Help my money be responsible
May 14, 2015 7:58 AM Subscribe
How can I make my personal finances as green and as socially responsible as possible? (Other than by donating to causes.)
Like, I'd like to close my account with Big Bank(TM) and open one with a credit union or Amalgamated. And I'd like to divest from fossil fuels in my retirement accounts. Can anyone recommend banks, mutual funds, or other products or strategies?
Bonus question: my Big Bank(TM) account is my oldest open account, creditwise. Will closing it hurt my credit score?
Like, I'd like to close my account with Big Bank(TM) and open one with a credit union or Amalgamated. And I'd like to divest from fossil fuels in my retirement accounts. Can anyone recommend banks, mutual funds, or other products or strategies?
Bonus question: my Big Bank(TM) account is my oldest open account, creditwise. Will closing it hurt my credit score?
Not to pimp any particular investment firm, but I use a non-profit for mine. It has the benefits of them being socially active, and I get "bonus dollars" that I can allocate out. I get comparable returns as with Edward Jones or such, and I get the same services, but I get to help along a company that helps others along.
posted by cjorgensen at 8:40 AM on May 14, 2015
posted by cjorgensen at 8:40 AM on May 14, 2015
Since you mentioned divesting from fossil fuels, I'll note that the effectiveness of that strategy is somewhat questionable. Point 1 here is a good explainer of the reasons why; you're creating an opportunity for someone with fewer scruples to buy the shares at a lower price. If they do so (and there's no reason to believe they won't, there are tens of thousands of people whose entire job is identifying underpriced securities), the price is bid back up and the company's financial position is unchanged.
I would suggest that lobbying for regulatory reform is a better use of time than divestment, especially divestment in large publicly traded markets.
posted by ripley_ at 12:51 PM on May 14, 2015 [1 favorite]
I would suggest that lobbying for regulatory reform is a better use of time than divestment, especially divestment in large publicly traded markets.
posted by ripley_ at 12:51 PM on May 14, 2015 [1 favorite]
We use Urban Partnership Bank for our savings/money market accounts (with a Big Bank account for checking that has lots of ATMs, but transfer extra money over to UPB pretty quick) and Domini for mutual funds for retirement.
You should shop around the various SRI options (there are tons! socialfunds.com is a good resource) and look both at their policies and their fees (expenses/load)-- but one thing to note is that some of the really low-fee ones don't do any proxy voting (i.e. voting your shares on resolutions that push for socially responsible positions by companies), which to me is probably equally important (as far as chances of actually making change) than where they're invested, if not more so.
posted by EmilyClimbs at 1:46 PM on May 14, 2015
You should shop around the various SRI options (there are tons! socialfunds.com is a good resource) and look both at their policies and their fees (expenses/load)-- but one thing to note is that some of the really low-fee ones don't do any proxy voting (i.e. voting your shares on resolutions that push for socially responsible positions by companies), which to me is probably equally important (as far as chances of actually making change) than where they're invested, if not more so.
posted by EmilyClimbs at 1:46 PM on May 14, 2015
Check your MeMail.
posted by aka burlap at 3:21 PM on May 14, 2015
posted by aka burlap at 3:21 PM on May 14, 2015
This thread is closed to new comments.
posted by melissasaurus at 8:26 AM on May 14, 2015 [1 favorite]