The purpose of this investment policy statement (IPS) is to:
Establish basic governing guidelines
Establish the investment objectives and goals for my investment portfolio
Define the target asset allocation and rebalancing procedures
Determine the types of investments I will use
Establish a framework for how I will select investments
Create rules for how I will monitor my investments
Establish an agreement with client acknowledgment and signature
This IPS is intended to serve as a decision-making tool and discipline framework. It is intended to be specific, yet flexible enough to be practical.
Standard of Care
Lifestyle Wealth Partners LLC acts as a fiduciary in its capacity as adviser to the client(s) and acknowledges that all advice and decisions rendered must reflect first and foremost the best interests of its clients.
Organizational Structure of Investments
Lifestyle Wealth Partners LLC offers both discretionary and non-discretionary investment management advice.
For clients who do not have discretionary accounts held at Charles Schwab, the ultimate responsibility of investment guidance implementation rests with the client(s) in both timeliness, and completeness, of investment advice implementation.
For clients who DO HAVE discretionary accounts held at Charles Schwab, Lifestyle Wealth Partners LLC will take every action to ensure the timeliness, and completeness, of investment advice implementation on those specific accounts.
Risk Management Structure
Lifestyle Wealth Partners LLC will offer investment management recommendations in accordance with the prevailing client(s) risk tolerance questionnaire completed by the client and documented in the designated client folder.
Stock, bond, and cash composition percentages will fall within the 0 to 100% range based on said client(s) risk tolerance results.
Managing External Advisors
If external advisers are recommended/used in implementing the investment portfolio recommendations, the registered investment advisor may consider a variety of factors, such as the expertise and experience of the adviser, the specific services they can provide, and the fees and other terms of their engagement. The registered investment advisor may also consult with the clients to ensure that the external adviser is a good fit for their needs and investment objectives.
Once an external adviser has been engaged, the registered investment advisor is responsible for overseeing their work and ensuring that they are providing the services agreed upon. This may involve regular communication and coordination with the adviser, as well as monitoring their performance and the results of their work.
If the registered investment advisor determines that an external adviser is not providing the expected level of service or is not a good fit for the portfolio, they may choose to discharge the adviser and engage a different adviser to provide the necessary services. In making this decision, the registered investment advisor will consider the best interests of the clients and the overall management of the investment portfolio.
Which Assets are Governed by this Agreement
This Investment Policy Statement governs all accounts owned by the clients and their spouse/children assuming they have been presented to the advisor for recommendations by the signing client.
IPS Review Process
During the review process, the registered investment advisor may consider a variety of factors, including changes in the client's investment objectives, market conditions, and the performance of the portfolio. Based on this information, the registered investment advisor may make adjustments to the IPS to ensure that it continues to reflect the client's needs and the current market environment.
Once the review and update process is complete, the updated IPS should be shared with the clients to ensure that they are aware of any changes to the investment policy and strategies. This will help to maintain transparency and trust between the registered investment advisor and the clients.
The prevailing client(s) possible asset allocations will be considered annually. Client asset allocation exposure is incorporated as a part of this investment policy statement. It shall consider the proportions of investments in cash equivalents, fixed-income securities, equities, and other asset classes. The registered investment advisor shall consider expected returns and correlations of returns for a broad representation of asset classes in the capital markets, as well as anticipated changes in economic and market conditions. The registered investment advisor shall also consider the client's investment objectives and constraints in determining the appropriate asset allocation for the portfolio.
Investment Objective & Purpose
This IPS is intended to serve as a decision-making tool and discipline framework.
It is intended to be specific enough to meet the client(s) investment portfolio growth goals including associated risks.
Yet flexible enough to be practical in meeting the client(s) retirement goals including associated risks.
Investment Allocation Targets
Investment allocations will remain broadly flexible. The risk spectrum can range from 100% cash to 100% stock based on the specific objectives of the account.
Overall asset allocation across accounts should be within an acceptable range similar to what is determined in the formal risk tolerance completed and maintained in the client folder.
Types of Investments
Lifestyle Wealth Partners LLC and its representatives reserve the right to recommend any investment it thinks will serve the goals of the customer while considering the client(s) risk tolerance.
Lifestyle Wealth Partners LLC and its representatives will generally avoid illiquid, expensive (larger than 1% annual fee), or overly complicated investments. A good example of an investment to avoid would be a variable annuity.
Lifestyle Wealth Partners LLC and its representatives will generally recommend simple, broadly diversified, low-cost investments. A good example of a typical recommendation would be VOO - a low-cost exchange-traded fund.
Framework for selecting Investments
Because new investments continually come to market & old investments regularly become popular, below is a framework for how I will select investments for my portfolio.
Fees:
Recommended investments will primarily include investments with less than a .5% all-in management fee.
Investment style:
Lifestyle Wealth Partners LLC believes trying to outperform the market is something only the most risk-seeking should attempt.
As such, we will primarily recommend broadly diversified low-cost index exchange-traded funds.
We may include some low-liquidity investments due to the ever-shrinking client time horizon.
Taxes:
Lifestyle Wealth Partners LLC will primarily recommend low tax-generating investments like exchange-traded funds.
Access:
Lifestyle Wealth Partners LLC will primarily recommend high-liquidity investments.
Lifestyle Wealth Partners LLC will primarily avoid low-liquidity investments.
Complexity:
Complex investments tend to lead to high costs, high turnover, and low liquidity.
Lifestyle Wealth Partners LLC will primarily recommend simple investments like low-cost, highly liquid exchange-traded funds.
Monitoring the Investments
The client(s) Investment Portfolio will be monitored regularly throughout the calendar year via the account aggregation tools available.
Review of the client(s) Investment Portfolio will happen no less frequently than once per calendar year.
Portfolio re-balancing will occur if regular monitoring identifies a particular investment position that is not in alignment with the client(s) investment objectives and risk tolerance.
Responsible Parties of this Agreement
Lifestyle Wealth LLC is responsible for determining the language and constraints of the investment policy for the firm. It is also responsible for coordinating updates to the Investment Policy, including soliciting input from the designated tax and legal advisers to the firm's client(s).
Lifestyle Wealth Partners LLC shall promptly notify the client(s) of the need for updates to the Policy and/or violations of the Policy in implementation.
Lifestyle Wealth LLC AND the client(s) are responsible for executing the investment policy in a timely and thoughtful manner.
Lifestyle Wealth LLC AND the client(s)are responsible for monitoring the results of the implementation of the investment policy, using agreed-upon performance evaluation metrics and benchmarks to assess the effectiveness of the investment strategy and identify any areas for improvement.
The firm’s client(s) shall be responsible for approving the Investment Policy Statement and all subsequent revisions to it.
Investment Policy Acknowledgment & Acceptance
The client is required to acknowledge and accept the Investment Policy Statement by signing electronically below.
