Tie yourself to the mast

The most powerful tool in behavioural finance isn't willpower — it's pre-commitment: deciding, while you're calm and rational, what you'll do when you're not. Your Investment Policy Statement is that decision, written down. Set your objectives, your honest risk tolerance, your target mix and your rules here — then keep the statement and let it govern, especially when markets tempt you to act.

"Commit to the Lord whatever you do, and he will establish your plans." Proverbs 16:3

1Purpose & objectives

Your name (for the statement)

This portfolio is for…

Time horizon

years

Target value (optional)

2Risk tolerance — the honest answer

Largest fall I will hold through without selling35%

I'm willing to wait for recovery up to

years

Be honest — not what you think you should say. This is the number that stops you panic-selling.

3Target asset allocation

Illustrative starting points only — not recommendations. Set your own figures.

Equities

Bonds

Property

Cash

Other

4Rules — automation & rebalancing

Automated monthly contribution

Rebalance when drift exceeds

Review this statement every

5Pre-commitment — the mast

When markets fall sharply, I will:

Before ANY discretionary buy or sell, I will: Wait 48 hours before acting Check the decision against this statement Confirm it isn't driven by a recent headline or emotion

This tool helps you write down your own decisions — it is educational and is not financial advice or a personal recommendation. It does not recommend any objective, risk level, asset allocation or strategy; every figure and choice is yours. The "Adventurous / Balanced / Cautious" presets are illustrative examples of how portfolios are commonly described, not recommendations or suitable allocations for you. An Investment Policy Statement is a personal planning document, not a regulated product. For advice on whether a particular strategy or investment is suitable for your circumstances, speak to an FCA-regulated financial adviser. Christian Finance Academy · Module 9: Behavioural Finance · Topic 3.