Fifty years ago, when the concept of financial planning was born, it was really all about retirement planning. The key question was: “Am I going to have enough money to sustain me in retirement?” As a result, the central organizing principle of the financial plan was almost always a simple…
Even though it doesn’t earn you much return over time, every investor knows that cash is an important component of your overall financial strategy. Beyond providing liquidity for ongoing transactional needs, every household needs to hold cash as a reserve for emergencies. In addition, many experienced investors use cash accounts…
It’s that time of year—the potential of receiving a college acceptance letter makes checking the mail a little more exciting than usual. The cost of college has jumped four times as fast as the rate of inflation over the last ten years. The numbers facing students (and their parents) are staggering. College is expensive and can leave graduates suffering under a huge financial burden well into their professional lives. It’s bad enough that the cost of higher education creates such a burden for students, but families can also suffer. Parents who foot the bill for their children’s education can find themselves unwittingly making tradeoffs with severe consequences for their own retirement. So how can you help your child get through college without sacrificing your retirement?
Over the past several years, the idea of an investment strategy designed to promote a healthy planet and population has moved from being a niche project into the investing mainstream.
You can invest in funds that align with a variety of environmental and social goals: companies with female CEOs, companies that promote anti-racism, carbon-neutral companies – there are endless possibilities.
So what exactly does “sustainable investing” mean? And how should we define success when the goal is more than simply building wealth? Can we meet environmental or social goals without compromising the fundamentals of prudent – and successful – investment practices?
Today, I want to look at one definition of a “sustainable” investment strategy. Understanding what it is (or can be) is important if you want to consider incorporating such a strategy into your own investment program.