Essay About Personal Investment And Has Ability

Personal Investment – Investment Policy Statement
Investment Policy Statement (IPS)Table of contentIntroductionInvestment ObjectivesRisk Objectives/goalsReturn Objectives/goalsInvestment ConstraintsTime HorizonLiquidity NeedsTaxesLegal & Regulatory ConstarintsUnique NeedsReturn RateReferenceIntroductionBased on Pierce’s financial information and current situation, we can know that she has a has ability to invest but does not have high willingness investing in risky assets which means she has a medium risk tolerance.Investment Policy Statement Risk ObjectivesAbility $3.25 million liquidity assets (after paying house down payment and  son’s surgery fee)Continuous yearly income of her husbandWell-diversified portfolioLong time horizon WillingnessLow to middle willingnessInvest allocation outside her husband company stockNeed to provide for her son even they are no longer capable of doing soHer husband has taken well above-average in the pastAccording to her invest ability and invest willingness, we would categorize her in the above average to high ability to take risk and low to medium willingness to take risk so she has a medium risk tolerance.