Election Day is here! Have you voted yet? If not, go get it done. You can find out where your polling location is here.
This year has felt like an especially woke one. Record numbers of people are turning out to vote. Social justice movements and the Black Lives Matter movement have hit an inflection point. Seems like we are all embracing our inner woke baby.
This wokeness may have infiltrated all aspects of your life as you’re wondering what kind of individual impact your actions can have on the world. You may have been recently inspired to become more aware of what your investments are supporting and are itching to talk to a financial advisor about your options when it comes to aligning your money with your values.
Meanwhile, more and more financial advisors are also jumping on the sustainable and socially responsible investing bandwagon (it’s about time!). The field of responsible, or ESG, investing is rapidly growing. In the U.S., which has lagged Europe in ESG investing, assets in sustainable index funds have quadrupled in the last three years and now represent 20% of the total. Millennials and women are driving an increased focus on responsible investing. They want to use their investment dollars to support their values in the same way they use their consumer dollars.
So how should you talk to a financial advisor about investing with a sustainable and socially responsible focus? Before talking to an advisor, it’s helpful to think about your own values and goals. Here are 3 questions to ask yourself:
What are my goals when it comes to working with a financial advisor?
What are my values? Where am I willing to compromise?
Are there any industries or companies that I specifically want to divest from or specifically want to focus on supporting?
Whether you are looking for a new financial advisor or are approaching your current financial advisor, here are some questions to help them help you align your money with your values and support the positive impact that you want to have:
What is the financial advisor’s investment strategy and investment philosophy?
Does this advisor have a demonstrated and authentic track record in values-aligned and ESG investing? What experience do they have in ESG investing? You want to make sure they are actually knowledgeable in the field and not just greenwashing.
How can they support you in pursuing your sustainable investment goals? Does the advisor have sustainably-focused strategies and can they customize their sustainable financial options to fit your needs?
How much of the advisor’s portfolio is sustainably invested? This will give you a better idea of how committed they are to responsible investing.
We’re beyond excited to have more and more clients and wealth managers embrace sustainable and socially responsible investing. Together we can create change and drive capitalism towards a direction that benefits us all. If you have any questions around sustainable investing or talking with a financial advisor about it, let us know! We’d love to hear from you and offer support where we can. You can also schedule a 30 min complimentary consultation with us here.
PS. If you want to take a closer look at your own investments, check out this article where we provide resources on how to find out if your money is invested sustainably.