As long as I’ve had money to invest I’ve made sure I had a written plan of my own. It promotes discipline and helps provide direction when positive or negative surprises occur. As circumstances change the IPS can change too, but it should generally look beyond short term market moves and focus on long term objectives.

At SL Advisors all of our clients have an IPS, because we believe it’s important that we agree on what it is we’re trying to achieve together.

The IPS for Individuals consists of six sections*:

Return Objective
Risk Tolerance
Liquidity Needs
Time Horizon
Tax Considerations
Unique Circumstances.

Open and regular communication with clients is a vital feature of our business. Client assets are held at Charles Schwab, the largest provider of custody services in the U.S. with assets of $1.36 trillion and 7.9 million individual accounts (as of June 30, 2010). Client portfolios are completely transparent via Schwab’s extensive website which provides real-time access to accounts and all supporting information. Detailed monthly statements are mailed directly to clients from Schwab.

Explaining what’s happening in financial markets is an important part of the advisor’s role, and a regular two-way dialogue with clients is both welcomed and encouraged. Contact us and see how SL Advisors can help you.

*Institutional clients often need a seventh section on Legal and Regulatory Concerns.

SL Advisors regularly publishes investment research on Seeking Alpha's website. Click on the image below to read more.