Stop Making Simple Investing Mistakes With an Investment Policy Statement (SB1738)

10 snips

Sep 22, 2025

In a lively discussion, the hosts dive into the importance of an Investment Policy Statement (IPS) as a safeguard against emotional investing. They outline steps to build a solid IPS, focusing on specific goals, liquidity needs, and risk tolerance. Expect amusing trivia about Joan Jett, and a cautionary tale about TikTok and Apple Pay. The conversation emphasizes regular reviews and rebalancing to create a reliable investment strategy, making financial planning feel less like guesswork and more like an empowered adventure.

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ANECDOTE

You Only Lose Money When You Sell

OG says you only lose money when you sell, so an IPS helps avoid selling during downturns.
He explains that a long-term plan behaving as expected prevents panic selling and realized losses.

INSIGHT

Write Your Beliefs Down First

An Investment Policy Statement (IPS) captures your belief system about investing and guides behavior during turmoil.
Writing it calmly ahead of market stress reduces reactionary mistakes when markets fall.

ADVICE

Start With Specific Goals

Start an IPS with a clear purpose and objective tied to your financial plan.
Specify measurable goals like target retirement age or college savings amounts, not vague phrases.

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Ever make a money move in the heat of the moment and wish you could take it back? That’s exactly why a rock-solid Investment Policy Statement (IPS) might be your most underrated financial tool. In this episode, Joe Saul-Sehy, OG, and Neighbor Doug peel back the layers on IPSs—why they matter, how they save you from your own impulses, and the role they play in making sure your investment strategy actually sticks. Think of it as your financial GPS, keeping you on course when market turbulence makes you want to grab the wheel.

But it’s not just about avoiding panic-selling. The basement crew digs into the nuts and bolts of what a good IPS should include, from setting specific goals to handling liquidity needs and keeping your risk tolerance aligned with your lifestyle. You’ll also hear how rebalancing, governance, and regular reviews can transform your investments from “hope and pray” into a system you can rely on. Along the way, expect the usual SB tangents: a Joan Jett–themed trivia challenge, a TikTok tale about Apple Pay gone wrong, and more than a few moments where Doug forgets he’s not supposed to run the show.

By the end, you’ll not only understand how to create (or update) your IPS, but you’ll also see how it connects directly to building confidence in your financial plan. Whether you’re brand new to investing or a seasoned hand looking to sharpen your strategy, this episode delivers the blueprint.

Why an Investment Policy Statement is your best defense against emotional investing
How to set clear goals, liquidity rules, and risk guidelines for your portfolio
The pitfalls most people overlook when drafting an IPS (and how to avoid them)
Smart strategies for rebalancing and reviewing your plan without overcomplicating things
A cautionary tale from TikTok that reminds us all to keep our guard up with payment apps
Listener Q&A on stock sales and the quirks that come with them

Questions You'll Begin to Answer During the Episode:

Do you have a written IPS, and if so, does it reflect your actual goals—or just what you thought they were five years ago?
What emotional triggers most often tempt you to stray from your financial plan?
How often do you review your investments, and is it based on strategy—or headlines?

FULL SHOW NOTES: https://stackingbenjamins.com/simple-steps-for-better-money-management-1738

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