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| Advisor's Forum |
Higher Finance
12/01/2006
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My religious faith is critical to my life, and as I’ve gained substantial
financial success, I’ve grappled with how to combine my values and beliefs with
my wealth planning. I happen to be Christian, but I don’t know that my
affiliation is the issue. What specific ways can you recommend for blending
one’s religious approach with one’s financial life?
You’ve already taken the most important step: asking how faith and
investments relate to each other. Today, mutual funds are customized for people
of Catholic, Jewish, Muslim and Protestant traditions. Social Investment Forum
maintains a list of faith-based funds. If you are investing in individual
stocks, the list of companies that these mutual funds are already investing in
may be a good pool to consider.
Be clear on what’s most important in your
effort. Is it to avoid “bad” companies? Invest in “good” ones? Leverage your
power as a shareholder to encourage companies to improve their practices? Ensure
that some of your investments help the economically disadvantaged? These issues
are approached differently by each mutual fund.
Finding an advisor skilled in
meeting your needs is probably your most important task. You may find one in the
Social Investment Forum’s financial services directory or the service provider
database of the Interfaith Center on Corporate Responsibility.
Mark A.
Regier, MMA, Goshen, Ind.
Religious investors have a tradition of marrying their morals with their
money by evaluating the ways economic actions affect the world around them and
shunning investments that violate their religious tenets.
A growing number of
socially responsible funds aim to provide these services. Of the 201 socially
screened funds, 54 mutual funds employ faith-based screens. The first step is
researching funds to find those that share your goals and beliefs. Hiring an
advisor who understands your objectives—social and financial—may help tailor
your investments.
As more Americans rely on investments for retirement, the
public has called for corporations to act as responsible citizens. This has
produced a wealth of professional investors dedicated to the triple bottom line
(a better future in terms of finance, environment and social issues). The Social
Investment Forum and Co-op America provide an online directory of socially
responsible professionals and products around the country.
Kate Rosow, Social
Investment Forum, Washington, D.C.
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