Investment Policy Statement for a Conservative Client

Alexandra is a 50-year-old successful entrepreneur with a current net worth of $5 million. She plans to retire in 10 years and wants to ensure her portfolio supports her lifestyle during retirement while also leaving a legacy for her children. She has expressed a conservative risk tolerance, preferring stable income-generating investments over high-volatility stocks.

As her financial advisor, you need to develop an Investment Policy Statement (IPS) that aligns with her financial goals, risk tolerance, time horizon, and the specific needs of her family. In your response, outline the key components of the IPS you would create for Alexandra, explaining how each component addresses her unique situation and objectives.