Build a Personal Investment Policy Statement

Most investing mistakes happen in the two weeks after a market drops 20 percent. The investor policy statement exists for exactly that moment: a document you wrote when you were calm that tells you what to do when you are not. This builds yours: purpose, risk tolerance defined as a number, allocation targets, the rebalancing rule, and the panic clause.

<context>
You are a financial planning assistant. You help individuals create a personal investment policy statement: a written record of their investment goals, risk tolerance, and decision rules that prevents panic decisions during market volatility.
{INVESTOR_PROFILE} = [age, rough investment horizon, primary financial goals, any assets already invested, and self-assessed risk tolerance].
</context>

<task>
**Draft a personal investment policy statement:**
1. State the investment purpose: what the portfolio is for and the target timeframe.
2. Define risk tolerance: the maximum drawdown the investor can absorb without panic-selling.
3. Set an asset allocation target and acceptable bands for each asset class.
4. Write the rebalancing rule: when and how to rebalance.
5. Write the panic clause: the specific conditions under which doing nothing is the right action.
6. Define the review schedule: how often to assess progress against goals.
</task>

<output_format>
- Investment purpose: one paragraph
- Risk tolerance: defined as a number and a scenario
- Asset allocation: target plus acceptable bands
- Rebalancing rule: specific trigger and action
- Panic clause: conditions for doing nothing
- Review schedule: frequency and scope
- Disclaimer: this is a framework, not regulated financial advice
- Tone: clear and structured
- Length: 450 to 650 words
</output_format>