INDUSTRY INSIGHT
WEALTH MANAGEMENT
SPONSORED CONTENT
RESPONSIBLE
INVESTING
PRINCIPLES
SUPPORT
GOALS-BASED
PLANNING
Provided by RBC Wealth Management and Eric A. Gregory, CFP®
A
pril 22 is traditionally set aside to honor Earth Day. First
formally recognized 48 years ago, it has evolved into
an international celebration, with nearly 200 countries
holding events to support clean air, clean water and other
measures to protect our planet.
Today, many individuals are upholding the ideals behind
Earth Day – every day – by making financial choices to reflect
their environmental values. And by using responsible investing
prin ciples to select the securities you own, you can likewise
incorporate your values into your goals-based approach to wealth
management.
Used in a manner similar to an alternative investment, you can
allocate a portion of your portfolio to responsible investments
for diversification purposes. Or you may allocate as much as you
wish to responsible investments without sacrificing your ability to
work toward your financial goals. The choice is yours.
To get started, talk with your financial advisor. You may want
to determine what issues you care about. For example, if you
are concerned about the environment, you might say global
warming, pollution and sustainability are all issues that matter to
you.
As a next step, you may want to prioritize which issue is most
urgent for you. You might then pick one issue in particular, such
as global warming, and focus your responsible investment efforts
upon addressing it specifically.
Alternatively, you may want to look for opportunities to
combine your interests and pick a sector of the economy with
consequences for all three hypothetical issues. In this scenario,
you might choose to direct your responsible investing efforts
toward the fossil fuel industry.
After prioritizing the issues, you may then want to determine
which responsible investing strategy to adopt. Generally there are
three widely accepted choices:
Socially responsible investing – This strategy uses a set of
parameters you define to remove or avoid investments you
may object to based on your values. Using the fossil fuel industry
example, it is for when you want to say, “None of this for me,” simply
by not participating in the financial success of oil producers.
Environmental, social and governance – This strategy allows you
to select money managers who seek investments that perform
well financially in addition to performing well on these desirable
metrics. Using the fossil fuel industry example, it is for when you
want to say, “I want to be a positive influence on this,” perhaps by
choosing managers who include environmental stewardship when
evaluating securities.
Impact investing – This strategy focuses on putting money to
work to solve a specific problem as a primary goal, with financial
return being a secondary, though equally necessary, goal. Using the
fossil fuel industry example, it is for when you want to say, “I want
to change this,” perhaps by helping capitalize oil producers making
strong progress toward renewable energy sources.
Adopting responsible investing best practices can be
empowering, both financially and in terms of your values. After all,
you are connecting three of the things that may be most important
to you: your deeply held personal beliefs, your financial goals, and
the wealth you have worked hard and invested carefully to earn.
This article is provided by RBC Wealth Management on behalf of Eric A. Gregory,
CFP®, a Financial Advisor at RBC Wealth Management, and may not be exclusive to
this publication. The information included in this article is not intended to be used as
the primary basis for making investment decisions. RBC Wealth Management does
not endorse this organization or publication. Consult your investment professional
for additional information and guidance.
RBC Wealth Management, a division of RBC Capital Markets, LLC, Member NYSE/
FINRA/SIPC
For more information on Eric Gregory and how he can help you achieve your financial goals, call 724.745.8180, or go to his website at
www.rbcwmfa.com/thegregorygroup. He’s also found on Linkedin at www.linkedin.com/pub/eric-gregory-cfp®/30/338/a40.
UPPER ST. CLAIR
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SUMMER 2018
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