Investing
Let's step away from the kitchen for a moment. I know that is a pretty exciting project, but there are other things going on. Like tax and RRSP season. I know, it sounds so lame! When did this happen that we have to be worried about RRSP's?! I guess around the same time I started not checking the price of groceries.
So, because I am an avoider of many things, I have not bought any RRSP's up till now (one of the many benefits of Jake is that there is a strong motivation for us to be smart with money for the crazy projects we are taking on.). There is a chunk of money begging to make more money, especially because you get a significant tax return because of it.
We have a financial guy, who is really great. He is trustworthy and smart and kind. Very important for someone like me who avoided filing taxes for 3 years. (Yes, I really did do that. You are not alone) He is very good at presenting the options and letting us choose.
Here is the rub: conventional investing means my little 99% money goes directly into the 1%'s pockets, where they make it grow. I just do not know how I feel about that. Actually, that is a lie. I hate that. The more I think about it, the more it rubs me the exact wrong way.
I know that in a world of globalism, it is hard to be socially responsible with how you spend your money all the time. The clothes we buy are made in sweatshops. The computer I'm typing this on was put together by a person in China who probably will never see one of these run. It isn't fair that I have so much and someone else has so little. Even worse, I BENEFIT from their poverty, because it makes the goods I want to buy cheaper. Gah, it makes me sick just thinking about it.
In daily life I try, at least a little. I buy local when I can, and try to avoid ridiculously-out-of-season food. We shop at DeLuca's and FoodFare and have moved as much banking as we can right now to a credit union. In our renovation we are looking to hire a smaller family-run business to do the kitchen.
Is there more I can and should do? ABSOLUTELY. I'm trying to strike a balance between sanity and social responsibility.
Back to the investments. Our financial guy offers 'Ethical Investments', which is a portfolio presumably based on investing in companies that aren't harming people or the environment or society. He also offers your standard portfolio, which invests in companies like Samsung, major Canadian banks, Petroleo Brazil (presumably an oil company), and Suncor, whom we can at least partly thank for the wonder of the oil sands in Alberta.
The rub is that ethical investments typically do not perform as well as the conventional kind. And so here we are.
Advice? What do you people do? Recommendations for solid, socially responsible investing?
So, because I am an avoider of many things, I have not bought any RRSP's up till now (one of the many benefits of Jake is that there is a strong motivation for us to be smart with money for the crazy projects we are taking on.). There is a chunk of money begging to make more money, especially because you get a significant tax return because of it.
We have a financial guy, who is really great. He is trustworthy and smart and kind. Very important for someone like me who avoided filing taxes for 3 years. (Yes, I really did do that. You are not alone) He is very good at presenting the options and letting us choose.
Here is the rub: conventional investing means my little 99% money goes directly into the 1%'s pockets, where they make it grow. I just do not know how I feel about that. Actually, that is a lie. I hate that. The more I think about it, the more it rubs me the exact wrong way.
I know that in a world of globalism, it is hard to be socially responsible with how you spend your money all the time. The clothes we buy are made in sweatshops. The computer I'm typing this on was put together by a person in China who probably will never see one of these run. It isn't fair that I have so much and someone else has so little. Even worse, I BENEFIT from their poverty, because it makes the goods I want to buy cheaper. Gah, it makes me sick just thinking about it.
In daily life I try, at least a little. I buy local when I can, and try to avoid ridiculously-out-of-season food. We shop at DeLuca's and FoodFare and have moved as much banking as we can right now to a credit union. In our renovation we are looking to hire a smaller family-run business to do the kitchen.
Is there more I can and should do? ABSOLUTELY. I'm trying to strike a balance between sanity and social responsibility.
Back to the investments. Our financial guy offers 'Ethical Investments', which is a portfolio presumably based on investing in companies that aren't harming people or the environment or society. He also offers your standard portfolio, which invests in companies like Samsung, major Canadian banks, Petroleo Brazil (presumably an oil company), and Suncor, whom we can at least partly thank for the wonder of the oil sands in Alberta.
The rub is that ethical investments typically do not perform as well as the conventional kind. And so here we are.
Advice? What do you people do? Recommendations for solid, socially responsible investing?
If you have term deposits (i.e. GICs) with your credit union, chances are good that the money is going to help local communities and organizations. If those term deposits are in a TFSA, so much the better.
ReplyDeleteFor long term investments, I have a portfolio that's 80/20 ethical funds/regular funds. Because you're right, they don't perform super stellar, but they do perform well over time.
Not helpful, but that's my two cents. Talk to your guy again, or get a second opinion (I have some recommendations on that count... ;) )
Take a VERY close look at the companies within the ethical funds though. It's all the same...Suncor (Alberta Oilsands), Telus, banks, ...
ReplyDeleteSeems that the rules to be considered 'ethical' are pretty lenient? I'm a little skeptical though like the concept.
Let me know if you find anything hopeful.
AK
I know! I was looking at the 'ethical' portfolio and it is pretty much the same as the regular portfolio! INCLUDING SUNCOR! WTF!
ReplyDeleteI want to invest in the people who grant micro-loans to women in developing countries. Where are those investments!?