Your commitment to a disciplined Investment Plan includes crafting your own statement to use as guidance and report card. This presentation is for the 2015, November 3 meeting of Milwaukee Bogleheads. Having a written plan helps stay the course when the markets rock and roll. Do It Yourself Investors, the Bogleheads follow the guidance of John Bogle, founder of Vanguard and champion of Index investing for ordinary investors.

1. Investment Policy Statement
Your commitment to a Disciplined Investment Plan
• Bob Schramm
• Milwaukee Bogleheads
• November 3, 2015
Beginner Ages: all ages

2. Benefits of using an IPS
• Foundation for Decisions
• Guideposts: Goals and Review
• Focus during Market Swings
(overconfidence / panic)
• Baseline to Monitor Portfolio Performance
• Evaluate Proposed Changes to Overall Objectives

3. IPS Outline
• Executive Summary
• Investment Objectives
• Investment Philosophy
• Investment Selection Criteria
• Monitoring Procedures

4. Executive Summary
• Current Assets
• Adding Investments
• Risk tolerance (103)
• Asset Mix (105)
• Appropriate Benchmarks

5. Investment Objectives
• What do you want?
• When do you want it?
• Multiple goals

6. Investment Philosophy
• Philosophy directs actions.
• Your theory
• Your ability for risk
• Your diversification
• Trading, Costs, Taxes

7. Investment Selection
Criteria
• Individual stocks or bonds
• Index or Active Mutual Funds
• Fund Style
• Load or No-Load
• Expense Ratio

8. Monitoring Procedure
• How often to monitor portfolio
• How well the portfolios doing
• How well individual choices are doing
• Achieving expected return
• Loses within accepted range

9. Revisiting Your IPS
• Your Investment Policy statement is both your
BLUEPRINT and your REPORT CARD!

10. Boglehead IPS

12. Sample ISPs

13. Sources
• https://www.bogleheads.org/wiki/Investment_policy_state
ment
• http://news.morningstar.com/articlenet/article.aspx?id=794
86&_QSBPA=Y
• http://news.morningstar.com/classroom2/course.asp?docI
d=4439&page=1&CN=com

14. Courses ‘100' from the Morningstar class outline
101: Steps to a Suitable Portfolio
102: Determining Your Goals and What They'll Cost
103: How Much Risk Can You Tolerate?
104: Building Your Emergency Fund
105: Determining Your Asset Mix
106: Core vs. Noncore Investments
107: A Simple Portfolio
108: Creating Your Investment Policy Statement
109: How Many Investments Should You Have?
110: Avoiding Overlap When Building a Portfolio

15. Milwaukee Bogleheads®
• A DIY investment group, followers of John Bogle's
Index investing strategies, the Milwaukee local
chapter of Bogleheads.
• This presentation was made November 3, 2015 by
Bob Schramm of our chapter.

16. Disclaimer
• All examples are for illustration purposes only and are not
investment recommendations.
• The views expressed in the presentation, are those of the
presenter, commenters, guests and participants and may
not reflect the views of the Bogleheads organization.
• Use your discretion in using examples presented here for
your own investment purposes.