How Can I Align My Personal Values With My Investment Portfolio?

How Can I Align My Personal Values With My Investment Portfolio?

December 23, 2022

Did you know this is possible? Traditionally we thought of that as screening out investments from a particular portfolio. As this trend became more popular, we shifted our mindset to consider how we can include businesses that wish to use our dollars to make an impact in the world. If aligning your values with your investments is a priority, you want to be familiar with a few terms: impact investing and ESG investing.

Let's start with impact investing. These investments are made with the intention of generating a positive, measurable social and environmental impact. For example, some impact investors seek to support renewable energy or sustainable agriculture.

The second term is environmental, social, and governance (ESG) investing refers to a set of standards for a company's behavior used by socially conscious investors to screen potential investments. Think about climate change, relationships with the community, and internal controls.

There are also choices for faith-based investing. Churches cannot offer securities and investments directly to the public, but often the principles followed by religious institutions are available and are implemented into various investment strategies.

If you're a client of Summit Wealth Group or if you're interested in working with Summit Wealth Group, ask us some questions about personal values investing and share with us what's important to you. We'll be happy to provide some more information, help educate you, and construct a portfolio if that's appropriate.