Creating Your Own Investment Policy Statement


This week’s AAII Weekly Digest highlights these “must-read” AAII articles:


It is a fact that 90% of womenA Financial Planner’s Guidance for Women on Planning for Retirement will be single at some point during their retirement. According to the 2014–2015 Prudential Research study “Financial Experience & Behaviors Among Women,” nearly half of those age 75 and older are single because of widowhood, divorce or never having been married. This means women need to be proactive when it comes to planning their retirement, and this article offers suggestions for starting the conversation.

Clark M. Blackman

The approach to building your nest egg should be process-driven. You should document the process you will follow in a written plan, an “investment policy statement” (IPS), that incorporates your short-, mid- and long-term financial goals. However, your goals must be realistic, measurable and attainable. Ultimately, you have to make sure the plan—your recipe for success—will work for you as a unique individual.

The phrase, “Don’t put all your eggs in one basket” is one that has been familiar to investors for thousands of years. When one is properly diversified, one is not overly concentrated in one investment. However, investors can invest in a limited number of asset classes and still achieve reasonable diversification. This article outlines how “less is more” when it comes to investing across asset classes.

Although he’s better known for his sweeping—and controversial—economic theories, John Maynard Keynes was a fervent practitioner of capitalism. His rousing success as an investor shows how he embraced markets nearly all of his life. This blog post offers a look at Keynes’ evolution from a spectator to a successful value investor and the godfather of behavioral finance.

Our Member Question for this week is:

If you lose money in a stock, at what point do you intend to sell?


Vote to answer this week’s Special Question: How do you define risk tolerance?

Last Week’s Results:

Which would be the single best way to invest money you wouldn’t need for more than 10 years?


Election Countdown: Will the Outcome Impact Investors’ Outlooks?

11-01-2016-article6The presidential election is upon us and the market has seen rising volatility and declining returns in the run-up to November 8. But what does the election mean for investors in the near and long term? To get a view into the minds of investors, we first asked our readers what they thought was the best investment for the next 10 years. Then we asked whether the election will change their outlook on the stock market. We summarize the results, as well as report on which candidate investors feel will be best for the stock market.

A Lifetime Investment Strategy

Authored by the chairman and founder of AAII, this valuable publication shows you how you can outperform professional money managers and the market over the long run. It’s not available in bookstores, but is one of the many benefits of being an AAII member.




The AAII Weekly Digest is one of the many benefits of AAII membership. To learn more, consider a risk-free 30-day Trial AAII Membership to start becoming an effective manager of your own assets.