Do you give money to charities while simultaneously investing in companies that create the necessity for that charity? In fact, would you buy products from those companies or would you seek to avoid them? If the answer is yes to both of these, that is one of your life values that should be incorporated into your financial planning. We call that financial life planning that incorporates values-based investing.
- What matters to you about money?
- Are your investments and plans aligned with your core beliefs?
- Do you know what your money is funding?
Your goals serve are what you want to attain. Your values should serve the path you want to take. Is your plan aligned with your more and ethic values? At Envision we want to encourage you to incorporate your values into your financial planning.
Environmental, Social and Corporate Governance (ESG) investing
Are you concerned about what kinds of companies make up your investment portfolio? Do you wish you could find a way to invest only in companies whose business practices are in line with your beliefs and values?
Socially responsible investing, which is also known as sustainable and responsible investing, broadly refers to any investment strategy that seeks to consider both financial return and social good. The three main advocacy issues within SRI are environmental, social, and corporate governance. Sustainability investing falls within the environmental category; ethical investing falls within the social category. According to the Forum for Sustainable and Responsible Investment (formerly the Social Investment Forum Foundation), SRI is implemented mainly through investment analysis, portfolio construction, shareholder advocacy, and community investing.
Values based investing considers your moral compass
A few of the social issues that some investors find objectionable include:
We stand not to judge but to encourage you to have your values reflected in your plan. Are you pro-sustainability, anti-abortion and anti-tobacco? Maybe tobacco doesn’t bother you but pornography does. Do you have Christian, Muslim or Jewish religious convictions?
If you’re investing in publicly traded companies or investment products that do without properly screening them, you may be doing all of that and more! We can help educate you on where you stand and what your options are.
If you invest in a 401(k) and 403(b) you can only invest in what was chosen for you. Few 401(k) plan investment committees select their providers based on whether or not they will accommodate values based financial planning and investing. Many advisors assume that your only concern is making money for retirement and don’t care who might get harmed along the way.
Are you working with an independent advisor whose investment platform does not limit your choices? If you are saving both inside and outside your workplace plan, it may be possible to work around this issue. Leveraging our independence and our expertise in values based financial planning we can educate you on your options.