I’ll be honest – I didn’t always give thought to the social impact of my investment choices. Like many people, I’d spend a couple minutes reading through the investment options available on my 401k, look at historical returns, and make my selections.
But then I’d turn around that same day and spend half an hour in front of the laundry detergent aisle at the store researching surfactants to find the most eco-friendly brand.
How is it that I cared about being a conscious consumer, and yet I paid no attention to where I was investing my life savings?
Now, I don’t think any of us would walk into town with our life savings and say – hey, I’d like to buy a stake in that supplier for migrant border detention – but that’s exactly what we’re doing when we invest our retirement funds into a US large-cap index fund.
There’s a disconnection we feel with our investments. It’s funny money, and who really has time to look through the hundreds or thousands of companies in our portfolios. Plus, we don’t want to lose out on returns when we’ve worked so hard to earn those savings.
Read my article here on Three Reasons to Start Investing with a Lens on Impact.