The Prompt
Create a formal Investment Policy Statement (IPS) for client [Client Name].
Client information:
- Client name: [name]
- Account type: [individual/joint/trust/retirement]
- Total investable assets: [$amount]
- Time horizon: [years]
- Risk tolerance: [conservative/moderate/aggressive]
- Tax status: [taxable/tax deferred/tax exempt]
Investment Policy Statement sections:
1. PURPOSE AND SCOPE
2. INVESTMENT OBJECTIVES
- Primary objective
- Return target: [%] annually
- Income requirement: [$amount/year]
3. RISK PARAMETERS
- Maximum acceptable loss in any year: [%]
- Risk tolerance classification
4. ASSET ALLOCATION POLICY
- Target allocation with ranges:
Stocks: [%] (range [%-% ])
Bonds: [%] (range [%-% ])
Cash: [%] (range [%-% ])
Alternative: [%] (range [%-% ])
5. INVESTMENT SELECTION CRITERIA
- Security selection guidelines
- Prohibited investments
6. REBALANCING POLICY
- Rebalancing trigger: drift of [%]
- Rebalancing frequency
7. PERFORMANCE BENCHMARKS
- Benchmark indexes
- Review frequency
8. RESPONSIBILITIES
- Advisor responsibilities
- Client responsibilities
9. REVIEW AND AMENDMENT PROCESS
Format as formal legal-style document
Date and signature lines at end
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