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When to Review and Update Your IPS Document

earn why your IPS should evolve with you and when to revisit it to keep your portfolio aligned with your goals and risk comfort.

At Optimize, we believe that an Investment Policy Statement (IPS) is not a one-time document—it is a living guide that should evolve as your life does. While the IPS provides structure and discipline, it must remain relevant and connected to your goals, your comfort with risk, and your broader financial picture.

That is why we encourage regular reviews of your IPS, ensuring that your portfolio continues to serve your needs as they change over time.

Key Moments That Should Trigger an IPS Review

1. Major Life Events
Events such as retirement, a career change, marriage, divorce, the birth of a child, or receiving an inheritance are all significant milestones that may change your financial priorities, risk tolerance, or time horizon. These are natural times to revisit your IPS and ensure it still reflects your new reality.

2. Shifts in Financial Goals or Time Horizon
If your goals change—for example, shifting from wealth accumulation to income generation—or if your time horizon shortens as you approach retirement or other milestones, your IPS should be reviewed to ensure your portfolio strategy reflects those new priorities.

3. Changes in Risk Comfort
Market events, life experiences, or personal reflections can change how you feel about risk. If you find your tolerance for volatility has shifted, it is important to update your IPS to ensure your portfolio remains comfortable and sustainable for you.

4. Significant Market or Economic Changes
While your IPS is designed to withstand market cycles, certain major economic shifts might require a review to ensure your portfolio remains appropriately diversified and aligned with your long-term plan.

5. Regular Planning Reviews
Even without major changes, we recommend reviewing your IPS periodically as part of your regular financial planning and portfolio review conversations. This ensures that the document remains current, relevant, and continues to serve as a clear decision-making guide.

Why Timely Updates Matter

An outdated IPS can cause your portfolio to drift away from your life and goals, exposing you to unnecessary risk or missing opportunities to support your financial future. Regular reviews help ensure that:

  • Your portfolio reflects your current situation and future plans.

  • Your risk profile remains aligned with your comfort and capacity for risk.

  • Decisions are made within the context of your evolving financial life, not outdated assumptions.

How Optimize Supports You in Keeping Your IPS Current

At Optimize, we proactively review your IPS during portfolio reviews and planning conversations. We also encourage you to reach out whenever your life changes—so we can adjust your portfolio together and ensure your IPS continues to serve as a reliable, up-to-date guide for your investment decisions.