Social Investing Still Requires Business SENSE
BY HADRIAN SCOTT
Millennials—the generation born between 1980 and 1994—take a different approach to investing than their parents or grandparents.
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study by the Responsible Investing Association found that 58 percent of millennials want their portfolios to produce social impact, meaning they want their money to benefit environmentally friendly companies, social causes, or firms seen as creating social good. For wealth managers, however, this philosophy presents a challenge. “Sometimes, great ideas, those businesses are not profitable, or they don’t make money, or they’re highrisk,” said Derek J. Moffatt, president and financial advisor at Moffatt Financial Strategies, LLC. “So you have to educate clients that the cause is good, but it has to be a good business decision as well to allocate capital to that.” Moffatt Financial Strategies, LLC, based in Fort Worth, Texas, is a comprehensive wealth management firm that assists clients with reaching their financial goals. The does not require a minimum to invest, but Moffatt said he works with clients who need “comprehensive” assistance with everything from investing to estate planning to taxes. Moffatt works with few millennial investors, but his experience with retirees, professionals, and clients struggling with financial literacy have prepared him for the new generation of investors. Financial education, especially, is key, even with older clients, Moffatt said. And while new tools such as the so-called “robo-advisors” may benefit clients, the traditional advisor still serves an important role, helping investors sift
through the overwhelming amount of information they are bombarded with daily. “There’s definitely always going to be independent investors … But there’s always going to be, I think, a market for personalized advice,” Moffatt said. “They would rather someone be the tour guide for them and help them navigate those markets.” Moffatt Financial Strategies, LLC, works to guide every client through financial goal creation, planning, and then implementation. The firm is a fiduciary, meaning clients’ interests come before commissions or profits. Moffatt said he builds authentic client relationships by presenting a realistic wealth picture for investors, and in preparing them for eventual market fluctuations. “I think being conservative, being realistic, knowing unforeseen circumstances will happen,” Moffatt said. “Being surprised by market downturns in Texas is like being surprised by the first 100 degree day … We don’t know when, but we know it’s going to happen.” For more information see: moffattfs.com
