Reflecting Anabaptist Values in our Investing

Glen Kauffman has been a long
time friend and financial advisor.

Some years ago Alma Jean and I decided to transfer as much of our retirement savings in Community Investment Notes as possible. These are low interest loans to organizations that promote such things as agricultural development,  alternative energy projects, and microlending to deserving people around the world. Glen Kauffman. a financial planner with Everence Financial, was very helpful to us in setting up this kind of alternative to our Mammon-driven stock market economy. 

While the interest earned is little more than what is needed to keep up with inflation, we see this as a way of having our money work for us in ways that really matter.

Glen presented the following as a part of a November 15 panel on "Rebirth of Anabaptism: Just, Joyful and Sustainable Living." 

 Reflecting Anabaptist Values in our Investing

I’m glad for the opportunity to share my thoughts about ways we can reflect our Anabaptist values in the ways we invest. 

Before I jump into this topic, I want to take a minute to share some thoughts from Everence stewardship theologian Lynn Miller. Years ago, Lynn wrote a book entitled “The Power o Enough” in which he encourages contentment as a way to be faithful. He asks, "Are we able (and willing) to live contentedly with the resources that free us to be who God has created us to be and what God has created us to do?"

I like his approach. It keeps me focused on what is necessary to fulfill God’s will for my life, rather than adjusting my standard of living based on what is available (if my income increases) or what someone ays that I need to be happy or satisfied.

Let’s talk about how our values can impact the ways we invest. I don’t intend for my comments to be prescriptive but rather invite each of you to determine for yourselves how to implement these ideas in your financial planning. I will share 3 different approaches for you to consider.

The first option would be to use socially responsible mutual funds. These funds have developed social screens that they use when investing for their shareholders. Here are the core values some such funds use when making investment decisions:

• Respect the dignity and value of all persons

• Build a world at peace and free from violence

• Demonstrate a concern for justice in a global society

• Exhibit responsible management practices

• Support and involve communities

• Practice environmental stewardship

This option is relatively easy to access and doesn’t require a large investment.

The second possibility would be accessing a fee-based managed account where you grant the manager discretion to invest the money in the account according to your objectives and risk tolerance. These accounts often provide broader diversification and allow the manager access to mutual funds, ETFs, and individual stocks / bonds. This option gives the manager greater flexibility to incorporate your values. Managed Accounts can include some personalization depending upon the capability of the portfolio manager. I will simply share some of the focused types of portfolios that are available:

• "Green" focused portfolios for investors interested in the environment

• Peace or justice focused portfolios

• Traditional values focused portfolios to name a few example types of these focused investment options

Managed accounts often require a larger minimum investment to open an account.

There is a third option for persons who desire strongly that their investments have maximum impact and wish to assist non-profit organizations. There are organizations for instance that offer community investment notes. These notes pay a fixed rate of return for 1-5 years and give individuals the ability to select an impact sector if they wish to focus their investment. The impact sectors include Affordable Housing, Education, Community Development, Microfinance, and Sustainable Agriculture.

All investing involves risk, and this type of focused investing is called ESG investing. It does involve the exclusion of certain securities for non-financial reasons as I have noted. This may result in an investor forgoing some market opportunities that may have been available to those not focusing on such criteria. There is no guarantee that any investment goal will be met. All investors should consider the investment objectives, risks, charges and expenses of the investments carefully before investing. If investing in funds, the prospectus contains this and other information about the funds. 

Contact your financial professional to obtain a prospectus first if you find one that interests you, Then you should be read it carefully before investing or sending money.

I will be glad to provide additional information on any of these types of investments or others to persons who are interested in having a conversation or have questions.

Now because of my profession, my compliance has some things I have to say to be here today:

I offer Securities through Cetera Wealth Services, LLC, member FINRA/SIPC. My advisory services are offered through Cetera Investment Advisers LLC, a registered investment adviser. Cetera is under separate ownership from any other named entity. My office is located at 841 Mt. Clinton Pike Suite A in Harrisonburg, VA 22802 if any of you want to visit.