{"url":"https://etfiq.com/academy/planning-deep-dive/investment-policy-statement/","section":"academy","title":"Write your own investment rules | ETFIQ","description":"Write an investment policy statement: a loss limit, a stock share that fits it, and rules for rebalancing and review, set with real benchmark data.","as_of":"Nov 10, 2026","structured_data":[{"@type":"LearningResource","@id":"https://etfiq.com/academy/planning-deep-dive/investment-policy-statement/#lesson","name":"Write your own investment rules","description":"From Jan 4, 2010 to Nov 10, 2026, ETFIQ's 60% stock benchmark's largest fall was 22.31%, $66,930 on $300,000, hypothetically.","url":"https://etfiq.com/academy/planning-deep-dive/investment-policy-statement/","learningResourceType":"Lesson","teaches":"How to write a one-page set of rules (purpose, loss limit, mix, upkeep, review) with numbers from the largest falls of ETFIQ's benchmarks","educationalLevel":"Advanced","timeRequired":"PT8M","inLanguage":"en","isAccessibleForFree":true,"isPartOf":{"@type":"Course","@id":"https://etfiq.com/academy/planning-deep-dive/#course","name":"Planning Deep Dive","url":"https://etfiq.com/academy/planning-deep-dive/"},"position":6,"dateModified":"2026-11-10","author":{"@type":"Organization","name":"ETFIQ Research","url":"https://etfiq.com"},"publisher":{"@type":"Organization","name":"ETFIQ Research","url":"https://etfiq.com"}},{"@type":"FAQPage","@id":"https://etfiq.com/academy/planning-deep-dive/investment-policy-statement/#check","mainEntity":[{"@type":"Question","name":"Why write an IPS before markets fall?","acceptedAnswer":{"@type":"Answer","text":"So decisions made calmly guide you when you're worried. it carries calm choices into a hard day."}},{"@type":"Question","name":"Sam's loss limit is 21%. Using the table, which is the highest stock share whose largest fall stayed within it?","acceptedAnswer":{"@type":"Answer","text":"40%. 40% fell 20.32%, inside 21%; 60% fell 22.31%."}},{"@type":"Question","name":"Alex's 60/40 mix is down 18% from its high. What does the IPS say to do?","acceptedAnswer":{"@type":"Answer","text":"Keep 60% stocks, rebalancing only if stocks drifted outside 55% to 65%. an 18% fall of the mix is inside Alex's 25% limit, and Rule 5 says a fall is not a reason to change."}}]},{"@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"ETFIQ","item":"https://etfiq.com/"},{"@type":"ListItem","position":2,"name":"Academy","item":"https://etfiq.com/academy/"},{"@type":"ListItem","position":3,"name":"Planning Deep Dive","item":"https://etfiq.com/academy/planning-deep-dive/"},{"@type":"ListItem","position":4,"name":"Write your own investment rules","item":"https://etfiq.com/academy/planning-deep-dive/investment-policy-statement/"}]},{"@type":"WebPage","name":"Write your own investment rules","description":"Write an investment policy statement: a loss limit, a stock share that fits it, and rules for rebalancing and review, set with real benchmark data.","url":"https://etfiq.com/academy/planning-deep-dive/investment-policy-statement/","dateModified":"2026-11-10","isPartOf":{"@type":"WebSite","name":"ETFIQ","url":"https://etfiq.com"},"speakable":{"@type":"SpeakableSpecification","cssSelector":[".lede"]},"publisher":{"@id":"https://etfiq.com/#org"}}],"characters":5378,"truncated":false,"content":"ETFIQ / Academy / Planning Deep Dive / Write your own investment rules \n \n Write your own investment rules\n Data as of Nov 10, 2026. Rebuilt every trading night.\n From Jan 4, 2010 to Nov 10, 2026 , ETFIQ's 60% stock benchmark's largest fall was 22.31% , $66,930 on $300,000, hypothetically.\n Planning Deep Dive \u00b7 Lesson 6 of 6 1 2 3 4 5 6 \n Pick an amount. See what each mix's largest fall would have cost. Amount you have $300,000 On $300,000: 20% stocks \u2212$56,220, 40% stocks \u2212$60,960, 60% stocks \u2212$66,930, 80% stocks \u2212$84,450, 95% stocks \u2212$98,220. Hypothetical amount. Largest fall from a high, Jan 4, 2010 to Nov 10, 2026, ETFIQ benchmarks applied to past prices. \n The question\n \"I know the ideas now. How do I turn them into rules I'll actually follow when markets get rough?\"\n The idea\n An investment policy statement (IPS) is a one-page set of rules you write before you need them. Calm-day you writes it; worried-day you follows it. It answers five things: Purpose and time: what the money is for, and when you'll need it.\n Loss limit: the largest fall from a high you can sit through without selling.\n Mix: the stock share that fits that limit.\n Upkeep: when you rebalance and what you'll pay in fees.\n Review: when you'll change the rules, and what does not count as a reason.\n \n It builds on sequence risk , regimes and look-through .\n Worked example\n Alex has $300,000 and won't draw on it for 15 years. We'll use ETFIQ's benchmarks, from 20% to 95% stocks. Their history is hypothetical (each rule applied to past prices). Largest falls cover Jan 4, 2010 to Nov 10, 2026 ; yearly growth covers calendar years 2011 to 2025.\n Rule 1. Purpose. \"Retirement in 15 years. No withdrawals before then.\"\n Rule 2. Loss limit. Alex writes: \"I can sit through a 25% fall from a high.\"\n Rule 3. Mix. Find the highest stock share whose largest fall stayed within 25%:\n Stock share Largest fall On $300,000 Growth a year, 2011 to 2025 \n 20% \u221218.74% $56,220 3.97% \n 40% \u221220.32% $60,960 5.54% \n 60% \u221222.31% $66,930 7.06% \n 80% \u221228.15% $84,450 8.51% \n 95% \u221232.74% $98,220 9.56% \n 60% fits; 80% doesn't. Alex writes: \" 60% stocks. Expect falls of about $67,000 , or worse: history isn't a ceiling.\"\n Rule 4. Upkeep. \"Rebalance to 60/40 when stocks drift above 65% or below 55%, checked each quarter. Keep the blended fee under 0.10%.\" A 60% VTI, 40% BND mix costs 0.03% a year, $3 on $10,000, per ETFIQ's builder on Nov 10, 2026 .\n Rule 5. Review. \"Once a year, and after a life change. A market fall is not a reason to change Rule 3.\"\n Five lines, each with a number to check.\n The common mistake\n \"I'll set my limit from the worst calendar year.\" Calendar years hide falls that span two years. The 60% benchmark's worst year lost 15.83% ( 2022 ), but its fall from the Nov 8, 2021 high to the Oct 14, 2022 low was 22.31% .\n Set a 17% limit from calendar years and the 80% mix looks fine (worst year \u221216.89% ), yet its largest fall was 28.15% , in five weeks of 2020 . Use the fall from a high.\n Check your understanding\n Pick an answer to see why. Two of three right passes the lesson.\n 1. Why write an IPS before markets fall? A So the rules match the latest news B Because it improves returns C So decisions made calmly guide you when you're worried D Because a broker requires it Answer: C. So decisions made calmly guide you when you're worried. it carries calm choices into a hard day. Not B: an IPS doesn't change returns; it helps you stick to a plan. 2. Sam's loss limit is 21%. Using the table, which is the highest stock share whose largest fall stayed within it? A 20% B 40% C 60% D 80% Answer: B. 40%. 40% fell 20.32% , inside 21%; 60% fell 22.31% . Not C: 22.31% is over the limit. 3. Alex's 60/40 mix is down 18% from its high. What does the IPS say to do? A Keep 60% stocks, rebalancing only if stocks drifted outside 55% to 65% B Move to 20% stocks C Sell everything until it recovers D Rewrite the rules now Answer: A. Keep 60% stocks, rebalancing only if stocks drifted outside 55% to 65%. an 18% fall of the mix is inside Alex's 25% limit, and Rule 5 says a fall is not a reason to change. Not D: changing rules mid-fall is what the IPS exists to stop. \n Takeaways\n Write your rules on a calm day: purpose, loss limit, mix, upkeep, review. \n Set the loss limit from the largest fall from a high, not the worst calendar year. \n Pick the stock share on ETFIQ's benchmarks, then build it in the ETF Models builder. \n Do it on ETFIQ\n Build the mix your rules call for \n Where to next\n Previous lesson: Evaluating a fund: fee, benchmark and promise Planning Deep Dive: all lessons ETFIQ Academy How ETFIQ computes these numbers \n Cite this page. ETFIQ, Write your own investment rules, data as of Nov 10, 2026. https://etfiq.com/academy/planning-deep-dive/investment-policy-statement/ Free to use with attribution for data ETFIQ computes; issuer data stays under its owner's terms. The underlying files are at Open data .\n Other forms Plain ETFIQ, Write your own investment rules, data as of Nov 10, 2026. https://etfiq.com/academy/planning-deep-dive/investment-policy-statement/ APA ETFIQ. (Nov 10, 2026). Write your own investment rules. Retrieved from https://etfiq.com/academy/planning-deep-dive/investment-policy-statement/ Markdown [Write your own investment rules (ETFIQ, Nov 10, 2026)](https://etfiq.com/academy/planning-deep-dive/investment-policy-statement/)","source":"ETFIQ, independent ETF data. Recomputed nightly from public filings and prices.","publisher":{"@id":"https://etfiq.com/#org","name":"ETFIQ","url":"https://etfiq.com"},"license":"https://etfiq.com/license/","license_text":"Data ETFIQ computes is free to use with attribution: ETFIQ (etfiq.com). Issuer data stays under its owner's terms.","citation":"ETFIQ, Write your own investment rules, data as of Nov 10, 2026. https://etfiq.com/academy/planning-deep-dive/investment-policy-statement/"}