For many, early retirement is about reclaiming time to live in accordance with their values. It makes sense, then, to ensure that the wealth funding your freedom is generated ethically. Socially Responsible Investing (SRI) and ESG criteria allow you to do exactly that.
ESG investing screens out companies involved in controversial sectors like weapons, tobacco, or fossil fuels, while promoting companies with strong environmental records, fair labor standards, and transparent governance. Today, broad ESG index funds make it simple to build a diversified portfolio.
A common myth is that ESG investing requires sacrificing returns. Historically, ESG indices have performed comparably to, and sometimes outperformed, traditional market indices. Evaluate ESG fund expense ratios and holdings to build a portfolio you can be proud to hold decades into retirement.