Create IPS

IPS assignment: You are a high-net worth money manager working alone or with one partner and an assistant as an independent SEC-chartered RIA with $200 million in AUM and 25 years in the business. Your custodian is Charles Schwab. The IPS is intended to be presented as a sales pitch to a fictional married couple in their mid-40s with the following considerations

• Assets
  • $2 million in investable assets
  • A $1.25 million house in Stamford with a $700,000 23-year fixed-rate mortgage
  • A $350,000 fully paid ski condo in Stratton
• Dual $200,000 incomes working mid-level in the back office of the same hedge fund with offices only in Greenwich and New York
• Triplet 12-year old healthy children (two girls and a boy who are all avid ski racers)
• No formal college savings accounts
• IRAs worth $80,000 each that are 100% in growth stocks
• All four of their parents passed away in their 60s and 70s due to cancer and heart attacks
• The couple has had breast and prostate cancer themselves
• They do not have life insurance
• They have health insurance from their employer
• They hope to retire at 65

Maximum four pages.

The grading rubric will include your handling of important issues including

1. Presentation
2. Investment objectives
3. Investment timeline
4. Risk tolerance
5. Asset classes to invest in (and possibly which to avoid)
6. Asset allocation targets
7. When to rebalance your portfolio
8. Monitoring frequency
9. Under what conditions you will make changes to you IPS
10. Anything I deem appropriate