Howto In­vest for Good

Real Simple - - Contents - By Kate Rock­wood

Save for the fu­ture and sup­port a cause

YOU WANT TO SUP­PORT CAUSES YOU BE­LIEVE IN— BUT

STILL MAKE STRIDES IN YOUR LONG-TERM SAV­INGS? WITH IM­PACT IN­VEST­ING, YOU MAY BE ABLE

TO HAVE YOUR CAKE AND SHARE SOME TOO.

A NEW STYLE OF IN­VEST­ING, called im­pact in­vest­ing (con­sider it an off­shoot of the more widely known so­cially re­spon­si­ble in­vest­ing), makes it eas­ier to sup­port causes you be­lieve in—and get a re­turn on your hard-earned dol­lars.

In the early days of so­cially re­spon­si­ble in­vest­ing, peo­ple would pull out big cat­e­gories of stocks they found ob­jec­tion­able— Big To­bacco, for in­stance—and not be too con­cerned about whether the re­main­ing com­pa­nies were work­ing to­ward pos­i­tive change, says Jake Raden, co-lead of the im­pact team at the in­vest­ing plat­form Swell. But for many peo­ple, this is no longer enough. They want to proac­tively put money be­hind causes they care about—say, in­vest only in clean-en­ergy com­pa­nies or firms that pay em­ploy­ees well. Now it’s pos­si­ble to do just that in a mat­ter of min­utes (no fancy in­vest­ing in­sights re­quired), thanks to on­line plat­forms that of­fer di­ver­si­fied port­fo­lios and trans­par­ent info about fees and per­for­mance.

And when it comes to per­for­mance, don’t worry you’ll have to sac­ri­fice your re­turns, says Dave Nu­gent, head of in­vest­ments at the on­line plat­form Wealth­sim­ple. “What we’ve seen from our client base is that peo­ple who be­lieve in more than just in­vest­ing for re­turns end up hav­ing bet­ter out­comes,” he says. “That’s prob­a­bly be­cause they’re less likely to pull out money when the mar­ket dips, since they’re in­vest­ing for more than just re­turns.” Read on for ways to in­vest no mat­ter your goal.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.