(StatePoint) Did you know that a thoughtful investment strategy can go beyond simply delivering big returns? Financial professionals say that with some careful consideration, it can also reflect your values.
To help you get started, CERTIFIED FINANCIAL PLANNER® professionals answer some commonly asked questions about how to align your finances with what matters most to you:
How can I be a responsible investor?Socially responsible investing (SRI) is a strategy that aligns your portfolio with your passions and involves seeking out investment opportunities with companies that follow environmental, social and governance (ESG) standards. For example:
• Does the company work to minimize its environmental impact?
• Does the company treat its employees and stakeholders fairly?
• Does it support social programs in its community?
• Does the company employ ethical governance and legal practices? Does it conduct impartial internal audits? Is its decision-making transparent and accountable?
How can I research ESG investments? First, determine your priorities, then do some research. You can find information about ESG investments on websites such as GreenInvestor and Morningstar. For a list of socially responsible mutual funds, visit the US SIF website.
Following the news can help you identify which companies are making a positive impact. A CFP® professional can guide you in avoiding unethical companies, finding meaningful investment opportunities and ensuring that your strategy continues to move you toward your financial goals.
What does ESG investing look like? Beyond traditional stocks and bonds, SRI choices can include mutual funds and exchange-traded funds (ETFs), alternative investments, such as peer-to-peer lending and farmland investments, community development financial investments that provide services in low-income areas, and micro-financing that supports startups worldwide, including in developing countries.
How else can I give back? In addition to socially responsible investing, your financial planning strategy can also include philanthropic giving. This might mean contributions to the charity of your choice, planned giving in your will or contributions to a donor-advised fund. Your CFP® professional can help you structure these donations to maximize their impact while optimizing tax benefits.
To find a CFP® professional who will help you invest in the future you want to help create, visit LetsMakeAPlan.org.
With a smart plan and a financial advisor’s guidance, you can make a meaningful impact on the world, no matter how much money you have.
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