We say a lot with our money. We often spend it at particular businesses because of causes they support. Other times, we find ourselves patronizing one business over another due to better alignment with personal beliefs.
Investors also can do this with their retirement and investment accounts. Perhaps you’ve heard of the term “values-based investing,” which incorporates nonfinancial factors such as personal values, moral principles and social beliefs into investment decisions.
This is an investment area that is growing.
Total assets under management in portfolios screened for social issues increased from $640 billion in 1995 to over $2 trillion in 2001, according to a report from the Federal Reserve Bank of Boston.
You may not have the time to research every company or mutual fund before determining whether you want your money invested there. If that’s the case, you’re in luck. Some investment companies have noticed the increased interest in this and are doing the work for you.
There are investment firms that don’t invest in companies that are in controversial industries such as pornography, gambling, abortion and tobacco.
Some investment firms actively seek out companies that work to reduce risk or increase sustainability.
For example, they may invest in companies that meet certain environmental markers, have a demonstrated record of treating employees fairly or maintain sustainable business practices.
There also are investment firms that promote “biblically faithful investing.”
I heard for years before I became a financial advisor about people who wanted to invest in a way that left their conscience clear. It has been refreshing in the years since I became a financial advisor to observe that people can do this and not necessarily sacrifice performance.
This topic has been on my mind in 2025 because I have had several meetings with prospective clients who didn’t want to invest in certain industries or specific companies for various reasons.
I was happy to share with them that we could omit some investments and still have a high probability of success in working toward their retirement goals.
I’m taking great care, dear reader, to avoid naming any investment firms specifically to avoid the red pen of our compliance department. But I hope this article lets you know that if values-investing is important to you, I can offer you some recommendations that are designed to align with your goals. Please reach out if I can answer your questions.
August 2025
Socially Responsible Investing (SRI) / Faith Driven Investing (FRI) has certain risks based on the fact that the criteria excludes securities of certain issuers for non-financial reasons and, therefore, investors may forgo some market opportunities and the universe of investments available will be smaller.
