Do you want every investment in your portfolio to reflect YOUR values?
Investors are starting to realize there’s more to investing than just watching numbers go up and down. Sure, growing your wealth is important…but why grow it at all costs?
That’s why people are aligning their investments with what they truly believe in.
The problem?
Many investors don’t know where to start. And without estate planning advisors who guide them through the process…their values never become part of their financial plan.
Fortunately, aligning your portfolio with your values can be simple. When done correctly, you end up creating generational wealth that your children will continue to build off of and pass down for generations to come.
Here’s what we’ll cover…
- Why Values-Based Investing Is Trending
- How Estate Planning Advisors Help Investors
- Faith-Based Investing Is On The Rise
- How To Align Your Portfolio With Your Values
- Avoid These 5 Common Mistakes
Why Values-Based Investing Is Trending
Values-based investing has skyrocketed over the last few years.
This isn’t something that’s going away anytime soon either. People are becoming more conscious of what they’re investing in. Whether it be faith-based values or simply investing in things that make them happy.
Working with estate planning advisors who know how to build wealth around your values is important. (Especially if faith is at the center of those values.) Christian financial advisors focus on helping clients invest their money while taking into consideration things that may go against their faith.
Faith-based investing alone saw fund assets surpass $100 billion back in June of 2024. That’s almost a 14% jump in just over a year!
Millions of dollars are being poured into investments that align with people’s beliefs and faiths. But investing with your values doesn’t stop there.
You can dig even deeper by building your estate plan around your beliefs as well. That way, everything you own is invested according to your family’s wishes, values and faith.
When you combine your estate plan with your investment strategy (with the help of professionals), you have yourself a powerful wealth building strategy that your children can carry on for years to come.
How Estate Planning Advisors Help Investors
Did you know that estate planning goes beyond just having a will?
Your estate plan includes your investment portfolio, your wishes on how you want things handled after you pass away and even your family’s values. Because of this, it’s critical to have advisors on your side that know how to properly plan for the future.
Estate planning advisors can assist you in…
- Identifying what you value most about your wealth
- Building your investment strategy around those specific values
- Structuring your estate plan in a way that supports your family’s faith and values
- Screening investments that may go against your family’s beliefs
What happens if you don’t have an estate plan that supports your family’s beliefs? Your investments could be supporting companies you wouldn’t normally want to. That’s why it’s crucial to have estate planning advisors that you trust.
Right now, 55% of Americans have no estate planning documents. Not a will. Not a trust. Nothing.
When you break down the statistics even further, you’ll find that most Americans know how important estate planning is. 83% of Americans say estate planning is very important but don’t have ANYTHING on paper to back up that claim.
There is a massive disconnect between knowing and doing. And for those who don’t plan, they could be destroying their family’s future.
Faith-Based Investing Is On The Rise
Speaking of faith-based investing…
When you invest based on your faith, you are screening your portfolio to make sure nothing you own goes against your religious beliefs.
This could mean screening out companies that provide abortions or evenly investing in companies that you worship at each Sunday.
Investors want to have their money and faith work together. Not be at opposite ends.
One study showed that faith-based funds have actually outperformed the S&P500 if we look at a 10-year trend.
Faith-based investing has now reached $130 billion dollars. And it continues to grow each day.
With new funds being launched left and right, investors have a wide variety of options when looking for faith-based investments. Whether you’re looking for equity funds, fixed-income funds, or a mixture of both…there’s a fund out there that aligns with your values.
Investing according to your values is possible. You don’t have to give up returns to do what’s best for you and your family.
How To Align Your Portfolio With Your Values
Not sure where to start? Follow this step-by-step guide.
Step 1: Define what you value most. Before you even think about investing one more dime into the stock market, you should know what you stand for. What are you passionate about? Where do you worship? Write down your answers and use them as a guide when building your portfolio.
Step 2: Evaluate your current investments. You would be surprised at how many investments may go against your beliefs. Take a look at your current stock options and evaluate if they’re things you would want your kids to invest in.
Step 3: Find advisors who align with your family’s faith. This step may be obvious, but you want to work with advisors who have personal experience with values-based investing. Whether it be through their faith or just pure belief.
Step 4: Screen your investments. With so many companies out there, it’s hard to determine which investments are right for you. Use faith-based screening tools to eliminate companies that you don’t want your hard-earned money supporting.
Step 5: Check in with your advisors. Times change. As do companies. Make sure you schedule time to sit down with your advisors to ensure your investments haven’t gone against your beliefs.
Avoid These 5 Common Mistakes
Even the smartest investors make mistakes when aligning their portfolios. Avoid these silly pitfalls that can cost you and your family tons of money.
- Not having an estate plan. Your investments shouldn’t have to speak for you when you’re gone. With a solid estate plan in place, you have a voice even after you pass away.
- Not working with the right advisors. All advisors are not the same. Make sure you work with advisors who understand your family’s faith and beliefs.
- Forgetting to watch your investments performance. Don’t just sit back and hope for the best. While aligning your investments with things you care about is important, you also want your money to grow!
- Not telling your family about your investments. Almost half of Americans believe their kids won’t follow in their footsteps when it comes to money. Talk to your spouse and kids about your investments so they know what you believe in.
- Set it and forget it. Just because you’ve aligned your portfolio according to your beliefs doesn’t mean you can forget about it. Markets change and companies you didn’t use to invest in before may become available.
Wrapping Things Up
Aligning your investment portfolio with YOUR VALUES is one of the best financial moves you’ll ever make.
When you take the time to invest in what you care about, you’re guaranteeing that your money is being worked for you. Not against you.
Your kids will also benefit from having investments that align with your family’s faith and beliefs. It’s a win-win for everyone involved.
If you’re ready to learn more about how you can align your investments with your values. Contact us today and lets discuss how we can help you leave a legacy that stands the test of time.
