Creating an Investment Policy Statement for Emily

Consider a scenario where you are a financial advisor tasked with creating an Investment Policy Statement (IPS) for a client named Emily, a 50-year-old business owner. Emily has expressed her goal of planning for her retirement, which she intends to start at age 65. She currently has a portfolio worth $750,000, primarily invested in U.S. equities, and is seeking to diversify her investments to include fixed income and alternative assets. She has a moderate risk tolerance and is particularly focused on generating income while still achieving capital appreciation. In preparing the IPS, address the key components that should be included to align with Emily's objectives and preferences.