest as soon as possible.  Time in the market, not timing the market.  Rebalance yearly if off more than 5%.  Try to shelter tax-inefficient funds in tax-advantaged accounts to reduce tax burden: Bonds go in t-IRA accounts, Total International Stocks go in Taxable accounts, and Total Domestic Stocks fill the rest of the space.

~~~~~~~~~~~~~~
That's it.  I picked my AA by looking for the Vanguard Target Date fund (in this case 2035) that most closely matched my desired 80/20 stock/bond ratio and choosing the funds contained therewithin.  (with a bit of rounding)

2Birds1Stone

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Re: What is your sweet n short IPS? (Investment Policy Statement)
« Reply #5 on: April 04, 2016, 07:40:36 PM »
Personal Investment Policy Statement
Goal roll out date to 100% compliance = December 30th 2016

Investment Objectives
Reach financial independence by 2022
Reach full retirement by 2027
Minimize potential tax liabilities
Risk Tolerance
My ability to tolerate the uncertainties, complexities and volatility inherent in the investment markets has been considered in the development of this investment program. The main factors that have influenced my risk tolerance and asset allocation are: age, present financial condition, specific financial goals, discretionary income and its variability, past investment experience.
Asset Allocation
Stocks - Minimum - 50%, Goal - 60%, Maximum - 70%
Bonds - Minimum - 10%, Goal - 15%, Maximum - 20%
Metals - Minimum 5%, Goal 10%, Maximum 15%
REIT - Minimum - 0%, Goal - 5%, Maximum - 10%
Cash - Minimum - 5% Goal - 10%, Maximum - 15%

Accumulation Rate Goals

Maintain a savings rate of at least 50% of gross pay
Maximize Roth(IRA), 401k, and HSA accounts when applicable
Contribute 75% of all bonuses, raises, side income to portfolio

Financial Independence Criteria
No unsecured debt
Fixed living expenses covered by 4% withdrawal rate
No major healthcare issues or foreseen major expenses

Full Retirement Criteria

All of financial independence criteria met, plus the following
Fixed living and discretionary expenses covered by 4% withdrawal rate
95% success rate on FIREcalc/cFIREsim
Reside in lower cost of living area

Plan Revision and Re-allocation Guidelines

Rebalance annually and whenever there is a MAJOR shift in markets
Maintain asset allocation within the outlined bounds
Avoid emotional investment decisions at ALL costs
Only revise this plan if a major life event occurs

CantBanMe

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Re: What is your sweet n short IPS? (Investment Policy Statement)
« Reply #6 on: April 04, 2016, 07:57:01 PM »
Scared money, don't make no money.

Interest Compound

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Re: What is your sweet n short IPS? (Investment Policy Statement)
« Reply #7 on: April 04, 2016, 08:01:40 PM »
Objectives: Invest every last dime. Do not sell under any circumstances, unless it's for living expenses.

Risk Tolerance: High

Allocations: 100% Stocks

Selection Criteria: World-market, cap-weighted index funds. Ignore everything else.

Currently (as of 02/29/2016) -

53.4% - VTSAX - Total USA Stock Index
46.6% - VTIAX - Total International Stock Index
« Last Edit: April 05, 2016, 07:27:55 AM by Interest Compound »

PhysicianOnFIRE

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Re: What is your sweet n short IPS? (Investment Policy Statement)
« Reply #8 on: April 04, 2016, 08:38:40 PM »
Here is my IPS and a line-by-line rationale is linked here.

The answer to many of the questions in Investor Alley is "You need an IPS".

Travis

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Re: What is your sweet n short IPS? (Investment Policy Statement)
« Reply #9 on: April 04, 2016, 09:40:43 PM »
I just wrote this out. I should probably put some real thought into this. Thanks for the links P.O.F.

Objectives: Become FI (but not necessarily retire) before age 50. If I've well and truly won the game by that point, then I'm done playing.  I'm not opposed to part time work post-FIRE if I'm really enjoying it.

Risk Tolerance: Fairly high at the moment. It'll edge down a bit over the next decade depending on a few work-related circumstances.

Allocations: 1.5% cash (2 months expenses), 18% bonds, 18% Int'l stocks, 62% domestic stocks.  On paper it's supposed to be a 2/20/20/58 spread.  TSP G Fund, C Fund, VFWAX, VTSAX.  I'm front-loading bonds and domestic stocks through my tax-advantaged accounts right now so that will skew the numbers a bit until the second half of the year.  I still don't have a firm grasp of what my international allocation should be so it goes up and down.

Other Notes:  If I reach the pension point (20 years US Army) in 6 more years, then I'm done. My pension will cover 95% of the high end of my expenses.  If I get passed over (50% chance right now), then I'll start a second career until I reach a 4% SWR of the higher end of my expenses.  We'll see where I'm at if I want to quit or downshift to part time work.  My current portfolio covers 39% of my FIRE requirement.  We're renting now, but we'll buy when we figure out where we'll be after the Army. I want a 15 year mortgage to get it done with quickly, but not cut too deep into the 'stache.

doggyfizzle

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Re: What is your sweet n short IPS? (Investment Policy Statement)
« Reply #10 on: April 04, 2016, 10:25:38 PM »
I am researching IPS at the moment- https://www.bogleheads.org/wiki/Investment_policy_statement
I found this helpful one that i dug up on an old thread from a mmm'er, hope you don't mind kudy!:  http://www.monetarymusings.com/investment-policy-statement/

For all of us newbies who are also struggling to come up with their asset allocation because they don't have a scooby, only a fledgling scrappy, it might be cool and lovely if those who want to, share their version below:


What is your sweet n short IPS?

Objectives:

Risk Tolerance:

Allocations:

Selection Criteria:

Other Notes:


Objectives: Truly long-term capital appreciation and income growth.  By long-term I mean several generations out.

Risk Tolerance: Low

Allocations: 100% stock in quickly liquid (taxable) accounts; mix of index funds in retirement accounts

Selection Criteria: typically 10-100 hours of research per stock; reading through years of historical SEC filings, investor presentations, WSJ archive articles, etc.  So far it has served me very, very well.  I don't look for a specific ROE, or net margin, as both (especially ROE) are too easily manipulated through excessive use of debt.  I look at FCF over a 2 decade time span, and use the WSJ and SEC archives to search for Goodwill impairment charges.  If FCF has held up, and there are minimal asset write downs (due to management overpaying for growth), then my interest is piqued.  Most of the time, the companies that pass this test also have a multi-decade history of increasing shareholder payouts and operate as a leader in their industry.  My current holdings include: XOM, GIS, T, MO, VZ, ABT, ADP, SO, MMM, KO, MCD, IBM, PG, UNP, PM, JNJ, CL, BDX, and O.  I've dabbled in BAC since 2011 off and on and have made a significant amount of money thanks to TBTF, but do not consider it a core holding.  I avoid most financials, most technology companies, and biotech like the plague.  I don't care about some Silicon Valley upstart making a "tit-stare" app or Facebook or Google pretending not to be advertising companies while burning through shareholder cash on "moonshots."  There's a reason IBM has been around a century and ADP has been around a half-century: they make products that are truly indispensable to our economy, and will be for decades to come.  Ask any bank how they feel about the reliability of a 40 year old IBM mainframe (there are hundreds from the 80s still tunning) or any Fortune 500 HR department about having to give up ADP's payroll service (they won't, nearly 100% retention rate) and you start to appreciate the company that chooses to remain located outside of the "it" area (say Armonk or Roseland).

My little guy is 6 weeks old and already has a portfolio of KO, PG, and JNJ, so for each month of the rest of his life he will get at least one dividend check.

Other Notes:  I consider management of my investments to be my primary job, as my stocks will be providing me (and my progeny) income long after I stop working my day-to-day job.  I typically spend several hours per quarter staying on top of my stocks, both because it is necessary and I love it.

dandypandys

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Re: What is your sweet n short IPS? (Investment Policy Statement)
« Reply #11 on: April 05, 2016, 08:18:22 AM »
Thanks for all the input so far, I for one am finding this so interesting and helpful.

Tyn

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Re: What is your sweet n short IPS? (Investment Policy Statement)
« Reply #12 on: April 05, 2016, 09:26:47 AM »
I have my asset allocation written down, but all the rest has been in my head until now.

Objectives: FI in 12 years (at 45), then decide if I want to move to part time work or how long it would take to reach a retirement figure.  I will probably change job and geographic location during this period so I can plan too much right now.

Risk Tolerance: Medium-High.  I don't hate my job and I'm not overly restricting my lifestyle to save (plus I don't have that much saved yet) so I'm not too fussed about my investment performance.  Once I actually have what I consider a large amount of money I might be more worried about what it's doing.

Allocations: 100% index funds: 20% UK, 40% US, 20% Europe, 10% Pacific, 10% Emerging.  At some point I will start adding an allocation of bonds, once my risk tolerance gets lower.

Selection Criteria: Chosen mostly for low fees.

Other Notes: I probably care less than I should about this, but at the moment my FIRE plan is kind of a hobby rather than a goal to work towards.  My main aim was finding somewhere with a better return than the 0.25% bank account I had my cash in and I lack the patience to pore over fund factsheets and try and work out which I think will perform best.  My projections are based on a 4% return rate so hopefully they'll manage that.  My outlook on finances has changed a lot over the last couple of years, so I'm happy that I can see myself being able to afford a house in the future (this is obviously separate from my FIRE fund, but relates to lifestyle optimization and savings).  If I can reach FI as well I see that as an added bonus.

dividendman

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Re: What is your sweet n short IPS? (Investment Policy Statement)
« Reply #13 on: April 05, 2016, 09:46:43 AM »
Objectives: FI - when 4% total invested assets exceed current spending (the spending has a lot of slack)

Risk Tolerance: High

Allocations: 50% VTI (or Spartan S&P500 in 401k since there is no VTI or anything else good...), 30% VEU, 20% BND

Selection Criteria: Rock bottom MERs meeting bond, international and US allocations

Other Notes: I have a NQDC plan that I also plow into Spartan S&P500 due to lack of other choices. Not sure how to treat the deferred taxes of this and 401k as % of asset allocation quite yet, so just going by the gross numbers for AA right now.

PhysicianOnFIRE

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Re: What is your sweet n short IPS? (Investment Policy Statement)
« Reply #14 on: April 05, 2016, 11:02:19 AM »
I just wrote this out. I should probably put some real thought into this. Thanks for the links P.O.F.

Objectives: Become FI (but not necessarily retire) before age 50. If I've well and truly won the game by that point, then I'm done playing.  I'm not opposed to part time work post-FIRE if I'm really enjoying it.

Risk Tolerance: Fairly high at the moment. It'll edge down a bit over the next decade depending on a few work-related circumstances.

Allocations: 1.5% cash (2 months expenses), 18% bonds, 18% Int'l stocks, 62% domestic stocks.  On paper it's supposed to be a 2/20/20/58 spread.  TSP G Fund, C Fund, VFWAX, VTSAX.  I'm front-loading bonds and domestic stocks through my tax-advantaged accounts right now so that will skew the numbers a bit until the second half of the year.  I still don't have a firm grasp of what my international allocation should be so it goes up and down.

Other Notes:  If I reach the pension point (20 years US Army) in 6 more years, then I'm done. My pension will cover 95% of the high end of my expenses.  If I get passed over (50% chance right now), then I'll start a second career until I reach a 4% SWR of the higher end of my expenses.  We'll see where I'm at if I want to quit or downshift to part time work.  My current portfolio covers 39% of my FIRE requirement.  We're renting now, but we'll buy when we figure out where we'll be after the Army. I want a 15 year mortgage to get it done with quickly, but not cut too deep into the 'stache.

Sounds like a good plan. The pension will be huge if you put in the last 6 years.

 Here is my IPS, no link required.

The Physician On FIRE Investor Policy Statement     

     Objective:
◾Retire early, no later than age 54 / empty nest, most likely earlier.
◾Acquire a large cushion, with > 40x annual expenses and > 50% available before 59.5.

     Philosophy:
◾Invest in a diverse portfolio of Vanguard Index Funds, keeping expenses low.
◾Accept market returns, rebalancing with monthly investments.
◾Risk tolerance quite high. Anticipate withdrawal rate < 3%.

     Asset Allocation
◾60% US Stocks, 20% International, 10% REIT, 10% Bond / Cash.
◾U.S. stocks: Lean toward small and mid-cap value to maximize potential long-term return.
◾International stocks: 50% Developed, 50% Emerging Markets

     Other Considerations:
◾Maximize tax deductions via 401(k), 457(b), HSA, donor advised fund. Front load 457(b).
◾Annual backdoor Roth contributions of $5500 each (spouse and I) in January
◾Tax loss harvest when possible, which will require some attention to balances.
◾Fund boys’ 529 accounts (each February & August).
◾Invest in taxable account monthly.
◾Forego monthly taxable deposits to cover large expenses (vehicles, home improvement).

     Pre-retirement Considerations:
◾Research health insurance options.
◾Consider part time work as an option to transition to retirement.
◾Consider what’s best for the boys / family.

     Drawdown Plan:
◾Set up 457(B) to pay $1000 to $2000/ month.
◾Receive dividends and capital gains as cash transfers to bank account.
◾When cash is needed, sell taxable assets and minimize / optimize capital gains.
◾Attempt to remain in 15% tax bracket to avoid taxes on capital gains (unless tax laws change).
◾Convert 401(k) / IRA to Roth as income / tax bracket allows.
◾Donate appreciated securities to Donor Advised Fund when needed to maintain low tax bracket.
◾At 59.5, evaluate 401(k) / IRA and estimate RMD’s, which kick in age 70.5.
◾Anticipate delaying Social Security to get the maximum benefit, assuming good health.
◾Pay for boys’ college with $2000 to $4000 cash (to obtain tax credits), then tap 529’s.

     Retirement Asset Allocation:
◾10 years of expenses in bonds (in 457(B) and 401(K)).
◾Remainder in Equities, maintaining 3:1 US / International Ratio.
◾Consider decreasing REIT holdings to 5%.

Kaspian

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Re: What is your sweet n short IPS? (Investment Policy Statement)
« Reply #15 on: April 05, 2016, 01:53:27 PM »
Mine's super-short.  Written after having my fingers burned for years trying to performance chase whatever was doing well at the time.  Printed out in July 2012, pinned beside my desk.  But I still get itchy fingers just like everyone else when it comes to selling something which is down on a given year.

Investment Policy Statement

1.  DON'T FUCK WITH THE PLAN!
2.  Dollar cost average 50% of your paycheque automatically into index funds.
3.  Buy in the following allocations:  40% bonds, 20% Canadian, 20% US, 20% international.
4.  In the most tax-efficient manner possible, rebalance at the start of January, the end of June, and whenever you come into extra money.  No other time!
5.  Maintain a 3-month emergency fund.
6.  At 25 times annual spending, you are basically done.
7.  DON'T FUCK WITH THE PLAN!  (I will hit you!)

nereo

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Re: What is your sweet n short IPS? (Investment Policy Statement)
« Reply #16 on: April 05, 2016, 02:54:40 PM »

Objectives:  1) to become FI by age 40.  2) Once we've hit FI, value time over money - particularly when it comes to family

Risk Tolerance:  Very High.  No problems with 2008 or 2001.

Allocations: 80% SP500 index fund (lowest fee possible), 20% international (lowest fee possible).

Selection Criteria: lowest cost (currently with Vanguard)

Other Notes: Never allow home equity to exceed 30% of NW. Never pay down debt early with an interest rate < 5%. Max out tax-advantaged accounts whenever possible. Invest on a monthly basis.  Re-balance every January. Remember that purchases rarely make us happier.

Final note:  Never mistake complexity with superiority. 

Travis

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Re: What is your sweet n short IPS? (Investment Policy Statement)
« Reply #17 on: April 05, 2016, 03:00:44 PM »
Never allow home equity to exceed 30% of NW.

How does that work?  Is that a red line for investments vs paying off the mortgage?

nereo

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Re: What is your sweet n short IPS? (Investment Policy Statement)
« Reply #18 on: April 05, 2016, 03:23:23 PM »
Never allow home equity to exceed 30% of NW.

How does that work?  Is that a red line for investments vs paying off the mortgage?

I put that in a few years ago when I became a home owner for the first time, and I watched friends and read horror stories of people's NW being tied to a single item (their home).

Practically speaking, I've decided not to pay off any debt <5%.  To date that's taken care of my home never exceeding 30% of my NW (we pay the monthly minimum).  It's also a warning to myself against doing massive renovations that will increase the home's value (I love DIY home renovation projects, and I could easily get carried away.  For example, I could take $20k out of savings believing that I could "make" that money back in 2-4 years when we sell.  Not ok, according to my own ISP). Should our home start rapidly appreciating in value (a-la Vancouver) I'd consider refinancing and investing the difference. 
Alternatively, I have a HELOC that's 3.8% - a gradual way of reducing home equity while increasing our index fund investments (we'd increase our investment contributions 1:1).

Finally, it's a guide on what we'll kind of home we might buy in the future.  While in a few years we might be able to afford a home that's 50% of our net worth, I wouldn't pay cash for it - instead i'd a) find something cheaper or b) take out a mortgage (depending on interest rates at the time).  I've seen too many friends buy places they technically can afford, but their principle payments wind up outstripping the amount they save in tax-advantaged and taxable accounts.  That's exactly what I want to avoid.

Just my personal preferences.

Kaspian

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Re: What is your sweet n short IPS? (Investment Policy Statement)
« Reply #19 on: April 06, 2016, 09:27:20 AM »
Never allow home equity to exceed 30% of NW.

How does that work?  Is that a red line for investments vs paying off the mortgage?

I put that in a few years ago when I became a home owner for the first time, and I watched friends and read horror stories of people's NW being tied to a single item (their home).


This is really wise.  It even beats the home equity rule of 90 (i.e., a home should not account for more of your net worth than 90 minus your age.)  Historically, so many people have been burned by seeing their home as "an investment" and losing it all in a one-asset strategy.  But humans have a short memory and the bubble just moves on to a different geographic location--Toronto, then Florida and Arizona, Ireland, UAE, now back in Toronto and Vancouver.  It's like a giant, evil demi-god who stomps around the globe causing bubbles and crashes.

nereo

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Re: What is your sweet n short IPS? (Investment Policy Statement)
« Reply #20 on: April 06, 2016, 10:21:15 AM »

This is really wise.  It even beats the home equity rule of 90 (i.e., a home should not account for more of your net worth than 90 minus your age.)  Historically, so many people have been burned by seeing their home as "an investment" and losing it all in a one-asset strategy.  But humans have a short memory and the bubble just moves on to a different geographic location--Toronto, then Florida and Arizona, Ireland, UAE, now back in Toronto and Vancouver.  It's like a giant, evil demi-god who stomps around the globe causing bubbles and crashes.

Interesting way of looking at it.  Or - like a giant, evil demi-god that we actively feed and encourage to hang out over our town, certain that this time he won't get angry and smash the local economy to bits like he has so many other times.  oh wait, he just did it again... 

you're right, we don't learn.

Kaspian

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Re: What is your sweet n short IPS? (Investment Policy Statement)
« Reply #21 on: April 06, 2016, 10:30:20 AM »
you're right, we don't learn.

It's a level of narcissism, I think.  "Things are different here.  It won't happen to me.  I'm starter than they were.  Bad things don't happen to me.  I'm a special, blessed flower."

dandypandys

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Re: What is your sweet n short IPS? (Investment Policy Statement)
« Reply #22 on: April 06, 2016, 11:52:53 AM »
yup- my house 2005- 140,000
worth today (zillow)  80,000 and that is a maybe.
It was a learning lesson for sure.

ysette9

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Re: What is your sweet n short IPS? (Investment Policy Statement)
« Reply #23 on: April 06, 2016, 01:25:21 PM »
Funny, I was just talking to my husband two nights ago about what this is and how we should write one down for ourselves. He agreed and then we both rolled over and went to sleep. :)

arebelspy

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Re: What is your sweet n short IPS? (Investment Policy Statement)
« Reply #24 on: April 06, 2016, 01:40:26 PM »
My IPS is four letters:
YOLO.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

arebelspy

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What is your sweet n short IPS? (Investment Policy Statement)
« Reply #25 on: April 06, 2016, 01:41:37 PM »
Just kidding.

I need to write one, actually, for my non-RE assets. And for those, too.

Like many things, it's in my head, but worth putting to paper (even digital paper).

Right now I'm about 80/10/10 stocks/bonds/cash, pretty much in line with what I want.

Well actually, I want less cash, but have to hold it due to needing cash reserves for real estate.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

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  • Pencil Stache
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  • Location: Central MA
Re: What is your sweet n short IPS? (Investment Policy Statement)
« Reply #26 on: April 06, 2016, 02:16:51 PM »
Haven't formally written it down yet, but perhaps reading these here will help spur me to.

For now, I'm content to simply stay aggressive, as I have a long time horizon ahead to weather ups and downs. ~100% Stocks (VTSAX), except for my E-fund in a savings account. Currently bolstering savings account in case it proves advantageous to frontload next year with new company match. Will add VFIAX position for diversification as soon as I can afford Admiral Shares.

Risk Tolerance = High

Really need to understand all of the steps involved in my drawdown plan, too. Generally, it involves some combination of a Roth ladder and 72(t) SEPP.

Will follow up when I've had a chance to mull it over further.

MickeyMoustache

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Re: What is your sweet n short IPS? (Investment Policy Statement)
« Reply #27 on: April 06, 2016, 02:44:02 PM »
I do have one written down, but a quick off the top of my head summary:

Objectives: FI in 10 years (43) with a simple investment approach focusing on low cost index funds with tax efficiency always kept in mind.  Max 401k, Roth IRA, HSA, and 529s annually, whenever possible.  Real estate is a possibility in the future.

Risk Tolerance: Medium-High

Allocations:
70% Stocks (60/40 internal split Domestic/International)
20% Bonds
10% REITs (target, using Roth IRAs primarily for this allocation to be tax efficient)

Selection Criteria: low ER, low fee within my given options (multiple 401ks)

Other Notes: I'm heavy in cash right now (20% of total investable assets) while I work out a potential home move, if not I'll do my best to stay patient for what appears to be a good investment opportunity.