We as a community wield immense power and together we can create change. Whether it’s choosing what you buy and where you buy from, who you bank with, or which companies you invest in, you can be intentional about what your money funds. With sustainable and socially responsible investing, we can choose to support companies that consider environmental factors such as water usage and carbon emissions and social factors such as treating employees fairly, companies that value diversity and inclusion and have diverse boards and senior teams, companies that consider all stakeholders and not only shareholders.
Here’s how you can get started in aligning your investments with your values. If you want to invest responsibly, it pretty much comes down to these 3 options:
Invest by yourself
Invest with a socially responsible robo-platform
Invest with a socially responsible financial advisor
Let’s go over the pros and cons of each option!
1. INVEST BY YOURSELF
Pros
Total control over everything you invest in and divest from
Your financial decisions are entirely up to you
Complete knowledge of all your investments
Cons
Investment management is time-consuming
You do your own research
Lack of access to professional investment advice and certain types of investments
2. INVEST WITH A SOCIALLY RESPONSIBLE ROBO-PLATFORM
Pros
Low fees
Low minimum balances
Easy to set-up
Cons
One size fit all investment portfolios
Lack of access to professional investment advice and certain types of investments
Doesn’t include financial planning
3. INVEST WITH A SOCIALLY RESPONSIBLE FINANCIAL ADVISOR
Pros
Face-to-face contact with your personal advisor
Investment portfolio is personalized to your unique needs
Access to comprehensive financial advice on a broad range of topics
Cons
Higher investment minimums
May have higher fees
Can feel like more of a commitment
Your personal financial situation and preferences will help you decide which option is best for you. For example, if you are looking to get started with a small amount to invest, say $10,000, and you don’t want to spend the time doing research on what to invest in, then you may choose to use a robo-platform that has the option to invest responsibly. However, if you have a bit more to invest and are looking for a financial advisor to create a personalized investment portfolio for you and also to be there for you when making other big financial decisions in your life, a wealth manager may be your best bet. It all depends on what you’re looking for and what your financial goals are.
Great job thinking about how you can align your money with your values! We hope this can help you figure out what you need to do to take the next step in being more sustainable and socially responsible. Let us know if you have any questions, we're here for you!