Step 1) When you first open the IPS file with MS Word, you will get a screen that asks if you want to open the document Read Only or not. Click "No."

Step 2) Change the footer to reflect your company name. To do this, go to the View menu and select Header and Footer. Then just change the footer text to be whatever you want. This is under the Insert tab in Word 2007.

The footer is a good place to put Broker Dealer compliance approval numbers.

Now read all of the text completely.

The file Miscellaneous IPS Text.doc is just a freebie/add-on for you to use as you see fit. There's no directions about doing anything with it. This is the point where you'd read that, and use any of the template text in making your master IPS.

Make all (non-client specific) changes you want that you'll be using all the time.

For example, if you don't like the asset classes used, now is the time to change them to what you want so you won't have to change them every time you make an IPS for a real client.

Change the company references to reflect you and your firm.

Format to print right on your printer.

This changes our template to your template.

If you want to change the color of the top section, select just that section. Then go to Format, Borders and Shading. Choose Shading, and then make whatever changes you want to.

Step 3) Under the File menu, click Save As....

Then save the file using a different name to preserve the original file. Call it whatever is easiest for you to remember what it is.

It's also important to save the file somewhere on your hard drive so you'll remember where it is the next time you look for it. Tips about are here.

It's okay if you just clicked save and overwrote the original file (you clicked No to the Read Only question, so that allowed you to save your work as you were making your custom template). The original file can still be found as an attachment in the delivery e-mail. If so, then you may want to back it up in a safe place so you can refer to it if needed later.

Step 4) When you want to work on a real client case, open the document again, this time click "Yes" when the Read Only screen comes up.

This is so you won't be able to overwrite your template by accident with changes you don't want on your blank template. It will make you save the template using a different file name when you exit, close, or save.

To turn Read Only off, go to Save As... then Tools, then General Options, then uncheck it. Now you run the risk of ruining your template with client data.

Step 5) Making an Investment Policy Statement for a client.

Break out all of the Financial Planning Fact Finders, interview notes, and the Investment Fact Finder.

Edit all of the text in red to reflect the client's situation. The text in red is normally all that changes when doing this for investment management clients.

You're free to do anything you want, this is just a template for you to build your own custom version around.

You basically want to write a few sentences describing the client's situation, goals, concerns, important things they told you they want you to do for them, etc. This changes with every client, so there is no way to make this totally template. This section shows the client that you were listening during the discovery process!

Some examples of what you'd want want to write is on this Sample Financial Plan Interview Notes document.

Directions on how to use the Investment Fact Finder to gauge risk tolerance are on the bottom of this page.

Step 6) Next, change all of the red text back to black by selecting everything (*A or pressing Control and the letter A on your keyboard at the same time), and then right click on the selected text.

Choose Font, and then change the font color from red to black (Automatic).

Step 7) Save the file using a different file name for each client.

If you just click save after you make the changes, then you wiped out the old template, which is why Word won't let you just click save here. This is the purpose of the Read Only question.

Use a name, and better yet a whole new folder (directory) that reflects that client.

For example, make a folder called "Clients." Then make a subfolder called "Smith." Then save the new IPS under the Smith folder using the Save As... (under the File menu) command to rename it "Smith's Investment Policy Statement.doc" or whatever you want to.

It's important to use a file structure like this (making a unique folder for every client) so you can easily find things later. Tips for saving financial planning computer work for clients.

Step 8) Print a copy of the final version you gave to the client, and put it in their paper folder for compliance/record keeping purposes. Write the date it was given to them in pen somewhere. This is the step that's going to save you from compliance if the client goes nutty on you in the future. Don't forget to do the same paper filing thing with all fact finders too.

Step 9) The next time you use your template for another client, open the template version you edited and saved (not the Smith's version). Only open the Smith's again when updating the Smith's case.

At this point, you're probably wondering what the story is on the text that reads, "Your answers to our questionnaire scored 100 out of a possible 192 points (a score of 192 would indicate maximum tolerance for investment risk)."

This was determined by the Investment Fact Finder, which you can read about by clicking the link.

If you don't have a way of determining a client's Investment Risk Tolerance Category, then you can either just delete this text (and hope you never get into suitability trouble!). Or if you're using your own Investment Fact Finder, that calculates Investment Risk Tolerance, then just change this text that explains this scoring system to reflect that.

That's about it - you just edit the template to fit the client, make any changes the client may want, save a copy, print, and include the original copy in the investment report in their paper file.

Following these steps will keep the original Investment Policy Statement sent to you intact, your custom template intact; make clients happy, save you time and trouble, keep you organized, keep compliance people happy, etc.