Procedures for Modifying This Investment Policy

By Antonio Scott,2014-04-05 01:16
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Procedures for Modifying This Investment Policy

    401k Money Masters: Income Program

    Investment Policy Statement

     Account Title: Client Name _________________________________________

    Social Security Number ________________________________

     Statement of Purpose

    The purpose of this Investment Policy Statement (“IPS”) is to provide guidelines and a general framework that will be utilized by Retirement Capital Advisors, Inc.("RCA") to effectively allocate, supervise, monitor, and evaluate the investment assets in your RCA managed account. This IPS also establishes procedures that you

    will need to follow if your circumstances change and you decide it is necessary to modify this IPS.

     Statement of Objectives

    Your investment objective is to seek CURRENT INCOME consistent through the use of a diversified collection of fixed income debt securities owned in your portfolio. You also would like to receive MINIMAL

    CAPITAL APPRECIATION from your portfolio. You understand that a portfolio seeking this objective will

    under most circumstances be substantially invested in bonds and cash equivalents. However, in order to

    maintain real purchasing power, a small portion of your portfolio will be invested in equity type securities such

    as common stocks and equity mutual funds. You understand that your portfolio will likely experience some

    volatility and may also experience a decline in principal value. If your account is a Taxable Account, subject to capital gains and ordinary income taxes, it is important to understand that RCA’s investment decisions are

    based primarily on investment merit while tax consequences are considered secondarily. These objectives, and

    your asset allocation detailed below, are based upon an investment horizon of TEN years.

Your targeted overall long-term gross rate of return is 6% (before RCA deducts its management fee).

    This target return is based on historical market performances and also upon an investment horizon of ten years

    or longer. You understand that your actual rate of return at any specific point in time may vary widely

    with market conditions over the short term, and the target return is not guaranteed.

     Asset Allocation and Risk Tolerance

    Proper asset allocation is important for adherence to your risk tolerance. The target asset allocation for your

    portfolio is 20% stocks, 80% bonds and cash. RCA will use the following asset allocation ranges in our efforts to meet your return objectives and income needs:

     STOCKS: 15-25% BONDS AND CASH: 75-85%

Because market fluctuations directly affect asset allocation, your portfolio may be rebalanced periodically if

    your asset allocation is outside of the acceptable ranges.

As with any investment program, there will be risk. To reduce portfolio risk, your portfolio may be diversified

    over a broad array of asset classes, country exposure, economic sectors, industries and companies. RCA will

    use all or some of the following asset and sub-asset classes for investing your portfolio:

     Bonds: Mutual Funds representing any or all of the below

     Domestic Corporate & High Yield Bonds International Bonds

     U.S. Treasury Obligations U.S. Agency Obligations

     Mortgage-backed Securities Convertible Bonds

     Equity: Mutual Funds representing any or all of the below

     Large Capitalization Domestic Stocks or representative Mutual Funds

     Mid/Small Capitalization Domestic Stocks or representative Mutual Funds

     International Stocks or representative Mutual Funds

     Real Estate Investment Trusts (REITs)

     Cash: Money Market Mutual Funds

     Notification of Changes in Your Financial Situation

    RCA asks you to immediately notify us of any material changes in your financial or family situations that could

    affect your risk tolerance, time horizon, liquidity needs, income needs, target return requirements, tax situation,

    or other unique needs and circumstances. To assure that the established risk and return characteristics of your

    investment portfolio continue to meet your individual circumstances, RCA recommends that you schedule periodic reviews of your portfolio with RCA, no less than annually. You acknowledge and agree that it

    remains your sole responsibility to promptly notify RCA if there is a change in your financial situation or

    investment objectives for the purpose of reviewing/evaluation/revising this Investment Policy Statement.

     Procedures for Modifying This Investment Policy

    This IPS may be reviewed and modified, as you desire. A new IPS must be prepared by RCA and authorized by you in writing, prior to account holdings being affected by requested changes. This document supersedes any other IPS document you have signed.

     Acceptance of Investment Policies and Guidelines

    Please signify your acceptance of the complete foregoing Investment Policy Statement (“IPS”) by signing the appropriate space provided below.

Signature: ___________________________________________________ Date: _________

RCA Advisor: ________________________________________________ Date: _________

    Retirement Capital Advisors, Inc., 11500 Northlake Drive, Suite 100 Cincinnati, Ohio 45249

    Rev. 11/04

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