Knowing what you own is the first step toward knowing whether your investments reflect what you believe.
Many investors know the approximate value of their retirement accounts or investment portfolios. They may know how their accounts have performed over the past year and whether they are on track toward their financial goals. But there is another question that can be just as important:
Do you know what you actually own?
Awareness is the starting point for faith-based investing. Before we can determine whether our investments align with our convictions, we need to understand where our money is invested and what those investments represent.
The first step is not necessarily deciding what to buy or sell. It is taking the time to look beneath the surface. What companies are represented in your funds? What industries do they operate in? What values or practices are associated with the organizations your investments support?
This does not mean that every investment decision will have a simple answer. Faith-based investing can involve difficult questions and areas where reasonable people may disagree. But without awareness, we cannot even begin the conversation.
Awareness begins with self-reflection. Financial decisions can easily be influenced by the culture around us, particularly when money becomes a measure of success or security. There is the potential for money itself to become an idol, making awareness of our own motivations just as important as understanding our investments.
For believers, awareness therefore involves two questions: What do I own, and why do I own it?
The goal is not perfection. It is intentionality.
Understanding your investments gives you the opportunity to determine whether they are consistent with your goals, your values, and your faith.
Faith-based investing begins with a simple willingness to look more closely.
Before asking, “How much did I make?” consider asking, “What am I supporting with what God has entrusted to me?"
Faith Driven Investing (FDI) has certain risks based on the fact that the criteria excludes securities of certain issuers for non-financial reasons and, therefore, investors may forgo some market opportunities and the universe of investments available will be smaller