Creating an IPS for a Conservative Retiree

As a financial advisor, you have been tasked with creating a detailed Investment Policy Statement (IPS) for your client, Mr. Robert Jensen. Mr. Jensen is a 60-year-old retiree with a net worth of $8 million. He has a conservative risk tolerance and aims to preserve his wealth while generating a steady income to support his lifestyle. He has specific financial goals, which include funding his grandchildren’s education, making annual charitable contributions of $50,000, and ensuring that he can afford luxury travel experiences each year, totaling $30,000. In light of current market conditions and Mr. Jensen's needs, you are required to articulate a comprehensive IPS that outlines the investment strategy, asset allocation, liquidity requirements, risk management practices, and monitoring procedures. Include any criteria you would use to evaluate the success of the investment portfolio and how you would adapt the IPS in response to changing financial circumstances.