In virtually every situation, how successful you are at investing has a profound influence on your lifetime cash flow. Whether saving for retirement, accumulating education funds, or establishing a charitable trust, all of our clients have long term financial goals.
At Foster Group, each client has an Investment Policy Statement (IPS) that describes why they are investing and defines how funds will be invested to achieve the identified goals.
The Foster Group planning team will lead you through a personalized process to determine your risk profile. This profile describes how you "feel" about risk, as well as how vulnerable your plans are to levels of investment risk. Each client receives a thorough explanation and education about the historical performance and behavior of different investment strategies, types of investments, and general asset classes. This education becomes foundational as you evaluate current investments and set policies for future investment decisions.
The culmination of this process is a written, personalized Investment Policy Statement (IPS) that provides guidance for you and your investment advisors.
Academic research, as well as our experience, has shown that people and organizations who take the time to develop an IPS are far more likely to stick with prudent investment discipline in times of euphoric market returns (when greed causes people to ignore risk) as well as during times of apparent bleak economic circumstances (when fear drives people into damaging short-term decision making).