The Stacking Benjamins Show

Episode: Stop Making Simple Investing Mistakes With an Investment Policy Statement (SB1738)

Date: September 22, 2025

Episode Overview

In this episode, Joe Saul-Sehy, OG, and Doug dive deep into the concept of the Investment Policy Statement (IPS)—a tool used by investment pros and everyday people alike to avoid emotional, haphazard investing, especially during turbulent markets. With their trademark banter, the crew demystifies the IPS, explaining why it's not just for the ultra-wealthy and outlining practical steps for listeners to craft their own. The show also features a Q&A about how stock trading works behind the scenes, a TikTok/Instagram cautionary tale, and some signature Stacking Benjamins humor.

Key Discussion Points & Insights

1. Why You Need an Investment Policy Statement (IPS)

• Market Downturns and Emotional Decisions

  • Joe recalls how audience questions spike during every market dip, people panicking and unsure of their next step.
  • OG stresses that most investment mistakes happen when expectations don’t match reality. An IPS serves as a “pre-commitment” to your rational investing intentions, helping you act calmly when things go sideways.

  "You only lose money when you sell. If you have an investment policy that's focused on your long-term financial goals, then temporary declines won't force you to sell."
  — OG [09:31]

  • Joe likens an IPS to a "financial fire drill” that keeps you from making panicked decisions.

2. IPS is Not Just for Billionaires

• Many think the IPS is an institutional tool, but Joe and OG argue it's even more crucial for people “juggling 17 things in real life.” It brings order when life and headlines want to disrupt your plans.

• Having a written IPS helps you avoid the “random Tuesday” portfolio shuffle driven by the latest news scare.

  "The reason institutions use an investment policy statement…is because you’re focused on so many different things."
  — Joe [14:52]

3. Core Components of an IPS: Step-By-Step Breakdown

• Purpose & Objective

  • Define specific goals (retire at 60 with $X, fund kid’s college by 2035, etc.)

  • Doug warns against vagueness: “To retire comfortably” is meaningless when the rubber meets the road.

    "When you're that broad with your goal statements, there isn't a lot of value, because six months later, when the stuff hits the fan, it's hard to use that as guidance."
    — Doug [19:33]

• Time Horizon & Liquidity Needs

  • Know when you’ll need the money to guide allocation.

  • Plan for unexpected “liquidity events”—emergencies, early withdrawals—and have cash or short-term reserves available.

    "As long as you are cognizant of the different kind of time frames... there's only so much money every year and they save a considerable amount of it."
    — OG [21:31]

• Risk Tolerance & Constraints

  • Be mindful of how much risk and what types of risk (including tax considerations) you're able to take.

• Benchmarks and Return Targets

  • Your benchmark is not the S&P 500—it’s what you need to meet your goals.

  • Joe walks through reverse-engineering from the goal to regular checkpoints.

    "Your benchmark is not the S&P 500. Your benchmark is: I need to save X and get Y return to reach my goal."
    — Joe [24:24]

• Governance & Frequency of Review

  • Decide how and when you’ll review your investments (annually, semi-annually, or when market drops trigger rebalances).

  • Ensure all relevant parties (spouse/partner) are in the loop and know what’s what; don’t leave one person in the dark.

    "The stress that other person has thinking about it pales in comparison to the stress they'll have if they have no clue what's going on."
    — OG [30:43]

• Flexibility

  • Update your IPS when goals or life circumstances change, but only for good reason; avoid knee-jerk reactions.

    "Feel free to change it... just have a damn good reason."
    — Doug [35:49]

4. Common Pitfalls to Avoid

• Being Too Vague: Goals must be specific for your plan to be sticky.
• Being Too Rigid: Life changes, so should your IPS.
• Ignoring Liquidity Risks: Plan for emergencies or changed timeframes.
• Benchmarking Against Wrong Goals: S&P 500 is irrelevant for short-term goals.
• Poor Communication: Make sure everyone involved understands the plan.

5. Practical Tips

• Keep your IPS simple and written down.
• Build in regular reviews (annually is usually enough).
• Clearly define roles in your household.
• Use your IPS to make decisions on calm days, not in market storms.

Memorable Moments & Notable Quotes

• OG’s (almost cheeky) IPS:

  “Don’t do dumb with your money.” [05:10]

• Joe on benchmarking:

  “My favorite way to benchmark was to begin with the goal amount and work back every six months.” [28:48]

• Doug on market psychology:

  "We're telling everybody not to do that and actually just push down on that red hot burner." [16:55]

• On working together in a relationship:

  "There's no guarantee that both of you wake up tomorrow... If one person is the driver, it's so stressful for the other."
  — OG [30:43]

Important Timestamps

• [09:25] — Why you want an IPS, especially during downturns
• [14:40] — IPS is not just for billionaires or pros
• [19:33] — Specificity in setting objectives—Doug’s strategic planning lesson
• [21:30] — Liquidity, timeframes, and risk buckets
• [24:24] — How to plan for black-swan events, manage constraints, taxes, and use meaningful benchmarks
• [28:48] — Reverse-engineering checkpoints from goals
• [30:43] — Including all household members in governance
• [33:36] — How often should you review and rebalance? (studies say: once a year is enough)
• [35:28] — Common pitfalls and best practices

Listener Q&A: How Do Stock Trades Actually Work?

[46:11] – [54:18]

• When you sell a stock, it's bought by another person, not the company or a mysterious holding bucket.

• Modern trading is almost entirely automated, handled by “market makers” who can facilitate trades when buyers/sellers mismatch.

• Explains "market order," "limit," and "stop" orders, including real-world risks of poor order types.

  “That doesn't really... it doesn't go on a shelf, it doesn't get deleted... it's just moving from one person to another.”
  — OG [47:53]

• Entertaining analogies: Best Buy returns, Amazon, auctioneering—plus fun call-back to classic Wall Street movies as learning aids.

TikTok Minute: Cautionary Tale

[42:13]

• Viral video where a young woman believes Apple Pay spends "Apple Dollars" instead of real money (“I thought that I had accumulated a bunch of Apple dollars to use for Apple Pay…”).
• OG sharply critiques the “fake news” nature of this content, but the group gets a laugh at how widespread financial misconceptions are online.

Conclusion, Takeaways, and Action Steps

Doug’s wrap-up blends humor and clarity:

1. Draft Your Own IPS:

   • Start today—don’t wait for market drama.
   • Use it to guide your portfolio calmly across all markets.

2. Be Alert to Financial Myths:

   • Don’t believe everything you see on TikTok, especially about “Apple Dollars.”

3. Involve Your Household:

   • Don’t let one person fly solo with the money. Make sure everyone knows what’s going on.

Joe plugs their ready-to-use IPS template at stackingbenjamins.com/ips and invites voicemail feedback and questions.

Signature Stacking Benjamins Fun

• Banter about coffee, biblical “zingers” (all that “Bible hilarity”), and “tweaking” portfolios leavens all the financial talk.
• Listener trivia segment on Joan Jett, playful TikTok ribbing, and Wall Street movie references keep things light.

For More:

• Ready-made IPS template: stackingbenjamins.com/ips
• Voicemail your IPS attempts or questions: stackingbenjamins.com/voicemail

This summary captures the warm, conversational, and humorous tone of the show while distilling practical advice and specifics for listeners and real people ready to up their investing confidence.