How to reflect your values through your investments

How to reflect your values through your investments

Now, back to our series on values-based investing…we’ve explored what the UN’s Sustainable Development Goals are, why values-based investing is so important and who it’s for but now we want to talk about YOU.

Are you wanting to reflect your values through your investments? Maybe the nonsensical jargon is putting you off? We aim to show you that it’s easier to invest ethically than you might think.

No matter what your financial and life goals are, taking into consideration your own values makes the journey of working towards these goals a whole lot more fulfilling.

We’ve put together a list of five things to consider when matching your values to your investments:

Establish what matters to you the most

Define your values. What are the activities that you would like to avoid investing in? What are the activities that you would like to encourage? Think about your lifestyle and personal goals; can these be matched to areas of social and environmental concern?

Understand the companies and industries that you’re investing in

What is their corporate social responsibility (CSR) stance? Do they have good governance and sustainable business practices? Are they trying to reduce their carbon footprint and support local and wider communities?

Be prepared to make compromises, if necessary

Striving for perfection is noble and remembering perfection is not always achievable is part of the journey. Do the best you can with what you have. Remember, this is only one area in your life where you can choose to do good. And, despite common assumption, you do not need to sacrifice performance.

Remember the principles of investing

These are some of the key principles that you should always bare in mind:

  • You want to maximise your return, whilst minimising your risk
  • Don’t forget to look beyond the labels and watch out for greenwashing
  • You shouldn’t put all your eggs in one basket, it’s better to diversify
  • Choose funds that can invest in different assets and in different geographical areas.
  • Be mindful to try to keep costs down as much as possible

All of the above factors contribute towards you getting the best return while still taking a comfortable amount of risk.

Find the right financial planner for you

A financial planning professional can help guide your investment choices so that you can improve your financial wellbeing, whilst supporting your personal values.

Things to consider when finding a professional financial planner:

  • Do they take a comprehensive approach, putting your goals first?
  • Are they able to put together a financial strategy with complementary elements?
  • Do they recommend any appropriate solutions, not just what they sell?
  • Are they an independent or restricted financial planning firm?
  • Do they use low-cost, evidence-based investment strategies?
  • Do they provide lifetime wealth forecasting and stress testing?
  • Do they charge fixed fees for their expertise (not a percentage of investments)?
  • Are they a Chartered Financial Planning firm?

How we can help

Our financial planners in Nottingham and Derby can work with you to establish what you want to achieve now and for the rest of your life, discussing your worries and priorities along the way. We analyse your entire financial situation now and forecast what it will look like in the future.

Then we design a clear plan, including advice about investments, minimising tax, and planning for the unexpected. All of which gives you the best chance of comfortably doing everything you wanted.

With our holistic financial planning philosophy Balance: Wealth Planning is expertly placed to help investors:

  • Understand how much profit they need to achieve their objectives
  • Understand the risks involved and help to manage them
  • Understand how to use their wealth for good, as well as potential gains

For more information on how values-based investing can help to meet your overall wealth planning objectives feel free to get in touch and speak to one of our Financial Planners.