Impact Investing refers to investments “made into companies with the intention to generate a measurable, beneficial, social or environmental impact alongside a financial return.” There are two primary reasons that you might choose Impact Investing. One, you are conscious about how your money impacts the world, and two, you want to use your dollars to support social change.
Performance: Will I have to sacrifice returns?
Not at all. You absolutely can make an impact without sacrificing returns. The MSCI KLD 400 Social Index is comprised of companies with high ESG ratings and avoids companies incompatible with specific values-based criteria. This index, which is the oldest ESG index in the US, has shown that ESG can create added value – by outperforming the S&P 500 for the last 25 years.
Measuring Impact : What impact are the companies making?
One advantage of investing with an impact-focused company, such as Invested Interests, is that we and the funds we work with do the heavy lifting for you. We identify the funds that have screened companies that are both making an impact and are poised for growth, and include them in your portfolios. This marriage of purpose and profit sits at the heart of Impact Investing.
When you’re ready to invest your money, you’ll want to do it the right way.
Managing your own investments may not be right for you, and perhaps you don’t want to work with a big company either. Companies, like Invested Interests, are making it easier for people to invest with their values, and not only that, but our only focus is Impact Investing, which gives us the opportunity to give our clients all the attention they deserve.
Dip your toe into Impact Investing with $100 or $10,000, whatever feels right to you. Low fees and diversified portfolios make it nice and easy to dive in and make a difference.
Do you want to start the New Year with aligning your investments with your values?! Reach out to us to get started!!
And finally, a happy and safe Holiday to everyone!!
There’s a fundamental issue with investing in America: Your money might support companies that harm people and the planet, and you probably don’t even realize it.
When we buy products, say for example a smartphone — we’re essentially giving that company a ‘thumbs up’ in approval.
We’re saying, ‘Hey, I like what you’re doing, and here’s more money to keep doing it…’
Well, the same can be true for investing.
When we buy stocks, we’re saying that we approve of that company’s products and policies.
What if I told you the majority of retirement accounts and index funds invest in big oil, coal mining, and tobacco… and the list goes on and on.
Would you give these industries a ‘thumbs up?’
If we look at the state of the world, we can see we’re not always funding what’s best for the planet.
So let’s look at some crazy numbers:
In 2018, over 480,000 people died from tobacco.
We’re actively pumping 96,000 oil and gas wells on public lands for fossil fuels that create 2/3rds of our carbon emissions.
And we dump 1.5 million pounds of trash into our oceans every hour.
So, if we care about climate change, we can stop funding fossil fuels.
And if we want to prevent lung cancer, let’s stop investing in tobacco.
Look, it’s simple. If we want to see change in the world, we don’t have to wait every four years to vote.
We can vote every day by choosing what products we buy, and investing in the things that we care about. It’s called impact investing.
With impact investing, your money supports companies that solve global challenges, instead of causing them.
And if you’re wondering — Yes. Investing with impact also means good business.
Studies show that stocks of companies with high environmental and social impact have actually outperformed the market for 25 years.
So, if we don’t have to compromise our values to build our wealth, then what are we doing?
What if, right now, you could invest your dollars in only companies that aligned with your values? We believe you should be able to do that, which is why we started Invested Interests. You have more control than you think. It’s time to start pairing your morals with your investments.
But for this to happen, we need a paradigm shift. The financial industry needs to provide radical transparency into the investment options they offer. It’s the only way investors can decide what’s best for their future, society at large, and the planet.
The largest and most popular types of investments in the US right now are mutual funds and ETFs–essentially baskets of securities that typically tout strategy, not individual holdings. So it’s not surprising that people who would never support big oil, tobacco, or weapons manufacturing find themselves invested in these industries. This is the moment to turn our good intentions into action. If you do not want to live in a polluted world, then do not invest in companies that pollute. Even if just one of the holdings in your ETF or mutual fund doesn’t align with your values, you’ve got a moral dilemma.
My question to you: If you really knew where your money was going and the impact it was having, would you make more intentional investing decisions?
For us, transparency and accountability are necessary for building an investment option that drives performance along with purpose. The companies in the mutual funds we work with have to undergo a careful screening process.
You can learn more about the social responsible funds we work with, our personalized portfolios HERE. You can also learn more about the companies in the funds we work with in their respectives websites. Let us help you achieve your investment goals while #InvestingInWhatMatters to you.
These days, people leave jobs and move on to new ones all the time. Chances are, you’ve made at least a few jumps yourself. You’re probably quite familiar with the process of getting your new company email, joining their health insurance plan and deciding which employer-sponsored retirement program to contribute to.
But what happened to the 401k you started at your last company?
Don’t worry, it’s still there, doing its thing. But where your hard-earned (and employer-matched) money is invested might not be to your liking.
Finding your old retirement accounts can be tricky.
If you don’t know where your old 401k account is, you’re going to have to do some digging. Usually, you will receive a statement at least quarterly, and this will typically have login information that you can use for your account. You can also check your former company’s website and they may have details about how the employee 401k program works and how to log in to your account. If all else fails, you can also contact the HR department directly.
Once you find your orphaned 401k, it’s not recommended to just leave the money where it is. For starters, some plans charge higher fees for managing the accounts of former employees. In general, the more accounts you have, the more management fees you pay. There’s also the possibility you could forget that you have the account altogether and lose the money (literally).
You will be better off keeping your retirement accounts in one place. It’s just easier to keep track that way. Investors have two options when they leave a company. They can roll their assets into an IRA or they can roll their assets into their next employer’s 401k plan. The benefit to moving into an IRA is that you’re likely to have more investment options than what’s available in your next employer’s 401k plan.
An IRA, or Individual Retirement Account, is best understood as a savings account—but one specifically designed for retirement. Mutual funds, stocks and bonds can easily be held in an IRA. Many, actually most, of our clients have retirement accounts. Many of those accounts are IRAs that were once old 401ks.
Invested Interests can help you gather your orphaned 401k accounts into one IRA that supports social impact companies. Check out our Portfolios HERE and will be in touch.
Last week, August 14th, the yield on the 10-year US Treasury note fell to 1.58 percent, a number that was last reached in late 2016. Also last week, the yield on a 30-year bond fell to 2.03 percent, the lowest record ever. When this happened in 2007, the Great Recession followed.
So, why exactly is this happening? Investors are worried about a lot of things right now, including the US-China trade war and the fact that the German economy is not doing well. When investors are worried, they tend to start selling riskier investments, like stocks, and start shifting their money to investments like bonds, since bonds are safer than stocks. This helps them protect their money in case the economy takes a turn. Bond prices go up, and yields down, when people buy bonds all at once. Economists carefully monitor bonds and when yields are declining or there are radical moves in the bond market, they take it as a strong sign that a recession may be around the corner.
But it’s important to note that even as falling bond yields can be a sign of a weakening economy, there are other ways to gauge how the economy is doing, such as the job market and the consumer outlook ratings. Coincidentally, both are doing pretty great right now.
With all this uncertainty, is this a good time to start investing? The answer is YES! The thing is, there’s always going to be worse times and better times to invest, and since NO ONE can predict when those times are going to happen, one of the best techniques is to invest consistently (i.e. investing a certain $/mo automatically) no matter what’s going on in the economy/market, which is also known as dollar-cost averaging. Dollar-cost averaging takes the guesswork out of the process and allows an investor to buy more when prices are low and less when prices are high. In addition, dollar-cost averaging takes emotion out of the process, which can be an investor’s worst enemy, gets rid of guessing, and makes investment a consistent habit. Dollar-cost averaging gives yourself the opportunity to grow your investments at a steady pace over time. And when making consistent investments, it also makes sense to place those funds into a well-diversified portfolio. Like the saying “don’t put all your eggs in one basket,” diversification can protect you from big declines when the market does take a big turn by being invested at all times in assets that react differently in different markets (strong markets, weak markets, inflationary markets, deflationary markets, etc.).
Here at Invested Interests, we help you create a diversified portfolio with mutual funds that only contain companies that align with your values. That way you’re not only investing in your future, and keeping risk at a minimum if a recession happens, but you’re also aligning your investments with the socials issues you most care about.
Want to learn more about how to align your investments with your values and becoming an Impact Investor with us? Click HERE and will be in touch.