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DIY Investment Policy Statement

Your personal investing constitution — fill it in once, refer to it always.

What is an Investment Policy Statement? An IPS is a written agreement you make with yourself. It defines your goals, your risk tolerance, how your money will be invested, and the rules you'll follow when markets get scary. Professional advisors charge hundreds of dollars to create one for clients. This template gives you the same framework — in plain English — so you can build yours today.

How to use this document: Work through each section in order. Be honest — especially on risk tolerance. Once complete, sign it, store it somewhere you'll find it, and review it annually or after any major life change.

⚠ Educational Use Only — Not Financial Advice

This template is provided for educational and informational purposes only. It is not intended to constitute, and should not be construed as, financial, investment, tax, legal, or accounting advice. DIY Wealth Planning and Cube Insurance Group are not registered investment advisers under the Investment Advisers Act of 1940 or any applicable state securities law. Completing this template does not create an advisory relationship between you and DIY Wealth Planning or Cube Insurance Group.

All investment decisions involve risk, including the possible loss of principal. Past performance is not indicative of future results. Asset allocation and diversification do not guarantee a profit or protect against loss. The example allocations, fund types, and contribution strategies referenced in this document are illustrative only and may not be suitable for your individual circumstances.

You should consult a qualified, licensed financial professional, tax advisor, and/or attorney before making any investment or financial planning decisions. This document does not replace personalized professional advice tailored to your specific situation, goals, and risk tolerance.

Section 1

Personal & Household Information

Full Name (Primary Account Holder)

Spouse / Partner Name (if applicable)

Date of Birth (Primary)

Date of Birth (Spouse/Partner)

Date This IPS Was Created

Current Household Annual Income (approximate)

Current Total Investable Assets (approximate)

Dependents (names and ages) List anyone whose financial wellbeing depends on you — children, aging parents, etc.

Section 2

Investment Goals & Time Horizons

Tip: List every goal that requires invested money — not just retirement. Include education funding, a home purchase, a business, or financial independence. Rank them by priority so you know which goal to protect first in a downturn.

Goal	Target Amount	Target Date / Years Away	Priority (1 = highest)	Account(s) Earmarked
Retirement
Children's Education
Home Purchase / Payoff
Emergency Fund (target)

Section 3

Risk Tolerance & Capacity

Risk tolerance vs. risk capacity: Tolerance is how you feel about losses. Capacity is how much loss your financial situation can actually absorb. Your investment strategy should respect both — whichever is lower wins.

3A. Emotional Risk Tolerance If your portfolio dropped 20% in a single month, what would you most likely do?

Sell everything — I can't stomach watching it fall furtherConservative: capital preservation is your priority
Sell some and move to safer investmentsModerately conservative: you want to reduce exposure
Do nothing and wait for recoveryModerate: you accept short-term pain for long-term gain
Buy more — it's on saleModerately aggressive: you see downturns as opportunity
Buy aggressively — this is exactly what I planned forAggressive: you have a strong stomach and long horizon

3B. Financial Risk Capacity Rate your ability to absorb a significant portfolio loss without affecting your daily life or near-term goals. Circle or mark your number.

1 = Very low capacity
(job insecurity, high debt, short horizon) 10 = Very high capacity
(stable income, no debt, 20+ year horizon)

3C. Overall Risk Profile (circle one) Based on your answers above, select the profile that best describes your overall approach.

Conservative — Protect principal above all. Accept lower returns to avoid large losses. Typical allocation: 20–30% stocks / 70–80% bonds & cash.
Moderately Conservative — Modest growth with downside protection. Typical allocation: 40% stocks / 60% bonds.
Moderate — Balanced growth and stability. Typical allocation: 60% stocks / 40% bonds.
Moderately Aggressive — Growth-oriented with some stability. Typical allocation: 75–80% stocks / 20–25% bonds.
Aggressive — Maximum long-term growth. Accept significant short-term volatility. Typical allocation: 90–100% stocks.

Maximum Acceptable Portfolio Drawdown (%) What is the largest single-year loss you could accept before you would change your strategy? (e.g., "I can handle a 25% drop but not 40%")

Maximum acceptable annual loss:

Notes / reasoning:

Section 4

Target Asset Allocation

Your allocation is your strategy. This is the most important decision you'll make as an investor. It should reflect your risk profile (Section 3) and your time horizon (Section 2). Revisit this table every year or after a major life event.

Asset Class	Target % Allocation	Acceptable Range (±)	Example Fund / Ticker
U.S. Stocks (Total Market)
International Stocks (Developed)
Emerging Markets Stocks
U.S. Bonds (Total Bond Market)
International Bonds
Real Estate (REITs)
Cash / Money Market
Other:
TOTAL	100%

Section 5

Investment Guidelines & Restrictions

5A. Investment Vehicles Permitted (check all that apply)

Index mutual funds
Exchange-traded funds (ETFs)
Individual stocks
Individual bonds
Target-date funds
REITs
Certificates of deposit (CDs)
Treasury securities (I-Bonds, TIPS)
Actively managed funds
Annuities

5B. Investments Explicitly Excluded List anything you will NOT invest in — individual stocks in certain industries, crypto, options, leveraged funds, etc.

5C. Expense Ratio Limit What is the maximum annual expense ratio you'll accept for any fund? (Most index funds are under 0.20%; actively managed funds often exceed 1.0%.)

Maximum expense ratio:

Preferred fund family (if any):

5D. Tax Strategy

Tax-deferred first (maximize 401k/IRA before taxable accounts)
Roth-first (maximize Roth contributions for tax-free growth)
Balanced approach (contribute to both tax-deferred and Roth)
Taxable account only (no tax-advantaged accounts available)

Section 6

Rebalancing Rules

Why rebalancing matters: Over time, your winners grow and your losers shrink — which means your actual allocation drifts away from your target. Rebalancing brings it back. Without a written rule, most people rebalance too often (wasting taxes and fees) or never (taking on more risk than they intended).

6A. Rebalancing Trigger (choose one or both)

Calendar-based: I will review and rebalance on a set schedule.Schedule: (e.g., annually every January, semi-annually)
Threshold-based: I will rebalance when any asset class drifts more than % from its target allocation.

6B. Rebalancing Method (check all that apply)

Direct new contributions to underweight asset classes first
Sell overweight positions and buy underweight positions
Rebalance within tax-advantaged accounts only (to avoid taxable events)
Use automatic rebalancing if offered by my brokerage / 401k plan

6C. Rebalancing Notes Any additional rules, exceptions, or considerations for rebalancing decisions.

Section 7

Contribution & Savings Plan

Account Type	Annual Contribution Target	Monthly Amount	Notes (employer match, limits)
401(k) / 403(b)
Roth IRA
Traditional IRA
HSA
529 / Education
Taxable Brokerage
Other:
TOTAL ANNUAL SAVINGS

Section 8

Behavioral Guardrails

This section is the most important one. Most investors don't fail because of bad strategy — they fail because they abandon a good strategy at the worst possible moment. Write your rules here so your future self has something to read before making an emotional decision.

8A. Conditions Under Which I Will NOT Change My Strategy List the market events or news headlines that might tempt you to deviate — and commit in writing that you won't. (e.g., "I will not sell during a market correction of less than 30%.")

8B. Conditions Under Which I WILL Review and Potentially Change My Strategy Legitimate reasons to revisit your IPS — not market noise. (e.g., job loss, new child, retirement within 5 years, inheritance.)

8C. My "Panic Plan" — What I Will Do Before Making Any Major Change Write a specific process you'll follow before selling or changing your allocation during a downturn. (e.g., "I will wait 72 hours, re-read this IPS, and call my advisor before making any change.")

Section 9

Annual Review Checklist

Use this checklist each year when you sit down to review your IPS. Check off each item as you complete it.

Review and update personal information (income, dependents, life changes)
Confirm investment goals are still accurate; update target amounts and dates
Reassess risk tolerance — has anything changed in your life or finances?
Compare actual allocation to target allocation; rebalance if outside acceptable range
Review all fund expense ratios; replace any that exceed your limit
Confirm contribution amounts are maximizing available tax-advantaged space
Review beneficiary designations on all accounts
Check that emergency fund is fully funded before reviewing investment accounts
Note any major life events that may require an IPS revision
Update the "Date Last Reviewed" field below and re-sign

Date Last Reviewed

Next Scheduled Review Date

Section 10

Commitment & Signature

By signing below, I acknowledge that I have read and understand this Investment Policy Statement and commit to following the investment strategy outlined herein to the best of my ability. I understand that:

This is a personal policy statement, not a legally binding contract.
This document was not prepared by a licensed financial advisor and does not constitute financial, investment, tax, or legal advice.
DIY Wealth Planning and Cube Insurance Group are not registered investment advisers and this template does not create an advisory relationship.
I may revise this IPS at any time following a legitimate life change, after careful consideration and not in response to short-term market movements.
I should consult a qualified, licensed financial professional before making significant investment decisions.

Signature (Primary Account Holder)

Date

Signature (Spouse / Partner, if applicable)

Date

Important Disclosures & Limitations

No Advisory Relationship. This document is provided by DIY Wealth Planning, a financial education brand operated by Cube Insurance Group. Neither DIY Wealth Planning nor Cube Insurance Group is a registered investment adviser, broker-dealer, or financial planner. Use of this template does not create a client relationship or advisory agreement of any kind.

Educational Purpose Only. The content of this template — including all example allocations, contribution strategies, fund types, risk profiles, and rebalancing guidelines — is provided solely for general educational and informational purposes. It is not tailored to any individual's financial situation, goals, risk tolerance, tax status, or investment experience.

Investment Risk. All investing involves risk, including the possible loss of principal. Asset allocation and diversification strategies do not guarantee a profit or protect against loss in declining markets. The example allocations shown in this template are illustrative only and are not recommendations.

Tax & Legal Considerations. Nothing in this document constitutes tax or legal advice. Contribution limits, account eligibility rules, and tax treatment of investment accounts change frequently. Consult a qualified tax professional or attorney for guidance specific to your situation.

Seek Professional Advice. Before implementing any investment strategy, you should consult with a qualified, licensed financial adviser, tax professional, and/or attorney who can evaluate your complete financial picture and provide advice appropriate to your individual circumstances. A free consultation with a Cube Insurance Group advisor is available at calendly.com/cube-insurance-broker/30min or by calling 813-809-3015.