You know there are stocks, bonds, cash, CDs, real estate, commodities, hedge funds… on and on.
But have you given a lot of thought to the impact of your investments?
It may not be for everyone, but you might give some thought to the effects that your investments have in the world.
- Climate: Consider the effect of what you own on climate change, for instance. Are you investing in the most polluting industries? Or are you putting your hard-earned money behind companies that are a force for good in terms of climate? One example: Green Century Funds has been allowing people to invest with a view toward a pro-environment stance for 25 years.
- Fair Treatment of Renters and Homeowners: What about the kind of real estate you are investing in? Are you helping people to stay in your homes or are you investing in companies that tend to evict tenants or evict homeowners more quickly than others? A few examples: Goodegg Investments and American Homeowner Preservation aim to allow you to invest in real estate in a socially-responsible manner. Whitney Sewell’s Life Bridge Capital pledges to give “50% of their profits” to support those who adopt children in need.
- Diversity, Equity, and Inclusion: Are you investing in firms that are led by diverse teams? Or are you only investing in companies with white founders and executives? Have you considered the impact of your investments on the diversity of the people working in the financial industry? Consider the experienced team at Ariel Investments, which is devoted to leadership in diversity, equity, and inclusion in the investments field.
- Faith: How about your religion? Do you want to invest in a way that allows you to uphold your faith? Thrivent Funds is one such firm; they’ve been at it for 100 years. But that depends of course upon your faith tradition.
You may have answered “no” to all of these questions. Maybe you haven’t given any thought to it at all. That would not be unusual.
This blog is devoted to pointing out some of the options that you have if you want your investments to work as hard as you do to change the world! And in each of these categories, there are great choices that allow you to do well while doing good. You do have choices for where you invest your savings–and those choices themselves might help improve the world.