Socially Responsible Investing with Your Self-Directed IRA
Nowadays, there’s no excuse for investing in companies that don’t share your values. With the huge variety and the methods available, it’s easier than ever before to invest consciously, and in every aspect of your life— even with your retirement fund. Self-directed IRAs give you a unique ability to truly vet your investments, so you can put your savings somewhere you feel good about. Socially responsible investing lets you put your money in where your mouth is, in investments that line up with your personal morals and beliefs.
In fact, it has been asserted that in the next two decades, these companies will not only be just as productive as traditional funds and companies, but more productive— as they’ll be more prepared for regulations and future market pressures.
Ready to put your savings to work, in a socially responsible way? Here are a few ways to get started:
Invest in a Mission
When you think about the broad future, what matters to you? Who’s working to make a difference in these areas? For example, if you’re passionate about clean water, looking to invest in clean water technology may be a way to begin. You should see who is out there trying to make a difference in this sector or get involved in groups that prioritize water cleanliness (even if it’s not their primary mission). Ask yourself— What matters to me, what problems worry me the most, and who’s doing something about it? Especially with the popularity of social media and crowdfunding efforts, you’re sure to find a few companies working towards your goals. But don’t forget to do your due diligence on the business practices as well— make sure they line up with your values, but also that the investment is sound. If not, you might just want to make a donation to this organization— and look for somewhere else to invest your funds.
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Invest in Sustainability
There are so many ways that how we’re living currently isn’t sustainable. From fuel, overcrowding, and water scarcity, there are a lot of sectors looking to be disrupted for the greater good. Which appeal to you? With the almost limitless new technology popping up every day, you can invest in clean energy, sustainable and eco-friendly building materials, biodegradable plastics— the list goes on. Just remember to ask yourself as you consider various companies, are these processes and practices good for the world, the planet, the environment, as well as a good investment? Are they sustainable long term? If you’re looking for something to change the world for the better while making a profit, these are essential questions to ask upfront.
Invest in Integrity
The investment itself may be socially responsible, but what about the fund or the company itself? Do you know who you’re you working with? Are you familiar with their leadership team? Do they have a track record of honesty and living up to their values? Do they have respect for human rights worldwide? You know which values matter to you— make sure these are present in your investment providers. It’s one thing to preach sustainability and honestly, it is quite another to live up to these promises. Do your research, talk to other investors, see what the word on the street is about these providers— are they doing what they say, or is it all just talk? It’s better to find this out before you invest.
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Invest in Accountability
Not only is honesty important, but accountability is essential. Sometimes things don’t work out exactly the way you plan, and it’s vital to have a company who will admit mistakes or address errors before they become critical. How transparent are their operations? Are the products and services safe and useful? Are their operations consistent with their stated mission, across the globe? If one day their process is found to be counterproductive, is this something you can trust they’ll address? You’ll want to know before you begin your investment journey.
Investing for your future doesn’t mean you have to forget about the future of the rest of the world. You can save and invest for retirement without compromising your morals, making the world a better place while growing your nest egg for the future. Opening a self-directed IRA with IRA Resources gives you even more ability to choose your investments consciously and sustainability, with the ability to personally vet each investment. Want to get started? We’d love to help! Call us 888-322-6534.