DAVE RAMSEY

Dave Ramsey says: You can make impact on society through investments

Aug 3, 2021, 12:15 PM
(Pixabay Photo)...
(Pixabay Photo)
(Pixabay Photo)

Dear Dave,

A friend recently mentioned something called impact investing to me.

What exactly is this? How do impact investment funds perform, and what do you think about them?

— Carson

Dear Carson,

Impact investing generally aims to benefit society, while providing a profit for the investor, by investing in companies, funds and organizations that are aligned with causes, certain values or issues.

Think of it as a middle ground between traditional investing and charitable giving, where you can match your investing with your own particular beliefs. It really isn’t all that different from investing in traditional mutual funds, except for the goal of the funds.

Since their inception, impact investments have averaged returns of a little less than 6%. That’s well below the average return of the S&P 500. Impact investing can do some good, but the truth is it’s hard to measure exactly how much good it’s doing.

If you’re going to invest in impact investing funds, you need to make sure you understand exactly how your money is going to help the businesses you invest in, if they’re actually doing what they say they’re doing, and whether or not they’re really making a difference for the better.

As with all investments, it pays to do a lot of research and find an advisor with the heart of a teacher. And never invest in anything if you don’t completely understand how it works.

Remember, it’s your money that’s in the mix. Don’t feel like the odd man out if you’re the only one not joining in on an investment craze your friends are diving into.

Personally, I recommend investing in good, growth stock mutual funds and real estate paid for with cash.

And hey, if you want to make a difference in the world and still invest the old fashioned way, create room in your budget for charitable giving or saving with the goal of making donations to organizations and causes you care about.

I hope this helps, Carson!

—Dave

Dave Ramsey

(Unsplash Photo)...
Dave Ramsey

Dave Ramsey says: There are better options than no-money down home loans

“No down payment” mortgage loans allow you to buy a home from a position of financial weakness rather than a position of financial strength.
2 days ago
(Pexels Photo)...
John Delony

5 tips for dealing with toxic stress in your life

The human body can’t handle being in fight, flight or freeze all day every day. If stress is pervasive and persistent, your stress may become toxic. Here are five tips to help you get a handle on it.
4 days ago
(Pexels Photo)...
Dave Ramsey

Dave Ramsey says: Tweak idea for side gig to avoid too much debt

Playing around with $4,000 in debt to make $30 a pop for YouTube videos is a business risk, Dave Ramsey says.
9 days ago
(Unsplash Photo)...
Ken Coleman

Going in style: The right way to write a resignation letter

You’ve made the decision to leave your job. You’re almost out the door, and on your way to a new opportunity. But before you get too carried away, don’t forget to send a resignation letter.
11 days ago
(Pixabay Photo)...
Dave Ramsey

Dave Ramsey says: Hope and hard work can put you on path to financial success

Possibly the biggest factor separating those who stick with it and gain control of their finances, from those who give up and go back to their old ways, can be boiled down to one simple word - hope.
16 days ago
(Unsplash Photo)...
Christy Wright

You should know the history of these 3 American businesswomen

October is National Women’s Small Business Month. In honor of this month, here are some facts about three of American history's amazing female entrepreneurs.
18 days ago

Sponsored Articles

...
DISC DESERT INSTITUTE FOR SPINE CARE

What you need to know about spine health

With 540 million people suffering from lower back pain, it remains the leading cause of long-term disability. That’s why World Spine Day on Oct. 16 will raise awareness about spinal health with its theme, BACK2BACK. “BACK2BACK will focus on highlighting ways in which people can help their spines by staying mobile, avoiding physical inactivity, not overloading […]
...
Albertsons

Grill like a pro this fall with tips from Albertsons

As the weather cools and football season kicks off, it’s a great time to fire up the grill and enjoy your favorite outdoor meals.
...
BARROW NEUROLOGICAL INSTITUTE

More stroke patients eligible for acute treatment, thanks to research

Historically, patients underwent acute stroke treatments according to strict time guidelines. But thanks to recent advancements in stroke research, more patients are becoming candidates for clot-busting drugs and endovascular therapy at specialized centers like Barrow Neurological Institute.
Dave Ramsey says: You can make impact on society through investments