Just like typical investment options, impact investing can be done in multiple ways. You can walk into your local investment office, find an advisor online, or consider a robo-investment platform or app. With each, comes a spectrum of services, products, and fees.
Your decision to invest your money is more than a financial one, it’s very personal. At Invested Interests, our goal is to provide you an overview of advisor options so you feel comfortable making a decision on where you invest your money.
In a way, the “old-school” approach to investing. You’ve seen this in the movies. Rows of tables, computer screens, lots of phones. Brokers pacing back and forth while telling their clients about the next hot stock tip. These brokers were paid when investors bought or sold security. They made a commission and the only reason you’d keep working with a broker is if their last stock tip made you money. But remember, they spent their time on the phone selling, not researching. The stock tip was usually just the trendy trade that the other brokers were talking about that day. This option really isn’t around anymore, at least not that we’ve seen.
Traditional Investment Advisor/Bank/Financial Institution
We’ve grouped quite a few professionals together here. The reason? They offer a similar service and charge a similar fee. When you see ads (and maybe you’ve been their client) of your local investment advisor, Charles Schwab, Edward Jones, Wells Fargo, Bank of America, Goldman Sachs, etc you’re working with a traditional investment group.
They provide investment advice and charge a fee based on the total amount of assets invested. Some advisors will continue working closely with their investors, some do not. But with an advisor, the idea is that you are paying for an ongoing professional relationship/resource that will help you monitor and make changes to your portfolio. Advisors charge higher fees because they typically have large overhead expenses (offices, staff, research, travel).
Fee-Only Investment Advisor
What makes fee-only advisors different from traditional advisors is that they charge a one-time upfront fee for a plan or recommendation. They do not charge an ongoing fee based on the total amount of assets. However, once the plan is in place, it is up to the investor to monitor and make changes. Typically the fees are lower, but the ongoing service and relationship are non-existent.
This is the “new thing.” Websites that use software to generate investment advice. The fees charged for these services are typically lower. And the recommendations offered by Robo advisors, the reputable ones, are generally good. A big reason for this is that for many people, in typical situations, good investment advice is also generic investment advice. A one-size-fits-all approach works for many people.
However, there is very little human interaction and no opportunity to develop a relationship with a professional. There is also very little ability to help investors with unique situations or requirements. If you have questions that fall outside of the software, you are left to read FAQs or perform your own Google searches.
Why Invested Interests
We are a focused investment advisor-firm that specializes ONLY in impact investing. We do one thing and we do it well. Our four established portfolios are created based on long-term potential, influential social issues, and with our client’s financial futures in mind. Though we have established portfolios, we work on your behalf for ANY social issue you maybe passionate about, investing your money where it will be most impactful.
Unlike many online platforms, we build a long-term relationship with our investors. We routinely check-in for an update, and as your investments grow, your interests and advocacy naturally shifts, and your investment and outcome needs changes, we provide advice given your current situation, place in life, and goals.
Finally, because of today’s communication technology, we are able to offer our high touch service at a competitive fee. Whether you are just starting out with minimal investment, looking to roll-over a lifetime of 401k plans into a social investment fund, or have another investment strategy or goal, you’ll find our fees lower than a typical investment firm.