ESG: The Present and Future of Ethical Investment How Investors Rank Ethical Business Practices
Investment and ethics can sometimes be at odds with one another. Historically, investors haven’t prioritized the moral implications of giving money to companies with dubious business practices. Today, some people hesitate to invest in companies that compromise their values, but with ESG, they can have a clear conscience. Environmental, social, and corporate governance (ESG) is a new investment approach that gives investors a real voice. What does ESG mean?
factors to determine ESG scores. They use a 1–100 scale; the higher the number, the better their ESG ranking. How do I invest in ESG? There are several methods to find and invest in ESG-conscious companies. Financial advisors specializing in ethical investing can lead you in the right direction, showing you companies with solid returns while following sustainable business practices. Some prefer to put their money in ESG mutual funds. Experienced brokers and managers invest for you, picking organizations that show promise in growth and ethical impact. Some focus on specific parts of ESG, especially environmental investment. ESG is about Investing in your values. ESG investment is a revolution in ethical investing, streamlining the process to help ethically conscious companies. But it’s not an accident: A network of research firms, funds, and brokerages work to support this new method of ethical investing. You shouldn’t have to sell your soul to make money on your investments. The bottom line is to be smart about your investments. Do your homework before making any investment decisions so you can earn the best returns in a way most compatible with your values and financial goals.
E is the environmental category and refers to companies following sustainable business practices or creating products that combat climate change, deforestation, and other environmental concerns. S is for social, which emphasizes human rights and community relationships — for example, fair trade certification, which warrants that producers of a product are fairly compensated for their work. This would be absolutely necessary for investors in social-oriented organizations. G gives investors a standard for corporate governance to ensure companies have equitable compensation for employees.
Who determines what companies are ESG-conscious? Research firms like Bloomberg compile stats on a wide variety of companies to ensure investors know where they’re putting their money. Researchers look at annual reports, company structure, and other
Asset Appraisals Are Vital to Retirement Planning KNOW YOUR FUTURE
you report them accurately. Here are a few cases where it's essential to hire an appraiser. Retirement Everyone has a unique lifestyle, and making a retirement plan that allows you to keep it is vital. Since you won't be working, this is primarily determined by your savings, passive income, and assets. A comprehensive understanding of your assets' true worth allows you to better prepare for the future. You'll want to know if an asset can pay for part or all of your retirement needs and wants. Estate Planning You need an appraisal to leave the best legacy for your loved ones. First, it's easier to split assets if you know their value. If you want to give out equal parts of your estate, accurately assessing your assets protects your family from turmoil. Nobody likes to feel left out, and estate disputes are a common source of family division.
Furthermore, the sum total of your assets determines whether or not you're subject to estate taxes. Most people don't have to pay an estate tax — the federal estate tax only affects those with more than $13 million in assets. If you wonder if you're in that category, find an appraiser today. Selling Property If you're selling property, you must know how much it's worth. Property value changes over time for several reasons, including the neighborhood's desirability and the overall economy. Only an appraiser can accurately estimate the value of a property. An appraisal is essential for anyone who wants to retire with peace of mind, create an accurate estate plan, or sell a property. Most people fall into these categories and should get an appraisal. If you count yourself among them, give us a call today.
We accumulate myriad assets throughout life, from rare books to motorcycles to outsider art. It isn't easy to keep up with the total value of your assets, which you will need to know during estate planning. And the only accurate way to do that is through an appraisal. A professional appraiser can accurately assess the market value of your assets, ensuring that
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