Socially Responsible Investing
Brent and I filled out paperwork for his 403(b) yesterday. A new benefit at his job, starting next year. Brent's employer chose AG Financial for their investment company. They chose that company because their investment strategies fall in line with what they believe in. From their website:
Brent and I also started a Savings Account (through payroll deduction) with them. The Savings plan money goes to fund loans taken out by other Assembly of God churches and employees (maybe even our own church). Again, it's something we believe in.
Our business loan is through a bank that notorious for helping out small community businesses. Our checking account is in a credit union run by my employer. If you only ever drink Coke products, why would you want to invest in Pepsi Co.? If you're a vegan, why would you want to invest in the Texas Beef Council? Invest in what you know and love.
The bad news is, AG Financial's investments and savings plans are (as far as I know) only available for employees of the Assembly of God church. The good news is that there are hundreds of other socially responsible investment options. Here is a link to a list of some socially responsible investments. There are many more, if you just look for them.
Happy investing!
A/G Financial investment strategies screen out those companies that are predominately known for and/or derive significant revenues from abortion, alcohol, gambling, pornography, or tobacco. The MBA Fixed Income Fund provides the financing to plant, build, and grow churches.
Brent and I also started a Savings Account (through payroll deduction) with them. The Savings plan money goes to fund loans taken out by other Assembly of God churches and employees (maybe even our own church). Again, it's something we believe in.
Our business loan is through a bank that notorious for helping out small community businesses. Our checking account is in a credit union run by my employer. If you only ever drink Coke products, why would you want to invest in Pepsi Co.? If you're a vegan, why would you want to invest in the Texas Beef Council? Invest in what you know and love.
The bad news is, AG Financial's investments and savings plans are (as far as I know) only available for employees of the Assembly of God church. The good news is that there are hundreds of other socially responsible investment options. Here is a link to a list of some socially responsible investments. There are many more, if you just look for them.
Happy investing!
Labels: Environment, Saving Money
posted by Tracy at 7:00 AM
1 Comments:
Socially responsible investing is fine if you're wired that way. It's a choice, like any other. However, there's a fairly large body of research indicating that socially-responsible investment funds underperform funds without that constraint.
Off the top of my head, it seems like there's about a 2%-5% per year underperformance in terms of returns for these funds (relative to non-socially responsible funds).
That's not to say that you shouldn't invest in these funds - just that there's a cost, and you should make sure that the satisfaction you get from being socially responsible should be worth the loss in retruns.
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