How to Write an Investment Policy Statement -- Titles in the FP BooksTrade Secrets Series -- Wiley Trading Series -- Copyright -- Contents -- Foreword -- Section One: Why Plan Sponsors and All Fiduciaries Need a Formal Process for Writing Their Investment Policy Statement -- Chapter 1: Erisa and the Challenge of Fiduciary Responsibility -- Writing an Investment Policy -- What Is a Fiduciary? -- Fiduciary Liability -- Chapter 2: Your Fiduciary Responsibilities and Liabilities Under Erisa -- Five Fiduciary Responsibilities -- Fiduciary's Personal Liability -- A Fiduciary's Primary Role Is to Manage the Process -- Chapter 3: What is an Investment Policy Statement and What are the Benefits? -- Risk Management -- Monitor Investments -- Summary -- Chapter 4: Utilize the "Safe Harbor" Provisions Provided by Erisa -- Prudent Experts -- Five Recognized "Safe Harbor" Rules -- Chapter 5: Complying with Erisa Section 404(c) -- Section Two: How to Get Started and Steps to Formalize the Process -- Chapter 6: Assembling the Documentation -- Chapter 7: Steps to Formalize the Process -- Step 1: Decide on Plan Goals, Objectives, and Strategies -- Step 2: Decide on Strategy for Managing Risk -- Step 3: Determine the Risk Tolerance of the Plan -- Step 4: Set Forth Guidelines for Asset Classes -- Step 5: Implement an Asset-Allocation Policy -- Step 6: Mutual Funds Recommendations -- Step 7: Delegate Investment Management Responsibility -- Step 8: Investment Monitoring and Reporting -- Section Three: The Template IPS -- Chapter 8: Sample IPS Templates -- Two Distinct IPS Samples -- Organization of Templates -- Chapter 9: Sample IPS Template #1 For a Participant-Directed 401(k) That Intends to Comply with ERISA Section 404(c) -- Step 1. Executive Summary and Background -- Executive Summary -- Step 2. Purpose of the Investment Policy Statement.

Step 3. Duties and Responsibilities -- XYZ Retirement Plan Committee -- Investment Consultant -- Investment Managers -- Custodian -- Step 4. Asset Class Guidelines -- Asset Classes in Ascending Order of Risk -- Diversification of Asset-Class Options -- Asset-Class Index and Peer Comparisons -- Other Considerations -- Step 5. Investment Manager Selection -- Step 6. Monitoring the Investment Managers -- Watchlist Process -- Step 7. Controlling and Accounting for Investment Expenses -- Step 8. Investment Policy Review and Monitoring -- Chapter 10: Sample IPS Template #2 For a High-Net-Worth Individual Setting Up a Family Trust -- Executive Summary -- Table of Contents Investment Policy Statement -- Part I - Purpose -- Part II - Investment Management Objectives -- Establish the Expected Time Horizon -- Part III - Roles and Responsibilities -- Investment Advisor -- Investment Managers -- Custodian -- Part IV - Investment Manager Selection -- Performance Objectives -- Measuring Costs -- Part V - Investment Monitoring and Review -- Advisor's Responsibilities to Gather Information and Report to Investment Committee Monthly -- Advisor's Responsibilities to Gather Information and Report to Investment Committee Quarterly -- Advisor's Responsibilities to Gather Information and Report to Investment Committee Annually -- Monitoring the Custodian -- Part VI - Manager Termination -- Potential Termination Factors -- Part VII - Additional Provisions (optional) -- Conclusion: Message to Plan Sponsors -- Glossary -- Appendix: The Firm Profile -- Investment Philosophy -- About the Author.