I want to explain what an investment policy statement is and why having one saved me significant money during the 2022 market decline.

An IPS is a written document (even a single page) that records: your investment goals, time horizon, asset allocation target, rebalancing rules, and what you will and will not do during a market crash.

Mine says, among other things: 'During any market decline, I will not sell equities. I will continue contributing at my regular rate. I will rebalance annually by purchasing more of the underweight asset class, not by selling.'

When the market was down 20% in mid-2022 and I was watching the news and feeling genuine financial anxiety, I re-read that document. It reminded me that past-me had already thought through this scenario and made the decision. I didn't need to decide again in the heat of the moment.

Write your investment policy in a calm moment. Consult it in a turbulent one. It's the cheapest risk management tool available.