As most people across the country might be dealing with rain and relatively cool weather, one way to probably warm up the season is by aligning portfolio with your values. Wondering what does it mean? Does that big tobacco company in your investment portfolio really make you feel fine? Well, no longer you have to fear. Listed below are a few ways to make your dull portfolio more sustainable and in accordance with the 2020s.
Choose sustainable Funds and ETFs
It is high time to switch to environmental, social and governance (ESG) or socially responsible investment (SRI) criteria exchange-traded funds and mutual funds. Today, there are plenty of ETFs and mutual funds to do the sustainability screening for you. In case you want a “low carbon” ETF, there is an option. For those who want more gender diversity in their investment portfolio can find it. The list is never ending.
Select a fee – only, substantially-focused advisor
If you are someone who is dependent on stockbrokers of dad or have no plans to do it yourself then it is the right time to switch to fee-only, substantially-focused investment advisor. Such a professional charges only an annual management fee of less than one percent. Owing to the fact that most people, today, have busy lives and packed work schedules which leaves them with little to no time of staring at their investment portfolio. This is one of the main reasons that why most people see the value in paying an advisor who can do investment for them and do it in accordance with their timeline and risk profile.
Look for more SRI options in retirement plans and schemesAsk your HR person to include more SRI options in your retirement plans. Has it ever happened that you stare at 401 (k) scheme paperwork and just end up choosing a fund because it sounds great? Well, if yes, then that is not cool at all. One aspect of your HR director’s job is to look for a 401 (k) plan that best fits its employees. You can send them an email asking about the availability of ETF or sustainability fund options? You might find it surprising how easily they fix it.
Say goodbye to Exxon Stock
It is time to bid goodbye to grandmother’s Exxon Mobil Stock. Alright, so you were one of those fortunate who inherited grandmother’s old Exxon stock she had since the 50s. And great job on choosing the stock when oil was the hip thing to make investment in. however, it is the time to release that your grand mom might be totally fine with you divesting this stock and reallocating into something which is better for future generations. If tax consequences worry you then remember it is always good to pay some taxes on capital gains then not to have any profits at all.
The best way to make the right investment is by scheduling an appointment with the financial advisor who has experience and expertise in this field.