The importance of investing in your beliefs

American showman Phineas T. Barnum first recorded the wording of this modern saying in Struggles and Triumphs (1869): ‘Every cloud,’ says the proverb, ‘has a silver lining.’” Thunder clouds, which are usually dark and threatening, can still have a silver gleam of sunlight along one edge—the “silver lining” of the cloud. Today we view this to mean that in every bad situation there is an element of good.

A mother who was diagnosed with terminal cancer refused the abor­tion she was offered, thereby giving the gift of life to her unborn daughter. She told her husband, “If I am going to die, my baby is going to live.” Her husband was quoted after she died as saying, “She knew all too well she didn’t have long to live. So she put her little daughter’s life before her own.”

Your perspective in life reflects how you see the world. You can either choose to see the good in everyone and everything or choose to focus only on the bad. Human nature often chooses to focus solely on the bad in others, ignoring all the good being done. One look at the nightly news will validate my point. How many news stories are uplifting? How many are negative? There is much good and bad occurring daily, but the negative stories grab the majority of the headlines.

Moral Compass

On Wall Street, there is a lot of good investing being done, and when you find good being done, you should go out of your way to support it. It makes good sense for society. It also makes sense to invest in companies that complement your faith. No company is perfect, but there are many companies that support traditional Judeo-Christian values such as hon­esty, compassion, diligence, prudence, and creativity. There are thousands of companies that strive to offer quality products and services at fair prices, support a sustainable and healthy environment, and give generously to charities that benefit the world around us.

If a company exemplifies good corporate behavior and has solid financial prospects, isn’t this a match made in heaven? Faith-based investing targets companies whose business philosophies reflect good values. Finding such companies isn’t al­ways easy, but finding them makes in­vesting interesting and fun. To evaluate a potential investment, it is logical to analyze the moral and social characteristics to ensure they are in line with your faith.

Investing in companies you believe in

Many well-educated, morally and socially conscious investors wind up buying shares of companies whose beliefs and business practices are far removed from their own. Most investors simply haven’t thought about merging their personal beliefs with their investment strategies. Some may not even be aware of where and how their money is invested.

Consider this: When you invest in a company, you own part of that company. Some investors would prefer to separate themselves from their in­vestments, but any shareholder cannot. So what you really need to consider, based on what the company does and how they conduct business, is whether you would feel comfortable being a partial owner of that company.

How you invest or don’t invest your money can be a signifi­cant statement of your beliefs and personal principles. For example, if someone is strongly opposed to gambling or pornography, they could choose to not invest in any company that contrib­utes to those industries. If everyone who opposed those industries sold (or didn’t purchase) shares from those companies, that could potentially send a powerful message. On the flip side, if someone firmly believes in eco-friendly alternative en­ergy sources, they could choose to invest in wind farms rather than big oil (for example) as a way to show their support.

Investing according to your beliefs and convictions can definitely af­fect your rate of return. Whether the effect is positive or negative depends upon the investments you choose and the performance of those invest­ments. But it is entirely possible, and perhaps probable, that at some point you will face a situation where you feel the best return on your investment would come from a company whose practices are absolutely contrary to what you believe. In that case, what do you do? No one but you can answer that question. You must decide for yourself which is more important—your convictions or your potential financial return.

If you’d like to take a closer look at how your money is invested, or if you’d like to start an investment strategy more in tune with your beliefs, speak with a faith-based financial planner or do your own re­search. The answers are there. You have to be willing to look for them.

Faith-Based Investing Mind-Set

If you can invest in a way that stays true to your faith and has a solid return potential, why would you not do so?

Here are a few Faith-Based Mutual Funds to help:

• Ave Maria Mutual Funds1-866-AVE-MARIA – Catholic
• LKCM Aquinas Funds – 1-800-423-6369 – Catholic
• MMA Praxis – 1-800-348-7468 – Mennonite
• New Covenant Funds – 1-877-835-4531 – Presbyterian
• Shepherd Funds – 1-800-416-2053 – Conservative Christian
• Steward Mutual Funds – 1-800-262-6631 – Conservative Christian
• Timothy Plan Funds – 1-800-846-7526 – Conservative