Janine Firpo explains the potential of impact investing and how women can effectively channel their finances for positive change.
Picture a scenario where the gender pay gap was resolved in 1965. A reality where parents haven't had to bear childcare costs for decades, where educators receive higher salaries than lawyers, cervical cancer was eradicated in the 1980s, and the U.S. stands as the happiest nation on the planet.
This isn’t just an idealistic dream; it’s grounded in economic modeling that illustrates a world where women wield equal financial power. This vision fuels the Our Sheconomy initiative led by Janine Firpo, an impact investor and co-founder of Invest for Better.
In a recent discussion, Janine emphasized the significance of the Great Wealth Transfer and the compelling reasons for women to engage in impact investing. She highlighted how every woman, regardless of her financial standing, can start investing in a way that aligns with her values.
Can Impact Investing Match Traditional Returns?
A common myth about impact investing is the belief that one must choose between ethical values and financial gains. Janine addresses this misconception directly.
Interviewer: Many women in their fifties and sixties express concerns about prioritizing impact while nearing retirement. Is it feasible to invest mindfully without compromising financial security?
Janine Firpo: Absolutely. It’s not an all-or-nothing scenario. You can strategically shift some of your assets to options that feel more secure.
For instance, consider your banking choices. I transferred all my funds from large banks to local institutions, which support underserved communities while providing comparable returns. If you’re invested in stocks, you can offset losses against gains or transition from current investments to more values-aligned alternatives that offer similar or superior returns. Additionally, funds in retirement accounts can be moved around without triggering capital gains taxes. There are numerous avenues to align your investments with your principles without sacrificing returns.
Why ESG Remains a Wise Investment Choice
The term “ESG” carries political weight nowadays, but Janine believes that the fundamental rationale for impact investing remains unchanged.
Interviewer: Does the evolving political landscape affect the long-term viability of impact investing?
Janine Firpo: While ESG has become a politically charged term, primarily due to the oil and gas sector, it’s crucial to recognize that it pertains solely to the stock market. At its core, ESG is a risk management approach.
It emphasizes that a company’s success depends on more than just financial performance. As investors, we need insights beyond mere numbers. Significant changes are on the horizon—climate shifts, advancements in AI, and societal changes. Ignoring these factors could jeopardize a company’s long-term success. Although ESG has become a divisive topic, it hasn’t deterred investors from considering the risks these trends pose. It’s fundamentally about smart investing.
Your Money Holds More Potential Than You Realize
Impact investing isn’t reserved for the affluent, nor is it merely a political statement. It represents a practical, evidence-based method to ensure that your investments benefit both your financial goals and societal progress.
Whether you switch your savings to a local bank, evaluate your funds through As You Sow, or participate in the OurSheconomy’s 14-week challenge, every little action contributes to change. The Great Wealth Transfer is not a distant concept; it's already happening. Women who take initiative now will be best positioned to influence future outcomes.
Ready to put Janine’s insights into practice? Join InvestingFixx, a women-only investment club led by experts, where members share ideas and learn together. Your first two sessions are complimentary.
