What’s a investment policy statement (IPS) is basically a long term goals and asset allocation where you can make yourself accountable for. Here is my IPS that I will follow as I progress to hit my goals/objective. I may later revise it as time goes by and life changes.
- Objective 1 : To retire when I’m 40 years old (currently 29) and travel the world.
- Objective 2: To earn $40,000+ passive annual income through dividends, rental income, blogging, and other side jobs.
- Objective 3: Minimize tax liabilities.
- Objective 4: Purchase 10 single family rental houses with mortgage being paid off. (Currently own 3 rental properties).
- Objective 5: Travel around the world with passive income covering expense.
Maintain 80% stock/20% bond allocation. (Rebalance in tax retirement when portfolio is +/-5%)
- Non-dividend/dividend stocks 25% (Taxable)
- VTSAX - Total stock market index 30% (Taxable, Roth)
- VTIAX - Total International index 25% (Taxable)
- VBTLX - Vanguard total bond index 20% (Ira/Roth)
Revaluate IPS at the end of the year and make any changes accordingly to IPS plan.
Vanguard Asset Allocation Pie Chart
Here is my actual allocation from Vanguard I’m able to track all of my taxable/retirement account from here, and their portfolio analysis is really good in my opinion.
Last updated 8-20-2016
Do you have a IPS or similar platform that you follow?