Last week, the federal government released the latest (4th) report in the national climate assessment. Much overlooked by the current administration, the report focused on the science of climate change as well as the current and future impacts on the United States.
Current Impacts of Climate Change
Impacts of climate change are already being felt across the country. From the devastating wildfires in California to the overwhelming destruction caused by hurricanes in the 2017 and 2018 seasons, more frequent and extreme weather events have occurred. In addition to the cost of human lives which can never be quantified, the impact on communities, the economy, and infrastructure may take months, if not years, to repair.
Future Impacts of Climate Change
In the immediate years ahead, we can expect these events to worsen and will see their toll not only in communities, but in our current natural and manufactured ecosystems, human health and safety, and in our national and global economy. The following impacts are also highlighted within the report:
- Stress on water supplies and availability in the United States due to rising air and water temperatures, intense droughts, and decreasing surface water quality
- Increased exposure to waterborne and foodborne diseases
- Increased natural disasters, including fires, flooding and eroding shorelines which create vulnerable infrastructure in every U.S. region. This includes access to roads, viability of bridges, and safety of pipelines.
- Increased frequency and severity of asthma and allergies
- Substantial net damage to the U.S. economy, including annual losses in some sectors in the hundreds of billions of dollars.
And these are just the top 5 impacts we took away. The entire report has many, many more national consequences.
Global Prioritization of Climate Change
“Communities, governments, and businesses are working to reduce risks from and costs associated with climate change by taking action to lower greenhouse gas emissions and implement adaptation strategies. While mitigation and adaptation efforts have expanded substantially in the last four years, they do not yet approach the scale considered necessary to avoid substantial damages to the economy, environment, and human health over the coming decades”
Transformations in Law
This is a conversation that needs to happen at a global level. Working in a bipartisan fashion and alongside the broader global community, our lawmakers need to place climate change among top-priorities in their everyday decision making. Through development methods, military planning, and disaster management, each government department can either perpetuate or halt decisions made regarding climate change and its current and future impacts.
Transformations in Energy
Consumer habits are slowly starting to trend toward renewable energy. If enough momentum continues, companies and governments alike can focus on increasing renewable energy products and contributing policy actions to make it accessible on a broader and more affordable scale. By reducing our reliance on coal and other natural resources, we can avoid serious consequences and shortfalls on the horizon.
Transformations in Investments
As a consumer, one of the greatest impacts you can make is in your investment choices. Do you know where your 401k investments are held and who they are funding? Most traditional 401ks do not support ESG (economic, social and governance) rated social investments. Rather, most focus on the very large-scale businesses that are contributing to climate change with non-sustainable business practices.
Our environmental portfolio is made up of companies addressing their long-term environmental impacts, focusing on sustainable business practices, and prioritizing their effect on the surrounding environment – at a local and national level.
At Invested Interests, we believe that a national conversation regarding the truth about climate change needs to be brought to light, across party lines, for the good of our lives and the lives of future generations.
Questions about our climate change or environmental investment portfolios? Ready to get started with no minimum investment? Get started building your portfolio today!
1. What is Socially Responsible or Impact Investing?
By definition, socially responsible investing refers to the practice of utilizing an investment strategy that considers both financial return as well as a socially-conscious effort to promote positive change.
You may have heard of socially responsible investing (SRI) referred to as many different things including sustainable investing, responsible investing, socially conscious, green, or even ethical investing. Another term, impact investing, refers to the devotion of creating a social impact based on investment choices.
2. What can I invest in?
At Invested Interests, we offer four main portfolio options including:
- Peace: promote peace, invest in conflict resolution, and avoid armed conflicts. Think avoiding regions of conflict and gun manufacturers. learn more…
- Equality & Diversity: support gender and racial diversity. Invest in companies that embrace diversity initiatives, have women on corporate boards, and support the #MeToo movement. learn more…
- Environment: go green by investing in environmental and sustainability efforts. Think alternative energy, companies investing in climate change, and avoiding fossil fuels. learn more…
- Human Rights: invest in companies promoting human rights and equality globally. Think Sudan Darfur and avoiding sweatshops. learn more…
3. Why should I choose Impact Investing over standard Investing?
Impact investing allows you to make a conscious investment decision – knowing exactly where your money is and what causes it is supporting. While impact investing still invests in large companies and corporations focused on profit, you get to choose which of those companies are making decisions at a high-level that align with your values.
4. Am I sacrificing performance?
That’s the best part! Research shows that social responsibility funds have done better in the last 20 years than traditional investment funds! Take a look. The MSCI KLD 400 Social Index is the socially responsible screened version of the S&P 500.
5. Your portfolios sound great, but I have other interests I’d like to invest in. What other social issues are available?
Invested Interests has access to investment research on over 18 social issues including environment, abortion, adult entertainment, alcohol, animal testing, BP, corporate governance, defense, gambling, human rights practices, labor relations, minority diversity, involvement in nuclear power, discriminatory sexual orientation practices, business ties to the Sudan, ties to terrorism, tobacco, and weapons. If you have something specific in mind, get in touch. We’re always open to building new portfolios in the future!
6. What services do you offer?
We provide investment advice and planning to clients like you! All of our investment services incorporate social issues. Our services range from a selection of mutual funds to planning for retirement and college expenses. Our advisors have years of experience and are qualified and licensed to offer financial advice.
7. Can I invest my retirement account or do a rollover?
Yes! All investment accounts can be transferred or opened at Invested Interests including IRA, Roth IRA, SEP, 401(k), 403(b), UTMA, individual, unqualified, and more!
8. What fees do I pay?
Invested Interests is an investment advisor. We do not charge transaction fees or commissions. Our fee is simply a % based on the size of the account. Traditionally, advisor fees are offered on large accounts. However, Invested Interests does not have a minimum investment. Please contact us for more information about our fees.
9. Is Invested Interests a mutual fund?
No, each of our portfolios are separate accounts made up of mutual funds selected by our portfolio investment team. When you invest in a portfolio, you are investing in socially responsible mutual funds made up of companies that fit with the impact standards for each portfolio.
10. Who can open an account with Invested Interests?
Anyone looking to make an impact through their investment decisions! As long as you are 18 years of age and a resident of the United States, you are able to open a flexible investment or retirement account.
Questions about individual mutual funds or our portfolio options? Or want a customized portfolio? Request a FREE impact investment consultation, and we’ll be in touch!
Mutual funds are a collection of various stocks, bonds, and other investment securities. When you invest in a mutual fund, you own a certain share of the fund. While fund shares are constantly being traded, the piece that you own is valued as a piece of the total fund. In other words, the total value of all of the stocks, bonds, and securities in each fund is divided by the number of shares owned.
Why mutual funds?
Mutual funds inherently have less risk than investing in individual stocks and bonds because they are a diversified investment. With the tumultuous retail world we live in right now, it’s important to be diversified in your investments. Should one of the companies you are invested in go bankrupt, you have many more securities (stocks, bonds, etc) in your mutual funds to protect your overall investment.
If you don’t want to research each individual company before investing (let’s be honest…most of us planning for retirement don’t do this full time), mutual funds are a great option! At Invested Interests, we utilize actively-managed, socially responsible funds which provide many distinct advantages to the average investor.
Advantages of Socially-Responsible Mutual Funds
- Help build a diversified portfolio
- Can be built based on your own individual retirement goals and timeline
- Are actively managed based on current market standings
- Integrate Environmental, Social, and Governance (ESG) factors into investments
- Allow for minimum investments that can grow and be added to over time
- Require less individual research
- Address and lessen the inherent risks of stock investing
ESG Mutual Fund & Portfolio Options
We hand-select from 400+ available ESG mutual funds based on the companies represented, impact opportunities, and, of course, past and future performance measurements. We utilize mutual funds from a variety of world and national funds including Trillium, PAX, Domini, and Calvert.
Each of our investment portfolios holds many different types of mutual funds focused specifically on the investment cause you’d like to pursue including World Peace, Environment, Equality & Diversity, and Human Rights. You can choose to invest in one or many of these portfolio options. In addition, we provide custom portfolios and can build in each of the various funds that apply to your retirement goals, timeline, risk tolerance, and socially responsible investment platforms.
Questions about individual mutual funds or our portfolio options? Or want a customized portfolio? Request a FREE impact investment consultation, and we’ll be in touch!
In the early stages of your career, you may have had the benefit of an employer-sponsored 401(k). If you were really lucky, you may have even had contributions matched by an employer or two. And while you were focused on climbing that ladder, your 401(k) sat idly in the background beginning the foundation of your future retirement accounts.
Now your focus is on planning for retirement. It’s time to tune into those accounts and see how they’re faring. You may be surprised to learn what you’re paying to hold on to them…and what your money is actually being invested into…
How to Rollover your 401(k) into an Impact Investing Account
Typically, rolling over your 401(k) means moving your retirement assets into a traditional individual retirement account, or IRA. You can also roll over into a Roth IRA, but doing so may result in a large tax bill due to the fact that your original contributions were likely made on a tax-deferred basis and are subject to tax upon withdrawal.
When rolling over into a new impact investing account, there are a variety of social responsibility portfolios we offer to accommodate your social investing interests:
Made up of a variety of known environmentally conscious companies, our environmental portfolio incorporates those willing to rethink the status quo, addressing their long-term environmental impacts, and choosing to operate on an eco-first and eco-friendly basis.
Our human rights portfolio is comprised of those companies that have corporate policies and practices focusing on promoting a fair and equitable workplace. Many of these companies have won accolades and recognition for confronting issues with employee, customer, supplier, and community interaction.
Our peace portfolio is the one that started it all for Invested Interests. The companies in our peace portfolio play a positive role in furthering peace on our place and limiting conflict. While the methods vary, we invest in companies that have taken positive steps to limit support of governments and regimes promoting violence.
Our diversity and corporate governance portfolio is made up of companies working to create a culture of inclusion, new ideas, and foster strength in their team through inclusive policies. Whether by broadening their board of directors or establishing human resources policies of inclusion and support, these companies are taking the right steps to the fair and ethical treatment of employees. Many of the companies included in our portfolio are leaders in sexual harassment training and provide information, seminars, and resources to their employees.
Reasons to Consider a 401(k) Rollover
- High Fees
There are no fees to roll over a 401(k) into a traditional or Roth IRA. In fact, you’ll likely save money on management fees over the duration of your investments. Left unmanaged, many 401(k)s end up with high management and maintenance fees. Investment opportunities and understanding has changed dramatically since the rise of online trading and robo-advisers. While these two options still have their shortcomings, they did pave the way for more aggressive fee structuring.
- Investments
Most traditional 401(k)s do not support ESG (economic, social and governance) rated social investments. Rather, most focus on the very large-scale businesses that are generally focused on revenue-focused, not socially responsible business practices.
When setting up your 401(k) you likely had a choice of a few mutual funds. However, with an IRA, you have a full-selection of funds to choose from and can create a better long-term strategy based on risk management, ESG ratings, and your retirement goals.
- Consolidation
Former employers go out of business. Their retirement options and advisors change. Whenever you change positions, you always have the option of moving your account into a new employer’s 401(k) or to an IRA. While you can sometimes leave it where it is, for most individuals, rolling over to an IRA is the best choice.
If you are like most Americans and change positions every few years, it may be time to gain control and oversight over all of your retirement accounts. Diversification is powerful. So is knowledge. Especially when it comes to retirement planning.
Considering a 401(k) rollover? Request a FREE impact investment consultation, and we’ll be in touch!
In 2017, global carbon emissions climbed to a record high. Just this month, a report was released by the United Nations urgently warning that in order to prevent further increased global warming, dramatic steps were going to need to be taken. They estimated that human activities have caused an increase of 33.8°F of global warming compared to pre-industrial levels. If this continues at the current rate, as 2017 data indicates, it could reach an increase of 34.7°F by as early as 2030!
Potential Impacts of Climate Change
So what does this change in temperature mean, exactly? Well, scientists have high confidence that not only who this create an increase in mean temperature, but hot extremes, a probability of increased drought, decreased precipitation, and an increase in sea level. Further impacts due to these considerations include an increase in wildfires and destruction of homes and habitats, species loss and extinction, and risks to health, livelihood, and food and water sustainability.
That sounds terrifying. What can I do?
To halt climate change at the current rate, it is going to take not only a national movement but a grassroots acceptance and lifestyle changes. We’ve put together a list of things you can do within your daily life to help mitigate climate change on a local level – share, tell your friends, and together we can make being green a popular choice.
- Choose Green Transportation
Fossil fuel use is one of the largest human contributors to global warming. Stop and consider the difference in emissions if every person who owned a car changed over to an electric or hybrid vehicle, ride-shared, or choose energy-efficient public transportation. While this may not be a cost-effective avenue for you just yet, take a look at the affordability of electric transportation. It’s rapidly declining, while vehicle styles are becoming popular choices for urban and suburban professionals.
- Change Your Diet
Don’t get us wrong here. Diet is not only a health choice but a very personal consideration at that. We can certainly appreciate a good Juicy Lucy here in Minnesota. However, land-intensive animal products and processing use a fair share of consumables. Consider a plant-based diet, grow a backyard garden, and eat local to help reduce your eating imprint on the world.
- Renewable Energy
A significant section of the UN report focused on renewable energy use. Their staggering requirement: that renewable energy account for 85% of electricity production by 2050, with gas energy being just 8% and coal at 0%. Solar, wind, and electrical technologies have improved significantly the last decade, but are still vastly underutilized due to the societal, economic and political pressures by large industries. At home, consider solar panels for energy generation and reach out to your local energy co-op for sustainable options.
- Invest in Sustainable Business
On a larger scale, step back and consider your investment choices. Do you know where your 401k investments are held and who they are funding? Most traditional 401ks do not support ESG (economic, social and governance) rated social investments. Rather, most focus on the very large scale businesses that are contributing to climate change with non-sustainable business practices.
Our environmental portfolio is made up of companies addressing their long-term environmental impacts, focusing on sustainable business practices, and prioritizing their effect on the surrounding environment – at a local and national level.
At Invested Interests, we believe that a national conversation regarding the truth about climate change needs to be brought to light, across party lines, for the good of our lives and the lives of future generations.
Questions about our climate change or environmental investment portfolios? Ready to get started with no minimum investment? Request a FREE impact investment consultation, and we’ll be in touch!