Being an ESG Millennial Investor

In talking with millennials, I find many have a difficult time thinking about investing. When retirement is so far away, living today is much easier than saving for the future.

I always point out to my millennial friends, the earlier you start on the road to investment – the earlier you make putting money aside for your future a priority – the better off you’ll be. Every year you put off investing means money won’t be there when you decide you want to retire early. And saving cash is not the way to reach your goals.

You can put your money in a 401k mutual fund, and – just by doing that – you’ll be way ahead of the game, compared to those who put money in a bank savings account. The cool thing I like to show millennials is they have the opportunity to allow their investments to make a real impact in the world.

It used to be that socially responsible investing meant you would eliminate stocks that don’t reflect your values. Let’s say you were a Boomer concerned about the environment. Your strategy might be to eliminate any fossil fuel stocks from your portfolio.

A Millennial looks at that as passive investing. He or she wants to invest in stocks that will make an impact. Many turn to stocks with environmental, social or governance (ESG) goals. Research has shown that ESG companies actually produce more reliable earnings and can outperform the market. ESG companies are defined as those that focus on environmental performance, with outstanding social policies towards employees, suppliers and others, and have effective governance through leaders who are honest and equitable when it comes to executive pay and shareholder rights

I’d love to discuss a portfolio that can have an immediate impact and will serve you well into the future. To get things started, click the “schedule a consultation” button below.

This blog was written my Erica Moyer.

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