Case Study: Lauren and David* -- Achieving their Impact Investing Goals
Lauren and David came to Old Peak with a desire to invest according to their values, but they didn’t know where to start. Their previous advisor had recommended certain sustainable funds, but they weren’t sure what that meant.
Their goals were to:
- Gain a better understanding of their current investments
- Increase the percentage of sustainable funds they were holding
- Consider how to invest in their local community
- Make an impact outside of the banking and investing system
Their primary focus was environmental. We were able to explain to Lauren and David what percentage of their current investments were invested in fossil fuels and deforestation practices. Because of our deep knowledge of sustainable investing, we were able to suggest additional funds that would better reflect their environmental concerns.
We proposed a mix of passive index funds that focused on environmental sustainability as well as active fund managers that engage with companies to improve their practices to mitigate against climate change.
In making these recommendations, we increased their holdings of sustainable funds, while decreasing their fossil fuel exposure. Their overall investment mix continued to be well diversified with an appropriate risk profile for this couple. We also minimized their tax burden by making changes in tax-deferred accounts and with new inflows rather than creating turnover in their taxable accounts.
We then worked with them to move a portion of their cash to a local credit union to be invested in a green CD. Their funds are earmarked for lending to eco-friendly initiatives.
They also cared deeply about preserving forest land, so we worked with them to commit a certain portion of their assets to purchase forest land directly in order to preserve this for future generations.
Lauren and David are now confident that their investments reflect their values.
* name changed to protect privacy
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