Investment Policy Statement

Prepared on:

[date]

Prepared for: Client Name [address] [address] [phone number] I. Investment Policy Statement:

This Investment Policy Statement [IPS] is intended to establish an understanding between ______[“Client”], ______[“Advisor”] and Northeast Planning Associates, Inc. [NPA] as to the investment objectives and policies applicable to the Client’s investment portfolio. This IPS does not modify or amend any contract between LPL Financial, other Investment Advisor, Advisor and Client, which is set forth in the documents signed and received by Client in connection with opening such contract.

II. Purpose:

An investment policy statement [IPS] outlines and prescribes prudent and acceptable investment objectives and sets out the investment management procedures and long term goals for the investor.

This IPS will:

a. Set forth the Client’s current situation.

b. Set forth the Client’s overall objectives, risk tolerance, time horizon, and investment objectives for all of the Client’s investment assets.

c. Provide investment guidelines to be followed upon implementation of this IPS.

d. Provide Advisor guidelines for investment management, monitoring and reviewing the Client’s investment assets.

III. Client’s Current Situation:

Client Name(s): ______Client Age(s): ______Tax Filing Status: ______State of Domicile: _____ Taxable Tax Qualified Current Investment Assets: ______Current Income Needs from Investments: ______

Click here to enter text. Liquidity Needs (immediate to 3 years): ______Maximum Time Horizon: ______

IV. Statement of Objectives:

a. Overall Objectives:

i. Investment Priorities: [rank in order or priority] _____ Current Income _____ Safety of Principal/Capital Preservation _____ Liquidity _____ Growth _____ Inflation protection

ii. Specific investment needs: [Typical – modify as needed]

1. Retirement income – a need 2. Inheritance for the children – a wish 3. Charitable goals – a want 4. Family destination vacations – a want 5. Children’s wedding(s) – a want 6. Grandchildren’s education – a wish 7. Etc.

b. Risk Tolerance: Understanding the risks of investment and deciding what amount of risk an investor is prepared to accept also is specific to each client, and also can vary significantly. Client recognizes that some risk must be assumed in order to achieve the investment objectives of the Client. At the same time, Client recognizes that higher returns involve volatility, and the Client has acknowledged that declines in the value of

Click here to enter text. an investment portfolio can and most likely will occur. c. Time Horizon: One of the most important considerations for selection of an investment objective and the selection of investments for a portfolio is the time horizon with respect to the Client’s goals and objectives. Typically, it is important to attempt to estimate at least two periods of time: the period of time that an investor anticipates a greater focus on accumulating assets (during which income requirements are expected to be satisfied from other sources), as well as the period of time that an investor anticipates satisfying some portion of income requirements from investments. These periods are specific to each client, and can vary significantly. [Client also recognizes that the investment plan includes a time diversification strategy which segregates assets by different time periods according to distribution needs and client risk tolerance. – Optional and included if Financial Destinations (Buckets) financial plan is used.] In addition, these periods can change based on unforeseen circumstances or changes in financial condition. If such events occur, Client will notify Advisor promptly. d. Investment Objective: Based on discussions between Client and Advisor concerning Client’s financial circumstances, time horizon, and risk tolerance, Client has selected Income with Moderate Growth as the investment objective for Client’s investment portfolio. [Client has also selected Alternative investment strategies which may employ Real Estate, Absolute Return Strategies, Market Neutral Strategies, Managed Futures Strategies and Defensive oriented money managers.]

Growth (and potentially, income in the form of dividends) is expected to be derived from growth-oriented equity securities that appear to have the potential to experience appreciation in value. Income (and, potentially, growth from any appreciation in value) is expected to be derived from fixed income securities that are expected to pay dividends and/or interest. These are broad and not mutually exclusive categories, since income can be achieved from growth securities, and growth can be achieved from income securities.

Although exact percentages are likely to vary over time, the anticipated allocation of the portfolio will be 50%-60% in fixed income securities, with a bias towards higher quality bonds of various maturities, and 35%-45% in income-oriented equity securities, with a bias towards large company stocks with a strong dividend history. Both allocations may be effected through investment in diversified mutual funds that are comprised of such securities.

Click here to enter text. [Alternative Strategies] Alternative investment strategies are to be included in the overall investment portfolio, and though exact percentages are likely to vary over time, the anticipated allocation in the investment portfolio will be 10%-20%.

V. Investment Guidelines:

a. Investment Selection: Based on discussions with Client, the following investments may be purchased in the investment portfolio: [delete those not to be considered or used]

i. Cash and cash equivalents

ii. Debt instruments issued by government agencies

iii. Corporate debt instruments, investment grade or high yield, domestic and foreign

iv. Open and Closed-End publicly traded mutual funds, domestic and foreign

v. Exchange traded funds, domestic and foreign

vi. Individual equity securities

vii. Publicly and non-publicly traded real estate investment trusts

viii. Unit investment trusts

ix. Commodities

x. Managed futures and derivative products

xi. Structured notes

xii. Oil and gas partnerships

xiii. Leasing partnerships Note: In general, concentration in an investment portfolio of a particular security or industry sector can increase the risk that unforeseen event could negatively affect the particular security or industry, which could negatively affect portfolio performance.

Click here to enter text. b. Re-balancing of Allocation: From time to time, market conditions may cause the portfolio’s investments in various asset classes to vary. To remain consistent with the asset allocation guidelines, the asset allocation will be reviewed at least annually. If cash flows are insufficient to bring the portfolio within the targeted ranges, the client shall decide whether to effect transactions to bring the allocation of portfolio assets within the asset allocation guidelines.

c. Benchmarks for Investment Review: Based on discussions between Client and Advisor, Client has agreed that comparing the performance of the account to generally accepted industry “benchmarks” can be a useful exercise. Accordingly, the following benchmarks may be utilized for purposes of account monitoring and review:

 Large Cap Stocks: S&P 500, Russell 1000 Index  Mid Cap Stocks: Russell Midcap Index  Small Cap Stocks: Russell 2000 Index  REITS: Dow Jones Wilshire REIT Index  Global Stocks: MSCI-EAFE Index  US Bonds: Barclay’s Aggregate Bond Index  Global Bonds: Solomon Brothers World Bond Index

VI. Investment Management:

a. Investment managers: Investment managers (including mutual funds, exchange traded funds, money managers, limited partnerships, investment advisors, and separate account managers) shall be chosen using the following criteria:

i. Past performance, considered relative to benchmark indices and other investments with a similar investment objective

ii. Historical volatility and downside risk of each proposed investment

iii. Investment style and discipline

b. Reports: The investment custodian shall provide the Client with monthly or quarterly statements for each account held by Client and subject to this IPS. Such reports shall show values for each asset and all transactions affecting assets within the account, including additions and withdrawals. [Optional: Either the Advisor or one of its partner firms shall provide the Client with a [quarterly] [annual] report, including all holdings in

Click here to enter text. the investment portfolio covered by this IPS.]

c. Monitoring and Review: Advisor will monitor the investments in the account and the overall account performance. Because the benefits of diversification historically have been achieved over the long term, short term market fluctuation will not necessarily result in a recommendation by Advisor to switch the investments or to consider changing the investment objective. Client also will monitor the account, and will receive regular periodic statements of the account, as well as confirmations of every transaction in the account, to assist with such monitoring. Client acknowledges that it is his/her responsibility to review transaction confirmations and periodic account statements upon receipt, and to promptly notify Advisor of any questions or concerns arising from such review. Client will notify Advisor of any changes to financial circumstances, time horizon, or risk tolerance.

VII. Investment Policy Review: The Client and Advisor will meet at least [annually] [every two years] or as needed due to changes in the Client’s objectives, time horizon or risk tolerance to update this IPS.

VIII. Duties and Responsibilities:

a. The Advisor: The Advisor serves as an objective, third party professional to assist the Client in managing the overall investment portfolio. The Advisor is expected to manage the portfolio in a manner consistent with this IPS. The Advisor is an Investment Advisory Representative with NPA, a Registered Investment Advisor, and shall act as the investment advisor and fiduciary to the Client until the Client decides otherwise. Advisor shall be responsible for:

i. Designing and implementing an appropriate asset allocation plan consistent with the investment objectives, time horizon, guidelines and investment management policies as outlined in this IPS.

ii. Recommending an appropriate custodian to safeguard Client’s assets.

iii. Identifying specific investments and/or investment managers.

iv. Monitoring and reviewing all investment managers and service vendors

Click here to enter text. v. Monitoring the performance of all portfolio assets.

vi. Client [grants] [does not grant] Advisor discretionary control for purchase and sales of Client securities.

vii. Advisor will not take title to or custody of any Client assets. b. Custodian and Service Provider: The custodian(s) and/or service provider(s) are responsible for the following:

i. Custody the Client’s investment assets

ii. Value the holdings

iii. Collect all income and dividends owed to the client

iv. Settle all transactions

v. Provide monthly or quarterly reports that detail transactions, cash flows, securities held and their current value, and change in value since the previous report.

vi. Investment Managers will manage the assets under their supervision and exercise full investment discretion with regards to buying, managing, and selling assets held for the Client. c. Client: Client shall be responsible for the following:

i. Defining the investment objectives and policies of the investment portfolio.

ii. Directing the Advisor to make changes in investment policy and to oversee and to approve or disapprove the Advisor’s recommendation s with regard to policy, guidelines and objectives on a timely basis.

iii. Providing the Advisor with all relevant information on Investor’s financial conditions, risk tolerance and time horizon and notifying the Advisor promptly of any changes to this information.

Click here to enter text. iv. Reading and understanding the information provided by the Advisor and contained in the prospectus/ADV for each investment in the portfolio.

v. Being responsible for exercising all rights, including voting rights, as are acquired through the purchase of securities. The Advisor does not cast proxy votes for Client.

IX. Important Disclosures and Reminders:

a. The projections or other information illustrated in any documents provided to the Client regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results.

b. Different types of investment involved varying degrees of risk, and past performance may not be indicative of future results.

c. It should not be assumed that future performance of any specific investment or investment strategy will be profitable.

d. Historical performance results for investment indices and/or categories have been provided for general comparison purposes only, and generally do not reflect the deduction of transaction and/or custodial charges, the deduction of an investment management free, nor the impact of taxes. It should not be assumed that the performance of each of the portfolio holdings will correspond directly to their benchmark indices.

e. Other investments not considered in the recommendations resulting from this IPS may have characteristics similar or superior to those being analyzed and/or recommended.

f. The Client should contact the Advisor if there are any changes in the Client’s financial situation or investment objectives or if the Client wishes to add to or modify any reasonable restrictions to the Advisor’s investment management services.

ACKNOWLEDGEMENT:

By [his] [her] [their] signature below, Client acknowledges receipt of this IPS and discussion of its contents:

Click here to enter text. Client: ______Date: ______

Client: ______Date: ______

Northeast Planning Associates, Inc.

Advisor: ______Date: ______

Click here to enter text.