3 Tips to Align Your Portfolio with Your Values
Your principles are important to you, so important that you want to make them a key player in your investment decisions. That's admirable, but just like with any other investment decision, it's important to be smart about how you go about it.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
Building a portfolio can often feel like an extremely personal endeavor. Investors may meticulously examine a stock’s or fund’s past performance, analyze sectors as a whole, research how management runs a company and more. But when it comes to portfolio allocation, the desire to align personal values with portfolio decisions is trending among investors of all ages.
More and more, investors are becoming interested in investing according to their beliefs. According to Natixis Investment Managers, “three-quarters of investors globally say it is important that they invest in companies that reflect their personal values.” And to take it a step further, it is of almost equal importance to all generations when making investment decisions that their investments are doing social good — silent generation: 67%, baby boomers: 68%, Generation X: 71% and millennials: 73%.
So, if you are an investor who wants to invest in line with your faith and/or values, how can you get started? Below are three tips to align your portfolio with what matters most to you.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
1. Define what matters to you.
At GuideStone® we focus on faith-based investing, so we screen out certain companies that do not align with our values, such as abortion, pornography, gambling, alcohol and tobacco. However, it is important to note that faith-based investing in practice is unique to each person, reflecting each individual’s passions, values and principles while taking the form of ESG (environmental, social and governance) investing, socially responsible investing, values-based investing, impact investing and so on. Define what matters to you and what you want your investments to align with (or avoid).
2. Consider mutual funds.
It can be daunting and research-intensive to create your own portfolio and investigate individual equities to make sure companies align with your values. However, there are mutual fund families that screen based on philosophies, such as faith-based or values-based investing. Mutual funds are a great solution, because they provide investors with a basket of securities that are fully vetted and not only align with a specific philosophy but are also overseen by financial professionals who monitor risk and performance on a daily basis.
3. Talk to your adviser.
If you want to incorporate values into your portfolio, be transparent with your adviser so he or she can act on your behalf to research stocks or funds that align with your preferences. While studies show there is interest in faith-based investing, we do see a disconnect between wanting to invest in this way and actually getting the ball rolling. Unfortunately, many investors are not even aware of their faith-based investing options because advisers are not broaching the subject with them. Make it clear what your values are and how you want them to align with your investment options.
As faith-based investing continues to trend upward, we believe it will become more common to discuss aligning values with investments. Until then, we recommend placing a figurative stake in the ground with your adviser by conveying that this concept should be considered when determining your long-term investment allocations.
Your values likely dictate many of your day-to-day decisions, so why should your investing habits be any different? Take control of your portfolio and understand that through certain mutual funds, you can align your wealth with your values and still maintain meaningful portfolio returns.
For more information on GuideStone Funds®, visit GuideStoneFunds.com.
-
5 Vince Lombardi Quotes Retirees Should Live ByThe iconic football coach's philosophy can help retirees win at the game of life.
-
The $200,000 Olympic 'Pension' is a Retirement Game-Changer for Team USAThe donation by financier Ross Stevens is meant to be a "retirement program" for Team USA Olympic and Paralympic athletes.
-
10 Cheapest Places to Live in ColoradoProperty Tax Looking for a cozy cabin near the slopes? These Colorado counties combine reasonable house prices with the state's lowest property tax bills.
-
Don't Bury Your Kids in Taxes: How to Position Your Investments to Help Create More Wealth for ThemTo minimize your heirs' tax burden, focus on aligning your investment account types and assets with your estate plan, and pay attention to the impact of RMDs.
-
Are You 'Too Old' to Benefit From an Annuity?Probably not, even if you're in your 70s or 80s, but it depends on your circumstances and the kind of annuity you're considering.
-
In Your 50s and Seeing Retirement in the Distance? What You Do Now Can Make a Significant ImpactThis is the perfect time to assess whether your retirement planning is on track and determine what steps you need to take if it's not.
-
Your Retirement Isn't Set in Stone, But It Can Be a Work of ArtSetting and forgetting your retirement plan will make it hard to cope with life's challenges. Instead, consider redrawing and refining your plan as you go.
-
The Bear Market Protocol: 3 Strategies to Consider in a Down MarketThe Bear Market Protocol: 3 Strategies for a Down Market From buying the dip to strategic Roth conversions, there are several ways to use a bear market to your advantage — once you get over the fear factor.
-
For the 2% Club, the Guardrails Approach and the 4% Rule Do Not Work: Here's What Works InsteadFor retirees with a pension, traditional withdrawal rules could be too restrictive. You need a tailored income plan that is much more flexible and realistic.
-
Retiring Next Year? Now Is the Time to Start Designing What Your Retirement Will Look LikeThis is when you should be shifting your focus from growing your portfolio to designing an income and tax strategy that aligns your resources with your purpose.
-
I'm a Financial Planner: This Layered Approach for Your Retirement Money Can Help Lower Your StressTo be confident about retirement, consider building a safety net by dividing assets into distinct layers and establishing a regular review process. Here's how.
