As an impact investing advisor, I worked with some of the wealthiest families and the largest foundations on how they could use their resources to make a difference. This kind of service is available to those who have means, but I believe it is something that everyone should be able to take part in and understand. I worked with wonderful clients who sincerely wanted to make the world a better place, but I also felt that it was not fair to only serve one part of the population. I believe having access to information and resources to know how to manage your finances is a human right that should be available to everyone. If we seek equality, we have to change the system so that we all have the same opportunities.
Within the current system, you can hire someone to oversee your finances as well as your investments. There are financial planners as well as wealth managers who focus on both planning and investing. The more resources you have usually dictates the service you are able to receive. You will likely even pay a lower percentage fee than someone with less resources. Though the more you have, the more difficult things can become because there are many different advisors involved and many people trying to sell to you. This means that those who have lesser means are suffering from lack of service and information, and those with substantial means are suffering from too much information-and maybe not the right information.
For too long we have operated within this structure where financial advisors are incentivized to work with higher net-worth clients because they will get paid more. Of course, there are complexities that occur when dealing with higher net-worth individuals, but it has perpetuated a system of only serving a small portion of the population. I believe Robo-advisors and similar platforms play an important role in providing planning and investment services. These options are a step forward towards closing the gap but they are not enough. If we want a just and inclusive society, we need a system that is just and inclusive. We also need to take solicitation out of the equation and have a safe place for people to go to get the answers they need. When you have different people selling to you it gets confusing to know who to trust and what information is correct. This is how the financial industry operates and it doesn’t work.
GIVE is an educational community that makes financial management, giving, and sustainable investing accessible to all through online courses and a soon to be published book. Learn more at www.give.how.
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