Socially responsible investing is a unique way to build a portfolio while changing the world
Socially responsible investing—that which aligns an investor’s personal beliefs and faith with their investments—has gained in popularity. As a result, so have ways to invest with social conscience.
In the past, financial advisors would direct investors to consider an investments historical and future returns, while in many cases ignoring the company’s social impact.
Today’s investors, on the other hand, want to make a positive difference in the world by directing capital into socially beneficial areas of the economy. Depending on their values, investors may favor investments that focus on protecting the environment, those that use fair-trade practices, or those that align with their religious principles.
In the public markets, investors may choose to prioritize ESG (environmental, social and governance) as well as profit and performance when considering their investment choices. In the private capital markets, investors may accept less, or completely forego, profit for an investment, in order to accomplish another goal, such as community empowerment.
Applying criteria based on social goals, investors can put their money to work in a variety of ways. Some may prefer to buy stock or bonds in individual companies that donate to communities or charities that are important to them. Or an investor may prefer to focus on education using municipal bonds that help build or maintain schools. There are the dozens of publicly traded mutual funds that ascribe to various principles for filtering investments, rather than looking exclusively at performance. Socially Responsible Investing (SRI) / ESG investing carry certain risks based on the fact that the criteria exclude securities of certain issuers for non-financial reasons and, therefore, investors may forego some market opportunities and the universe of investments available will be smaller.
Whatever your reason for wanting to build a portfolio, a conversation with a financial advisor should be your first step. As professionals, we are trained to assist each client in finding the best fit of any security based on his or her unique financial situation.
If you are looking for a fee-based advisor that is independent, and you have at least $100,000 to invest, let’s explore working together. Stratos Wealth Partners are a group of professionals with decades of experience in providing financial guidance, impartial strategies for wealth accumulation and tax management.
Contact us by phone at 928.460.5507, visit www.prescottwealthmanagment.com, or stop by our office in the Old Santa Fe Train Depot, 100 E. Sheldon Street, Suite 105, Prescott, Arizona 86301.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Securities offered through LPL Financial, member FINRA/SIPC. Investment advice offered through Stratos Wealth Partners, Ltd., a registered investment advisor and a separate entity from LPL Financial. Stratos Wealth Partners and LPL Financial do not provide legal advisor or tax services. Please consult your legal advisor or tax advisor regarding your specific situation.