Investment Policy Statement Essential for Good Financial Planning

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Nationally-Recognized Wealth Managers Promote Benefits of ISPs to Consumers and Financial Planners

In our work with clients, the Investment Policy Statement guides all of our investment decisions

Mosaic Financial Partners' ( Norman M. Boone and Linda S. Lubitz recommend that consumers who engage a financial planner should expect the professional's work to be guided by a mutually agreed upon Investment Policy Statement. "In our work with clients, the Investment Policy Statement guides all of our investment decisions," says Boone. "We create an individualized Investment Policy Statement for every investment management client. Each IPS discusses investment objectives, addresses the client's risk tolerance, details the time horizon and asset allocation for the portfolio and identifies other concerns and wishes of the client. It also outlines the procedures that will be used to implement the investment strategy."

According to Lubitz, while Investment Policy Statements are required for virtually every kind of investor (like pension plans, trusts or endowments) few consumers are familiar with Investment Policy Statements. "The importance of an IPS lies in the transparency it helps create between the financial advisor and the client. While there have been some articles in consumer magazines and newspapers about this important tool," says Lubitz, "we want more people to know that they have the right and the responsibility to request this analysis from their financial advisor." An Investment Policy Statement serves to instill discipline into investment decisions by clarifying the decision-making process that will be used as the investors dollars are put to work. It should also identify how often the portfolio is monitored and what rules are to be followed when rebalancing the allocations.

Boone and Lubitz suggest that people who are already working with a financial advisor ensure that 1) they have an Investment Policy Statement, and 2) it is thorough enough to serve them well. Those who aren't being served by a professional might consider preparing their own document or finding a planner who routinely uses the tool with clients.

Boone and Lubitz have long been champions of the IPS within the financial planning community. They were invited to speak, once again, on the subject at the Financial Planning Association's 2006 national convention, which took place in Nashville October 21-24. Their first article on the subject was published 15 years ago. Ten years ago they offered advisors software templates for developing the document. They have since written a book, published by the highly-esteemed FPA Press called "Creating an Investment Policy Statement: Guidelines and Templates." More recently, they have released a new, sophisticated software solution, IPS Advisor Pro, which offers planners customizable and interactive templates, asset class selection and asset allocation models, with different features for specific types of clients.

For more information, contact Norman M. Boone at Mosaic Financial Partners, Inc. Phone 415.788.1952 or visit To learn more about Investment Policy Statements, visit

About Mosaic Financial Partners, Inc.

Mosaic Financial Partners currently has offices in San Francisco and Lafayette. Founder and President Norman M. Boone and East Bay Managing Director Linda S. Lubitz have been cited as two of "America's Best Financial Advisors" by Worth magazine. Boone has been included on the list every year since its inception in 1994 and Lubitz has been included eleven of those years. They are also among those recognized as "Best Financial Advisors for Doctors" by Medical Economics magazine. Lubitz also maintains a financial planning and wealth management practice in Miami, Florida, The Lubitz Financial Group, of which she is founder and president.

Co-authors of the best selling industry book, Creating an Investment Policy Statement - Guidelines and Templates, and co-creators of the new software IPS AdvisorPro™ ( which helps advisors write customizable Investment Policy Statements, Lubitz and Boone are active on a national and regional level within the Financial Planning Association as well as other professional organizations. They are frequently quoted in both industry trade publications and consumer-oriented financial press.

Note: When you need an expert to speak on complicated financial topics in an easy-to-understand and lively way, please call the nationally-recognized advisors at Mosaic Financial Partners.


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Norman M. Boone, CFP
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