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The Southern Company employees looking to align their investment portfolios with their values should consider ESG & Impact Investing. When such strategies become commonplace, they may be a way to marry personal convictions with financial goals. Consult with a financial advisor such as myself, Patrick Ray at The Retirement Group, to ensure these choices reflect your ethical standards and financial objectives.
The Southern Company employees looking for socially responsible investment options need to understand SRI, ESG and Impact Investing, 'said Navarro. These support ethical, environmental and social causes and also yield competitive returns. 'I, Michael Corgiat of The Retirement Group, would recommend talking with a financial advisor about creating an investment strategy that fits your needs and goals for your money.'
In this article we will discuss:
The Rise of Responsible Investment Strategies: Exploring how Socially Responsible Investing / Impact Investing and ESG / Environmental, Social & Governance Investing have become mainstream choices for The Southern Company investors. SRI, ESG and Impact Investing Comparative Analysis. Outlining similarities and differences among these strategies so investors can make an educated decision.
Strategic Investment Decisions: Important points discussed include how to align investment decisions with personal and ethical values and the role of financial advice in these decisions.
Many of the The Southern Company are building a portfolio that reflects their socially responsible values but provides good yields. And that is where SRI Investing, Impact Investing and ESG Investing can help.
Some former The Southern Company investors found the strategies too restrictive. Eventually though, better evaluative data and competitive returns made such strategies commonplace. SRI, ESG Investing and Impact investing have many similarities but differ in some fundamental ways. Read more.
ESG Investing - Environmental, Social & Governance Investing.
ESG investing means environmental, social and governance Investing. This model scores investments against certain standards like ethical business practice, environmental conservation and local community impact. ESG investing has become popular: more than 500 ESG mutual funds and exchange-traded funds (ETFs) exist in the US alone. A decade ago there were just 100 ESG funds.
SRI = Socially Responsible Investing.
SRI uses criteria from ESG investing to actively eliminate or select investments according to ethical guidelines. SRI investors can apply negative or positive screens when choosing how to build their portfolio based on ESG factors. For example, The Southern Company investors might invest some of their portfolio in companies that support charities. In the US alone, more than USD 17 trillion is invested using SRI strategies. This is up from USD 12 trillion invested in SRIs as of December 2017.
Impact Investing
Impact investing is also called thematic investing. Impact investing seeks to secure a positive outcome independent of profit. For example, an impact investor may use ESG criteria to find and invest in a company working on a cancer cure regardless of the investment result.
Articles you may find interesting:
- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
The biggest takeaway? You can keep your investments in line with your personal beliefs by making choices. Whatever way you structure your investments, remember to consult with a financial professional before making a major change.
Sources:
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Zhou, Michelle. 'ESG, SRI, and Impact Investing: What's the Difference?' Investopedia , 13 Jan. 2025, www.investopedia.com/esg-sri-and-impact-investing-5204786 .
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'The Key Differences between SRI, ESG, and Impact Investing.' PitchBook , www.pitchbook.com/news/articles/the-key-differences-between-sri-esg-and-impact-investing .
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Kelley, Matt. 'ESG Investments – Part One: An Introduction to and History of ESG Investing.' ESL Federal Credit Union , www.esl.org/esg-investments-part-one-an-introduction-to-and-history-of-esg-investing .
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'SRI vs. ESG vs. Impact Investing: What's the Difference?' Fidelity Investments Canada , www.fidelity.ca/sri-vs-esg-vs-impact-investing-whats-the-difference .
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'Understanding ESG, SRI, and Impact Investing.' Financial Planning Association , www.financialplanningassociation.org/understanding-esg-sri-and-impact-investing .
What is the 401(k) plan offered by The Southern Company?
The Southern Company offers a 401(k) plan that allows employees to save for retirement through pre-tax contributions, which can grow tax-deferred until withdrawal.
How can I enroll in The Southern Company's 401(k) plan?
Employees can enroll in The Southern Company's 401(k) plan through the online benefits portal or by contacting the HR department for assistance.
Does The Southern Company match employee contributions to the 401(k) plan?
Yes, The Southern Company provides a matching contribution to employee 401(k) accounts, which helps enhance retirement savings.
What is the maximum contribution limit for The Southern Company's 401(k) plan?
The maximum contribution limit for The Southern Company's 401(k) plan is subject to IRS limits, which are updated annually. Employees should refer to the latest IRS guidelines for specific amounts.
Can I change my contribution percentage to The Southern Company's 401(k) plan?
Yes, employees can change their contribution percentage to The Southern Company's 401(k) plan at any time through the online benefits portal.
What investment options are available in The Southern Company's 401(k) plan?
The Southern Company's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles tailored to different risk tolerances.
When can I access my funds from The Southern Company's 401(k) plan?
Employees can access their funds from The Southern Company's 401(k) plan upon reaching retirement age, or under certain circumstances such as financial hardship or termination of employment.
Does The Southern Company offer financial education regarding the 401(k) plan?
Yes, The Southern Company provides financial education resources and workshops to help employees understand their 401(k) options and make informed investment decisions.
What happens to my 401(k) plan if I leave The Southern Company?
If you leave The Southern Company, you have several options for your 401(k) plan, including rolling it over to another retirement account, leaving it with The Southern Company, or cashing it out (subject to taxes and penalties).
Are there any fees associated with The Southern Company's 401(k) plan?
Yes, The Southern Company’s 401(k) plan may have administrative fees and investment-related expenses, which are disclosed in the plan documents.
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