A one-page investment policy statement (IPS) for beginners
Copy this one page and keep it: your goal, contributions, allocation, rebalancing, and a simple “what I do in a crash” rule.
Published: 2026-04-26
What is an IPS (in plain English)?
An investment policy statement is a short personal document that answers one question: “What will I do when my emotions want me to do something else?”
You don’t need perfect words. You need clear rules you’ll follow.
The 1-page template (copy/paste)
- Goal: ____________________________________
- Time horizon: ______ years (I won’t need this money before: ______)
- Monthly contribution: €______ (auto-invest on: ______ day)
- Core allocation: ______% global equity ETF + ______% bond/cash ETF (or cash)
- Rebalancing rule: rebalance every ______ (e.g. 12 months) or when a weight drifts by ±______%
- What I do in a market drop: I keep contributions the same; I do not sell core ETFs because of headlines.
- What would make me change the plan: job/income change, timeline change, or a new long-term goal (not daily news).
How to choose an allocation without guessing
If you’re unsure, start with a simple range and pick the one you can stick with:
- 100/0 (stocks/bonds): highest volatility, simplest, longest horizon.
- 80/20: common “sleep-better” mix for long horizons.
- 60/40: lower volatility, slower growth, often easier emotionally.
Your best allocation is the one you won’t abandon during a bad year.
The two behavior rules that do most of the work
- No reaction trades: I do not buy/sell because of a scary week.
- One improvement per quarter (optional): I can improve the plan slowly, but I don’t rewrite it monthly.
When to review your IPS
Put one recurring calendar reminder: once per year. Outside that, only review when your life changes.
Reminder: an IPS is not about predicting markets. It’s about protecting your long-term plan from short-term noise.