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I am just starting teaching, as well as, investing. I am thirty and want to maximize my money making potential, however I want to be socially responsible. Am I being naive in thinking that I can make enough money for retirement and use a lender that invests responsibly?
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Investing Socially Responsible?
#2
Posted 21 August 2005 - 09:26 PM
I think it's great that you want to invest in responsible companies. At one point, I wanted to do this myself. However, I was dissuaded by an article that I read at some point (unfortunately, I can't remember the source of the article) that discussed how the definition of "socially responsible" is up to the fund manager and that many "socially responsible" choices were, in fact, not so responsible. I'll make up some examples that will give you the gist of the article:
-- A fund excludes tobacco companies, but includes mammoth companies that pay poor wages/benefits and drive small businesses off the face of the Earth.
-- A fund excludes a clothing manufacturer for exploiting a cheap labor force oversees, but then invests in clothing companies that pepper our youth with semi-pornographic images of anorexic models and high price/low quality trendy merchandise, including leather materials from a farm with poorly treated cattle.
-- A fund includes "green" companies that use only organic materials, but ship their goods throughout the country in polluting diesel trucks and coal-burning trains (ironically using coal from a mining company that was excluded from the fund because of its environmental hazzards).
That sort of thing. Here's a specific case: Vanguard's Calvert Social Index Fund includes Microsoft (some people may object to alleged monopolistic endeavors) and Bank of America (a company that has trounced small personal banks and set up impersonal, high-fee ones). The fund also invests heavily with category killers such as Target, Home Depot, and Lowe's. Don't misunderstand me - I don't think these are bad companies, but I'm not sure they are very good for us socially and environmentally. (I know that Home Depot, for instance, sells a lot of pesticides and products with gas engines that aren't good for the environment.) The Calvert Fund invests in 625 companies. I bet many have their skeletons. But, hey, if you can find a social fund that has good performance and reasonable fees, you might want to go for it (the lesser of two evils approach, perhaps).
-- A fund excludes tobacco companies, but includes mammoth companies that pay poor wages/benefits and drive small businesses off the face of the Earth.
-- A fund excludes a clothing manufacturer for exploiting a cheap labor force oversees, but then invests in clothing companies that pepper our youth with semi-pornographic images of anorexic models and high price/low quality trendy merchandise, including leather materials from a farm with poorly treated cattle.
-- A fund includes "green" companies that use only organic materials, but ship their goods throughout the country in polluting diesel trucks and coal-burning trains (ironically using coal from a mining company that was excluded from the fund because of its environmental hazzards).
That sort of thing. Here's a specific case: Vanguard's Calvert Social Index Fund includes Microsoft (some people may object to alleged monopolistic endeavors) and Bank of America (a company that has trounced small personal banks and set up impersonal, high-fee ones). The fund also invests heavily with category killers such as Target, Home Depot, and Lowe's. Don't misunderstand me - I don't think these are bad companies, but I'm not sure they are very good for us socially and environmentally. (I know that Home Depot, for instance, sells a lot of pesticides and products with gas engines that aren't good for the environment.) The Calvert Fund invests in 625 companies. I bet many have their skeletons. But, hey, if you can find a social fund that has good performance and reasonable fees, you might want to go for it (the lesser of two evils approach, perhaps).
#3
Posted 07 September 2005 - 05:40 PM
Ariel Funds, which used to be Calvert- Ariel has a socially responsible fund, or several of them. They are a high rated company, never been implicated in any bad stuff. Check them out at: www.arielmutualfunds.com
I have several funds but have kept Ariel since the early 80s and it has done OK the whole time. I don't think they are pushing the idea of Socially Responsible any more, but they are a good fund as far as I know...you will have to do your own evaluation.
I have several funds but have kept Ariel since the early 80s and it has done OK the whole time. I don't think they are pushing the idea of Socially Responsible any more, but they are a good fund as far as I know...you will have to do your own evaluation.
#4
Posted 09 September 2005 - 04:10 PM
Smansage..Pax World is on of the oldest socially responsible funds with an equity fund and balanced fund. The stock fund was my first fund to get into when I realized what I was paying each year to the agent who sold me the other stuff and I needed to make a cost-effective move. Now you have three choices...but as a starting out 30 year old you will have to see what your district provides and then get started. The sooner you start the better off you will be..but not if you get sidetracked by an annuity salesman...see what your choices are and post them here..maybe some people have experiences which can help you...and most of all, congratulations for getting into this at this time in your life...Dan
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