How I’m Aligning My Investments with My Values
With a Note on my Angel Investing Adventures
The uncertainty surrounding the economy and potential policy shifts is enough to make any investor rethink their strategy. In my own financial planning, I’ve taken specific steps to align my investments with my values and brace myself for what might come next. Here’s how I’m approaching my portfolio, balancing my financial goals with a commitment to making a positive impact—and preparing for some bumps in the road ahead.
1. Sticking with Low-Cost Index Funds
One of my core principles in investing is to keep fees low and avoid the administrative costs that come with frequent fund switching or high-cost mutual funds. Index funds allow me to do just that. By investing in a diverse basket of companies, I can capture broad market growth without being weighed down by high fees. The low-cost nature of index funds also makes them a reliable component of any long-term strategy—helping me stay the course even when the headlines start to get stormy.
2. Aligning My Investments with My Values
Investing according to my values means prioritizing companies and funds with strong track records in areas that matter most to me: environmental sustainability, social justice, and employee treatment. Today’s markets offer plenty of options for socially responsible and ESG (Environmental, Social, Governance) funds that let investors direct their dollars toward companies that are doing right by the planet and people.
For me, this value-based approach doesn’t just feel good; it makes financial sense. I believe that companies focused on ethical practices and sustainable growth are better positioned for long-term success. I may not have a crystal ball, but investing in companies with values aligned with my own gives me confidence and peace of mind, even during volatile times.
3. Investing in High-Impact Startups through Angel Investing
I’ve also recently directed a portion of my Roth IRA funds into an angel investment fund, and this decision was a little more adventurous! Angel investing is high-risk, no doubt about it, but I’ve reduced some of that risk by working with Portfolia, a platform that spreads my investment across multiple startups. The focus areas—women’s health, the environment, and social justice—reflect causes I care deeply about. This strategy lets me support companies that aim to make a positive difference, and it keeps my investments diversified.
Angel investing is speculative, and I view it as a high-risk complement to the rest of my portfolio. For anyone considering this type of investment, be aware that these startups carry a high degree of uncertainty, but for me, that’s part of their potential reward. If any of these companies succeed, they could deliver outsized returns while driving meaningful change.
NOTE: The SEC makes it difficult to get into these types of investments. To qualify, you have to be an accredited investor, and that’s not easy. The most common qualifications: a net worth of at least $1,000,000 (not including the value of your primary residence) or individual income exceeding $200,000, or joint income with a spouse exceeding $300,000, in each case, in each of the prior two years along with a reasonable expectation of the same income level in the current year. If you’re not there, it’s something to strive for!
4. Building a Cash Cushion for 2025
With so much economic uncertainty, I plan to build a more substantial cash reserve in early 2025, ensuring I have a year’s worth of living expenses on hand in a money market account. This move is a conservative measure designed to give me flexibility and peace of mind, especially if inflation accelerates or the market takes a dive.
A cash cushion is an excellent way to ride out economic turmoil without needing to dip into long-term investments. Money market accounts offer easy access, and although they don’t typically earn high returns, they’re reliable in times of volatility. I see this as an investment in my own financial resilience.
5. Preparing for Inflation with TIPS and Essential Goods
Rising inflation is a real concern, especially if new tariffs or economic shifts increase the cost of everyday goods. If inflation spikes in 2025, Treasury Inflation-Protected Securities (TIPS) could become a valuable part of my strategy. These government-backed securities are specifically designed to keep pace with inflation, helping protect my purchasing power if the dollar starts to lose value.
Additionally, if prices start to rise sharply, I might consider stockpiling certain essential items. This doesn’t mean filling my shed with canned goods, but keeping a bit extra of what I use most frequently could make financial sense—and provide some peace of mind.
Taking Action and Staying Grounded
This post-election period has people feeling rattled, but it doesn’t have to result in rash decisions. These strategies reflect my efforts to manage my investments with a blend of caution, growth, and values-driven purpose. They might also give you a few ideas about how to approach your own financial planning as you navigate the shifting landscape.
Investing for both growth and impact doesn’t mean abandoning caution or making extreme moves. It’s about grounding your strategy in what matters to you—and preparing, as best you can, for what lies ahead.