Investment Policy Statement

Disclaimer: I reserve the right to tweak my statement at any time but what I won’t do is sell when the market crashes. Notice I said when because crashes are inevitable. As history has shown us, the market rebounds and when you look at it in the long-run, there are many dips but it always goes up. The key to investing in the market is to use it as a long-term investment strategy.

There are three asset classes to invest in:

  1. Paper asset class
  2. Real estate asset class
  3. Business asset class

My current investment strategy is heavily weighted in the paper asset class. I invest in low-cost index funds and while I am in the wealth accumulation phase I am invested in 100% equities. As I approach the wealth preservation phase I plan to change my asset allocation to include bond funds. Approximately 5-7 years out from retirement, I will switch from 100% equities to 70% equities/30% bonds.  I will re-balance annually and perhaps become weighted more and more heavily in bonds.

I am currently maxing out 3 different tax-advantaged accounts:

  1. Employer-sponsored Simple IRA – Vanguard Total Stock Market Index Fund Investor Shares (VTSMX)
  2. Health Savings Account – Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX). I max this out annually but 25% goes to a cash account/debit card for health expenses.
  3. Roth IRA – Vanguard FTSE Developed Markets ETF (VEA).


I maintain an easily accessible emergency fund to cover 3-6 months of expenses in an online savings account. This account also includes funds for a future car purchase and is being grown to include a down payment to purchase a house.  Additionally, I am researching other Vanguard index funds to spread out my equity investments in:

  1. Growth
  2. Growth & Income
  3. Aggressive Growth

My plan is to enter the real estate asset class within the next 5 years to become more diversified. The final asset class I am looking to enter is the business asset class. Stay tuned for future strategies here.