…one investment at a time.
Earlier I wrote about values-based planning, where a client’s values are a top consideration when planning. This month I would like to dive a little deeper and discuss the concept of Values Based investing. You may have heard the term ESG investments, it has grown in popularity over the last few years and now most all major investment companies offer some time of ESG investment option. ESG stands for Environment, Sustainability, and Governance. ESG investments consider the impact of business operations on the natural world, society, and how they run their business.
To be clear, values-based investing is not ESG, or not entirely. Values based investing takes a certain set of values and then looks for opportunities to invest in ways that support those values.
Why choose values-based investments
As a fiduciary, Flourish Financial Life Planning chooses investments in a way that puts the client’s needs first. I feel it is my duty to not only protect client money but to steward those funds in the highest ways possible. One of the core values of Flourish Financial Life Planning is stewardship. For this reason, I take values-based investing (VBI) seriously. I look for opportunities to invest money in companies that are trying to make the world and society better overall. When money is invested in a way that supports your values, stewardship is taken to a deeper level. Not only is the money invested wisely financially, but it is also invested wisely for society and generations to come.
Investments you can feel good about!
When you invest in stocks, you are actually an owner of those companies who are doing business in the real world. If you invest in mutual funds, your ownership might be tiny but it is ownership none the less. As a “company owner,” don’t you want to own companies that take care of their customers, employees, vendors, and make the world a better place? This is values-based investing at the basic level. Values based investing is part of a financial plan you can feel good about!
