by Emily Scott, CFP at Financially Unbroken and author of Financially Unbroken for the Golden Years
If we believe our investments should reflect our values, faith-based and Stewardship investing offers a way to put that conviction into practice. It allows you to consider whether you want to invest in companies involved in industries or practices that conflict with your values, such as tobacco, gambling, adult entertainment, predatory lending, or other activities you believe are inconsistent with biblical principles. There are investment options designed to screen out companies involved in these practices. Several mutual fund companies, investment mgmt. firms, and financial advisors are working to solve this problem.
Investment managers use specialized screening tools to evaluate how a company makes money, including its involvement in certain industries and business practices. Depending on the strategy, screens may also look at a company’s ownership, acquisitions, mergers or other investments. Each firm has nuanced differences in its filters, but the goal is similar: to avoid investing in companies whose practices conflict with their stated convictions and to direct funds to companies that better align with those convictions. Faith-based and Stewardship investing provides a way to bring your investment decisions into greater alignment with the convictions and values you hold.
How Do I Align My Investments with My Values? One challenge is that it can be difficult to know what you’re investing in and what choices you really have. That’s where investment companies and advisors who understand faith-based strategies can help you navigate your options. A key initial step in aligning your investments with your values is knowing what is actually in your portfolio. Rather than blindly investing, take a step to learn more about the companies you’re investing in.
Then take the time to understand what different faith-based stewardship strategies might look like and evaluate whether your current retirement accounts align with the convictions you have. You can also find an advisor who understands both - investing and your values - to work with who can help you make those decisions. They can help you balance screens with diversification and an investment strategy.
Read Emily's full article here- https://greenmoney.com/when-stewardship-meets-investing/
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