,

5 Common Myths About Faith-Based Investing

There are many myths and misconceptions about faith-based investing, such as it being too risky or not available to everyone. However, the truth is that faith-based investing can be just as safe and reliable as any other form of investing. Faith-based advisory firms are equipped with the resources and information to provide you with the best investment options to align with your faith and values. Below we’ve debunked the 5 most common myths about faith-based investing:

1. FBI is simply a financial boycott designed to punish “evil” companies.
FBI is used as a way to demonstrate a heart of worship that desires to glorify God. Screening investments allow for an objective, rules-based, repeatable methodology to identify the most inspiring, biblically aligned companies in which to invest.

2. I am sacrificing financial opportunities/returns by utilizing faith-based investing.
Faith-based investing does not negatively affect performance. In fact, some reports find that screening investments actually helps improve performance, giving investors larger returns.

3. FBI is difficult and expensive due to the lack of options.
While faith-based investments may require specific research and evaluations, they can be very cost effective. Common impediments are that many people are unaware, aren’t sure how to do it, and are concerned they’ll have to sacrifice return. Less than 1% of all money stewarded by families of faith is aligned with what they believe due to those misconceptions.

4. Faith-based investing is only open to certain religions or denominations.
Faith-based investing is available to anyone looking to manage their finances ethically, no matter their religion or wealth bracket. It’s for anyone who wants to align their investing with their values/faith.

5. All investments must meet certain religious qualifications which can limit diversity and restrict potential gains.
With careful assessment and consideration, faith-based investing can provide a balanced approach that respects an investor’s personal beliefs while still offering solid returns. Investment screening is a great method used to determine the best investment options.

Faith based investing has long been misguided by misinformation and misconceptions, but the truth is that it can be a worthy and profitable venture. Through careful research and wise decisions, faith investors can find a way to practice their beliefs while still effectively managing their investments for maximum return. Faith-based investing is an opportunity for many investors to make responsible decisions without sacrificing their values or principles. If you have questions concerning faith-based investing, or would like to get started, Stonecrop provides skilled advisors to guide you every step of the way. Contact us at info@stonecropadvisors.com for more information.

  • AUTHOR

    Doug MacGray

  • DATE

    February 23, 2023

  • SHARE

Ready to find out how Stonecrop Wealth Advisors can help you?

We’d love to hear about your organization and discuss how our extensive experience advising institutional clients on non-profit investment strategy can help support your mission and objectives.

Related Articles

Advisory services offered through Stonecrop Wealth Advisors, LLC, a Registered Investment Advisor with the U.S. Securities and Exchange Commission. Registration does not imply any level of skill or training.

To see a copy of our SEC form CRS, Customer Relationship Summary, please click here. To see our Form ADV, including our Part 2 Disclosure Brochure, please click here. To see a copy of our Privacy Policy, please click here.

Information presented on this site is for informational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any product or security. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed here.

The information being provided is strictly as a courtesy. When you link to any of the websites provided here, you are leaving this website. We make no representation as to the completeness or accuracy of the information provided at these websites.

© Copyright 2021 Stonecrop Wealth Advisors. All Rights Reserved