Eight Leading Innovators by Andrew Gluck, CEO Advisor Products Inc.
April 10, 2009
Andrew Gluck, CEO Advisor Products Inc.
Except from the article: Linda Lubitz Boone and Norm Boone, authors of IPS AdvisorPro (ipsadvisorpro.com), have made the writing of investment policy statements easy, methodical and more professional.
The foundation of any wealth management engagement is an investment policy statement. It gives voice to all important elements of an investment advisory relationship — goal-setting, asset allocation, management procedures and communication protocols. Left unspoken, such matters can be ticking time bombs that will obliterate client relationships and cripple your business.
The Boones have created a web-based system with templates that can be customized, making it simpler to create and maintain Investment Policy Statements. Anyone managing other people’s money should be writing investment policy statements and making them living documents that clients value and can rely on. This software promotes that practice in the industry, makes it easier to implement and promulgates a good practice.
This article originally appeared in Financial Advisor, November 2007. Used with permission.
Download the full article Eight_Leading_Innovators – Andrew-Gluck.pdf (1.5 mb).
Step One to Fiduciary
April 10, 2009
This article originally appeared on Inside Information. Used with permission.
Inside Information ~ Filed Under Practice Management, February 2007
Bob Veres, Publisher, Inside Information
“The definitive tool for creating investment policy statements is back — and a LOT more powerful than the earlier version.”
If we’re moving into a fiduciary world, then it seems likely that, eventually, clients will receive some kind of investment policy statement from their advisors — just like qualified plans do, by law, from THEIR advisors today. And why not? The IPS clarifies the purpose of the portfolio, defines how it will be managed, and (most importantly) it becomes something you can come back to if the client starts asking why you weren’t more heavily weighted in emerging markets funds or REITS following some kind of freakish runup. From a compliance standpoint, it creates a clear record of the investment agreement between advisor and client. Wealthier clients like the idea that their assets are being given the same treatment as large pension plans. And if you do decide to manage a client’s 401(k) plan, you need to have an IPS to define the relationship. Read more
A Software Solution to Investment Policy Statements
April 10, 2009
This article originally appeared on MorningstarAdvisor.com. Used with permission.
Joel Bruckenstein, CFP
It has been a long wait, a very long wait, but IPS AdvisorPro® is finally here. This Web-based application that creates investment policy statements was developed by two prominent, highly gifted financial planning professionals, Norm Boone and Linda Lubitz.
Boone is founder and principal of Mosaic Financial Partners in San Francisco. He has been cited by numerous periodicals as one of the best financial planners in the country. Boone has served on the National Board of the Financial Planning Association, the TIAA-CREF Institutional Advisory Board, and the advisory council for Schwab Institutional. His articles have appeared in CCH’s Journal of Retirement Planning, Journal of Financial Planning, and Wealth Manager. Read more
On the Same Page
April 9, 2009
By Ingrid Case, First published January 1, 2009.
Investment policy statements (IPSs), viewed as protective by some advisors and potentially hazardous by others, are getting more attention in this transformed market.
An IPS is a document that explicitly outlines the goals and philosophy of investing for a given client, setting general preferences. Users regard IPSs as an effective tool for keeping planners and clients on the same page, guiding the planner’s efforts and keeping the client’s expectations reasonable and realistic. Now that the markets are in turmoil, there’s more focus on the rationale underlying IPSs.
Many planners use IPSs with certain of their clients, particularly institutional, high-net-worth or highly argumentative clients. Few, however, use IPSs with the majority of their clients, especially when times are good. Read more
Getting Comfortable With Change
April 7, 2009
Norm Boone, MBA, CFP®
As an active proponent of investment policy statements, I have frequent opportunities to speak with advisors about the how and why of using this tool in their practice. While most recognize an IPS’s potential benefits, one question is often raised. “Wouldn’t it be risky to start using IPSs? My clients would wonder why, all of a sudden, I’m using this tool when I’d never mentioned it before. They might question my motivation and lose confidence in me.”
It’s true that change is often challenging for clients. But the fact is that change is constant. In our business, the market fluctuates and there are constant changes in the client’s situation. We also have internal changes in our firms that must be communicated to clients. Still, far too many advisors use their clients as an excuse for not making needed changes. Here are some communication tips for introducing change to your clients: Read more
Put It in Writing – Practice Management
April 7, 2009
By Norman Boone and Linda Lubitz Boone. First published November 1, 2008.
A PDF version of this article can be downloaded here (1 mb).
Bank advisors have lots of reasons to avoid writing investment policy statements (IPS). They’ll say:
- “It takes too much time to go over all the issues with my client and then write an IPS, and get my client to read and approve it.”
- “Clients expect me to start managing their money right away, so it doesn’t make sense for me to delay just to write an IPS.”
- “I’m afraid that by writing an IPS, I’m just giving my client the tools with which to sue me. In fact, my attorney tells me not to put anything in writing if I can avoid it.”
- “My broker-dealer doesn’t allow me to write an IPS.”
- “I like the idea of an IPS, but I’m not sure how to explain the process to my clients or what should go into it.”
This article will address these concerns with an eye toward helping you successfully adopt IPSs as part of what is increasingly considered a “best practice” in the investment world. In these frightening markets it might be particularly helpful to have such a document to refer to. Read more
7 Rules for New (and Experienced) Advisors by Katherine Vessenes, JD, CFP®, RFC®
March 15, 2009
Use an IPS. An Investment Policy Statement is one of the best tools you can use to litigation-proof your business. My favorite treatise on the subject was written by Norm Boone and Linda Lubitz, Creating an Investment Policy Statement. It is an online service you can use to create an IPS for every client. www.IPSaAdvisorPro.com (An IARFC member benefit).
A PDF of the full article can be downloaded here.
