Apr 04
Investment Policy
What headway are you making with your Investment Policy? As you develop your investment program, here are a few questions to consider.
- What investments do I have at this time?
- What percentage is in stocks, bonds, and cash?
- What are my cash flow needs?
- Do I require income or is it possible to keep my investments in place for five or more years?
- What is my tolerance for risk?
- If you are not sure how to answer this question, I suggest you take the Risk Capacity questionnaire available at this web site.
- What asset classes do I want to include in my portfolio?
- What percentage of my total holdings are committed to each asset class?
- What constraints or limits do I want to place on each asset class.
- In other words, what upper and lower percentage limits will I permit for each asset class. We use +/- 30% for the AA-Mosaic Portfolio.
Consider the above questions as you develop your Investment Policy. It is very important to have a plan of action.
Photograph: American tourist with London bobbies.
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