Alternative Investment Options: Impact Investing

This month, we’re talking about investments and how your money can be used in ways that support people and planet.

Most people think that investing means solely putting money into the stock market. But here at Ella Financial Advising, we want to help each of our clients find the best path to align their finances, financial goals, and values. Which, for some people, includes impact investing—a type of alternative investment strategy.

Alternative and impact investments are typically investments outside of the stock market. These strategies often line up with personal values and provide ways to use investments to support both people and planet. We’re not saying that you can’t also make a difference in the stock market—quite the opposite since we make a point of investing in socially responsible companies. But impact investments offer a different way to utilize your money and to support your personal value system.

If, for example, you value protecting the environment and want to combat deforestation, you might consider investing in something like EFM, which uses capital from investments to manage and care for large plots of forest. Several of our clients have elected to invest in this alternative. This company even hosts events for its investors where you can go and see your funds in action. We had clients that went this year and found it incredibly informative.

Or, if you’re interested in supporting farming, you can join some of our other clients and invest in Iroquois Valley Farmland. Your investment buys a plot of organic farmland and gives a local independent farmer access to grow fresh food free of harmful chemicals. You will not only be helping to provide communities with local produce but also building up the soil’s health and conserving the agricultural community.

In addition, we offer resources for working with companies like Seed Commons—which supports grassroots businesses, building up marginalized communities and challenging some of the issues related to inequality. In the same vein, Real People’s Fund helps support BIPOC business owners and addresses systematic failures that leave these businesses unjustly struggling.

If you can’t seem to pick just one, or if you have multiple values you’re interested in investing in, check out groups like Impact Assets. They offer a range of different ways to invest, from environmental conservation, to marginalized communities, to gender equality.

And if you’re struggling to decide, don’t worry. Ella Financial Advising is here to guide you through every step of your investment journey. Clients often get overwhelmed at the sheer number of options available to them or struggle to determine their most important values. We offer the tools you need to find the investment path that’s right for you, both in the stock market and in alternative opportunities.