When most people first come to a financial advisor, they expect the conversation to be all about the dollars and cents of their financial lives. They show up loaded down with tax returns, banks statements, printouts of their 401(k)s and the like. In order to help clients prepare for a financial future that will allow them to live their dreams, an advisor should know each individual’s goals and objectives.
Typically, conversations with clients cover standard topics like retirement plans, tolerance for investment risk, and asset allocation. These necessary and important subjects can be supplemented with a discussion of impact investing.
Impact investing is a hot topic in the investment world these days. According to a recent report from the Global Impact Investing Network, there are currently more than 1,300 organizations managing $502 billion in impact investing assets.
Asking clients how they feel about “impact investing” is a great way to start talking about what their core values are. It may well be that clients will say they would like their money to have a positive impact.