Most of us that can afford to do so commit to setting aside at least a small portion of our paychecks to plan for retirement someday. Sometimes, we get involved enough to say that we want to be aggressive, or conservative. Some of us even go as far as to select which funds we use. These are all great options, especially when considering the roadmap to being able to retire - but most investors have next to no idea what companies they actually hold in their retirement portfolios.
For a lot of people - and advisors, that is totally okay. “Just get me to the end of my career, give me the best possible performance and the best possible options that I need to retire, and I’m happy.” But what about those of us that have fundamental beliefs that we want to own more of a company that reflects our values? What if we want to divest from positions that go against our fundamental beliefs?
In the past, we’ve seen lots of folks request that they divest from Blackrock, as their CEO was accused of using his (massive) influence to push a political, green-based agenda that may not have been as green as it was claiming to be (CNBC).
In more recent times, we’ve seen outcries for individuals all the way up to pension managers to divest from Tesla (Spectrum), as they protest DOGE-related decisions by their CEO that impacted family members, friends, and their communities.
Another thing that isn’t often considered, beyond the companies that we invest in, is the countries which we invest in. Some pension managers have billions of dollars of exposure to Chinese companies through index and mutual funds that have been blacklisted due to national security and human rights violations (WSJ).
There are investment advisors that aim to fill these gaps - some good, who can help you navigate the ins and outs of what you’re actually choosing to invest in, Some, however, will take advantage of your feelings and sell a promise, rather than a fleshed out plan to invest effectively in what you believe in! See our “Grift” blog for things to watch out for there. We like to educate people on the merit of Socially Responsible Investing (SRI), and how those types of investments work to help align your investment dollars from an advocacy position to create positive change in our world.
The bottom line is that with some research, or the help of an advisor, there may be ways to “Vote with your dollars” and truly put your money where your beliefs are!
*Please note, these opinions are my own and do not necessarily reflect the opinions of LPL Financial or JBA Wealth Management Group.