Investment Policy Statement Components

Lisa is a financial advisor creating an Investment Policy Statement (IPS) for her new client, Mr. Thompson, a 60-year-old retiree. Mr. Thompson has a comfortable nest egg of $2 million and wants to ensure sustainable withdrawals during his retirement while also leaving a financial legacy for his children. He has a moderate risk tolerance and expects to generate a return that outpaces inflation. As Lisa drafts the IPS, she includes sections on asset allocation, investment objectives, and risk management strategies.

Which of the following components should be explicitly included in Mr. Thompson’s IPS to align with his goals of sustainable withdrawals and providing a legacy?