How Sustainable Investing Combines Profit with Purpose
As you near retirement, you may start considering the legacy you'll leave behind. In addition to accumulating wealth, you might have a desire to positively impact the world. Sustainable investing offers a way to pursue both goals.
The Great Wealth Transfer: A Unique Opportunity
Experts predict an unprecedented "Great Wealth Transfer" in the coming decades, where tens of trillions of dollars will transition from older generations to younger ones in the U.S. alone.
The digital age has provided unparalleled access to information, making younger generations more attuned to social and environmental issues and the impact of their financial decisions. As wealth passes to these socially and environmentally conscious generations, sustainable investing is becoming a key strategy for driving positive change.
But, younger generations aren’t the only ones driving this change. As you plan for the transfer of your wealth, consider joining this positive movement by choosing sustainable investing as an alternative to traditional charitable giving.
What Is Sustainable Investing?
Sustainable investing considers environmental, social, and governance (ESG) factors.
- Environmental criteria examine a company's environmental
footprint. - Social criteria look at relationships with employees, suppliers, customers, and communities, covering workplace safety and labor standards.
- Governance criteria evaluate leadership practices, including board diversity and corporate ethics.
Common sustainable investing strategies include:
- Exclusionary screening
- Impact investing
- Shareholder advocacy
- Community investing
Finding Right-Fit Investments
Sustainable investing has the potential to promote long-term positive impacts on important issues, and allows you to align your financial goals with your values. If this strategy is of interest to you, we can work together to determine the appropriate approach for your unique situation.
Contact your CCR financial professional today to discuss your options and start building a portfolio that reflects your values.
Sources:
[1] Great Wealth Transfer: Baby Boomers Set to Pass Down Trillions," Yahoo Finance, retrieved June 18, 2024, from http://finance.yahoo.com/news/great-wealth-transferbaby-boomers-110047810.html.
Disclosures:
ESG investing involves the exclusion of certain securities for non-financial reasons. This may result in the investor forgoing some market opportunities that may have been available to those not subject to such criteria. There is no guarantee that any investment goal will be met.
Follow us on social media for more timely content delivered directly to your news feed!