Investment policy statement Essay

Return Requirements * Tax minimization a continuing collateral goal * Inflation adjustment enhancement of investments- real harvest-home of capital with realistic extra return if possible.Risk Tolerance * investment risk very low risk 1. The Muellers have been managing their own investments and ar familiar with risk but may not understand vo hand outiliity alone due to their high portion of volatile stocks within the portfolio 2. Want to digest for their daughters college education 3. Very high tax bracket (30% on income and 20% on electronic network realized gains)ConstraintsTime skyline The Muellers are relatively young and have still a lot of time to work and likely saving for retirement is in their agenda. The primary(prenominal) goal is to provide for their daughters education and expenses associated with it. This goal would be considered long-term but is relatively short in comparison to possible saving for retirement.Liquidity Requirement There is an ongoing strea m of income available. Their may still be some liquidity needs in rove to provide for the expenses of the college education along with life expenses associated with both The Mullers and their daughter.Taxes The family is in the highest of brackets. Future investments should take that into account on an indefinite basis. Tax-sheltered investments should be considered and will likely benefit the family more than high yields that are taxable. efficacious and Regulatory The Muellers would like to monitor their own investments, so their investments are loosely only governed by state law.Unique Circumstances Past undone investments of $100,000 can be used to offset tax distributions on net realized gains. Most important aspect and is unique to the saturation, Incoming expenses of $90,000 for the archetypical year of college and then consistent four more years of $40,000 of college expenses.