"Investment Policy"

Chapter 1: Investment Policy

Definition: a coherent set of guidelines for managing financial assets and is in line with a client's goals and the realities of investment markets.

(from the College for Financial Planning)

Like... a birth plan...if you will. If you won't, that's okay because I will.

Every pregnant woman is told (via books, hospitals, midwives, ob-gyns, mom blogs, apps, and the woman in front of them at the deli counter), that they need to develop a birth plan.

For those of us who have not yet had babies, a birth plan is... the same as an investment policy...

"A coherent set of guidelines" ... for when you're the opposite of coherent--dropping F-bombs, and puking into a bed pan because it's closer than the puke bucket--and decisions need to be made (i.e. c-section, natural birth, drugs or no drugs, freedom to move, constant or intermittent fetal monitoring, clamping and cutting of the umbilical cord, skin to skin, etc.).

"for managing financial assets" ... financial...fetal... same diff.

"and is in line with a client's goals" ... baby. out. now.

"and the realities of investment markets" ... for facing those real life moments...when all goes well and perfectly according to plan, or baby suddenly goes into distress, or mommy is at her whit's end and begs for anything to stop the pain, or baby comes out with no apgar scores and there is no time for skin to skin... or when baby comes out perfectly fine and the bloody little alien monkey is placed for the first time on mommy's warm chest...

When developing an investment plan (or birth plan), one must asses their own personal risk tolerance (coughpaintolerancecough). Goals are ranked according to priority, expectations are clarified, and basic guidelines are constructed to ensure follow through and adherence to the desires and values of the individual.

Just like labor and delivery can be unpredictable, the stock market can be just as volatile--the stock market may drop in a couple of weeks and you're tempted to sell--or grow and your wonder why you're in bonds and maybe you should shift your assets into stocks right away!

It is during those times of uncertainty, an individual can lose his or her way... an investment policy is there to see everyone through to that miraculous moment, when those financial assets are placed into the hands of the client.

"The Change"

Sooo.... you thought puberty was a thing of the distant past.
Welcome to your retirement puberty.

Section 9. {Out of 12! Almost there!} Asset Management & Investment Strategy During Retirement

Executive Summary:
When you retire, everything changes. Kids are gone (maybe...), house is paid off (right...)... You're all grown up, no more bosses telling you what to do, you're free!!  You finally know who you are and what you want. It's time to settle down and relax. Time to cash in your IRAs, file for Social Security, and dive into all that cash a-la Scrooge McDuck.

You sit down with your investment dude or dudette and the questions come...

Oh wait... there are different types of Retirement Plan Distributions? I can take it all now?? or in chunks?? over time?? This will effect my beneficiaries? This will effect my taxes? If I wait to take my Social Security, I can get more in the long run? But I need it now! I don't? Do I?

AHHHH!!!

Enter, the Retirement Planner.