Making An Impact With Your Money
John C. Brandy, CFEd®
Have you ever thought about a way to invest that focuses on making an impact in some area you care about?
Have you ever been interested in companies just getting started with their "Initial Public Offering", or IPO?
Definition of Impact Investing
The idea is almost obvious. Doing well by doing good. Not everyone puts the same priority on this, and there are a few different ways to do it if you are interested.
One way is through a fairly well-known robo-advisor called Motif.Com.
In another upcoming article I'll get more in depth about other so-called "robo-advisors", but there's some pretty good ones and they're here to stay, despite what some financial professionals would like.
What Does Motif Do?
Motif is an automated trading platform in which
you can choose to focus on one or more specific
"Motifs", hence the name, where a "Motif" is
built from stocks having a common theme, like
"Big Data" or "Housing Recovery".
Why Is That Good?
It's good because it means you can have a portion of your portfolio in areas that match your personal beliefs. It's wonderful because it directs others to causes you'd like to say (and know) you can support. Should this be a significant part of your portfolio?
By now you probably know the answer is "no" (though in this case it's better than never). Everything in moderation, so this probably shouldn't make up the majority of your holdings, and maybe as low as 5%.
It's also good because the cost is small. Motif charges you $9.95 per trade. That's it.
Would You Do This With Your Money?
Yes. I do in fact. Here's a screenshot
of part of my portfolio with Motif. In
case you haven't heard, I put my money
where my mouth is. I wouldn't suggest
you do something if I wouldn't do it myself.
Do They Do Anything Else?
Well, yes, since you ask.
Customers often ask about "IPOs" or Initial Public Offerings. This is when a company has not previously been "out there" for public trading. Investments in companies prior to the IPO are typically friends, family, and other employees. Only at or after the IPO do you and me get to play, and only rarely during. Motif offers some of these, which is great news if you're interested in them.
Typically, they are very hard to get and also very risky. Here's an example of some of the offerings they have as of the end of October 2017. They will specifically change, but the idea remains the same.
OK, But How Am I Supposed To Pick A Portfolio? And How Often Do I Change it?
You don't have to worry about this. You're not alone. I have 15 years experience managing portfolios and I am happy to assist showing you how to do it. We'll share computer screens so we can walk step-by-step together through all of the choices you have, why I recommend certain ones for you, and what the big picture looks like. I've put my own money into a few of their portfolios, and I review that a few times a year. Like everything else I recommend, I put my money where my mouth is.
You don't change it. At least, that's my advice to save you both stress and money. When I review your portfolio, I'll tell you what if any changes are needed and we can discuss what you'd prefer. Then I'll help you if you'd like me to.
Step One: Click The Free Call Button
If you want to talk through this idea or any others, the above button lets you pick a complementary FREE call one-time without signing up for anything. If you know you want to get started faster, you can click OMG Sign Up which will take you to the different packages we offer.
Step Two: Start OMG Consulting If That Fits, And Open A Motif Account
You can be confident that the help you need and the privacy you deserve is right here. Better still, it's more affordable than you may have heard. We're talking about a flat subscription fee for year that's equal to a single buy and sell of $20,000 at a brokerage firm.
Then, there's the Motif account. You'll open this at http://www.motif.com, with my help if you'd like it.
We absolutely should talk about that before you open it, because it's important to decide if you want it to be an IRA or not. They can do that if it's right for you.
Step Three: Link It To Wealth Access (If You Want Me To Help)
To best help, what we do is ask you to link your accounts in a place where we can see them. We can't change a single thing and it's backed by 256-bit security, the highest currently available.
It's not required that you do this just to have Motif, or any one other choice. If you'd like advice on what to do next and why, that's where we, and Wealth Access, come in.
You're welcome to do that on your own if you'd like. OMG makes sense if you want to do this as a part of many other things, like most people.
Step Four: Schedule Time At Your Convenience
There are few things as important as the saying, "the customer is always right". If you want the service at whatever package level, you're entitled to a quarterly reviews. Could be for an hour or more, your call.
Those reviews are when you want to schedule them. It's not about my convenience. It's about yours.
Conclusion: You Want One Of These
Because it helps put you in control. My job is to understand what motivates you and meet that need while diversifying to manage your risk.
Make no mistake: this should not be a large part of your portfolio. Together we paint a picture for you and your family and help you do things you didn't think you could do.
If you have any questions, feel free to reach out to me at email@example.com.
About the Author
John Brandy is a Certified Financial Educator (CFEd®) and a financial consultant who helps you achieve your retirement goals. He is an expert in investing using this platform. Contact John if you have any questions about using regular or retirement funds this way. He is happy to talk with you to discuss your investing goals.