The Importance of a Well-Written Investment Policy Statement

The Importance of a Well-Written Investment Policy Statement

By: Jason G. Young

The stock market is volatile these days, so it can be tempting for many associations to feel like they need to change their investment portfolio with every major fluctuation. Having an investment policy statement handy can keep you from shifting into panic mode, and it can pay dividends down the line.

Investing is a bit like flying. It can be wonderful to soar above the clouds on a beautiful day, and most trips in the air are uneventful at worst. But occasional periods of heavy turbulence will leave passengers white-knuckled, a not-so-gentle reminder they are moving at 500 mph through the air six miles above the Earth in a piece of metal....