Chartered Retirement Planning Counselor (CRPC) Practice Exam 2026 – Comprehensive All-in-One Guide for Exam Success!

The primary purpose of an investment policy statement (IPS) is to guide financial asset management. An IPS serves as a comprehensive document that outlines the investor's objectives, risk tolerance, investment strategies, and specific guidelines for managing a portfolio. It acts as a roadmap for both the investor and the financial advisor, ensuring that investment decisions align with the investor's overall financial goals.

While outlining investment performance goals is an important aspect of an IPS, it is just one component of the broader guidance that the statement provides. An IPS doesn’t aim to predict market trends; rather, it establishes a framework for making consistent investment decisions in various market conditions. Additionally, while minimizing capital gains taxes may be a consideration within the investment strategy, it is not the primary focus of an IPS. The main thrust of the document is to deliver structured guidance that helps in the effective management of financial assets according to the investor's specific circumstances and objectives.