Are you looking for ways to grow your wealth while supporting causes that truly matter to you? It’s common for many retirees to explore opportunities to use their assets to create a meaningful and lasting impact.
This is where impact investing in retirement plays a vital role. Far from being just a trendy term, it empowers you to choose investments that reflect your personal convictions.
As interest in values-based investing continues to rise, so does the need for reliable information and guidance. Investors nearing or in retirement want to know if it’s genuinely possible to make socially responsible choices without sacrificing long-term financial security.
This blog from PAX Financial Group, a San Antonio fiduciary firm, examines key concepts behind impact investing, highlights practical strategies, and offers insight into how you can pursue purpose and stability at the same time.
What Is Impact Investing and Why Does It Matter in Retirement?
At its core, impact investing refers to choosing investments that aim to produce measurable positive outcomes alongside financial returns. These investments may support areas like renewable energy, clean water, education, or affordable housing.
Also, some view Biblically Responsible Investing (BRI) as a faith-based approach that allows Christians to match their investments with biblical values while seeking financial growth through wise stewardship.
For retirees, the appeal is clear:
- You may want your portfolio to reflect the causes you’ve backed for years.
- You might be thinking about the legacy you leave behind for your children or community.
- You may simply prefer not to profit from industries that don’t match your personal principles.
There may also be opportunities to strengthen San Antonio’s community through targeted investments that fund various initiatives. However, not all investments marketed as “impactful” are created equal.
That’s why it’s helpful to work with a financial advisor in San Antonio who understands both your financial needs and the values driving your investment preferences.
The Role of a Financial Advisor in Impact Investing
Incorporating impact investing into retirement planning isn’t always straightforward, and it can be difficult to know where to begin. Working with an advisor becomes especially useful, particularly one with a fiduciary commitment to act in your best interest, like those with PAX Financial.
Here’s how an advisor assists in this process:
- Clarifying your values: The first step is to discuss the causes or issues you want to support—or avoid—through your portfolio.
- Evaluating BRI investments: Your advisor can identify mutual funds, ETFs, or individual securities that meet defined Biblically Responsible Investing standards.
- Balancing your portfolio: While personal values are crucial, so are diversification, risk tolerance, and income needs. A well-rounded strategy accounts for all of these.
- Monitoring and adjusting: As market conditions shift or your priorities change, your advisor can help refine the investment mix to keep everything on track.
It’s also important to be realistic. Impact investments—like all investments—carry risk. They don’t guarantee higher returns or reduced volatility. The goal is to align your money with your values while maintaining financial stability. At PAX, this balance is central to how we serve retirees in San Antonio, Texas, and throughout the US.
Strategies for Impact Investing in Retirement
Once your goals are clear, your advisor can begin designing a plan that integrates values-based investing into your portfolio. Here are strategies used for those interested in impact investing:
1. ETFs
One of the most accessible ways to engage in values-based investing is through diversified ETFs that emphasize strong BRI criteria. These may screen out industries or companies that conflict with your principles while prioritizing those that promote sustainability or ethical business practices.
2. Managing Risk in Retirement
Retirement planning requires careful attention to risk. A seasoned advisor will evaluate how BRI positions fit within your broader portfolio and adjust allocations for stability and income needs. The objective isn’t just about impact—it’s also about preserving the resources you’ve worked hard to build.
3. Shareholder Advocacy
Values-based investors may take a more active role by investing in companies and engaging them through shareholder voting. This can provide a means to influence corporate behavior on significant social or environmental issues.
4. Tax-Efficient Giving
There are also ways to make an impact through charitable giving. Strategies such as donor-advised funds or qualified charitable distributions (QCDs) from IRAs enable you to donate to causes while reducing your taxable income. A financial advisor can help determine when and how these tools fit into your plan.
5. Community Investments in San Antonio
Some retirees prefer to make an impact closer to home. Community investing may involve supporting affordable housing, small business development, or local nonprofit organizations. It’s wise to discuss these opportunities with experienced advisors who can identify vetted options that reflect your interest in uplifting the San Antonio area.
Again, each of these options carries its own risks and benefits. With guidance from a knowledgeable advisor, your portfolio can align with your values while still being positioned for growth that effective retirement planning in San Antonio requires.
Why Choose PAX Financial Group for Impact Investing
Choosing the right partner for impact investing in retirement starts with finding a team that understands both your values and your financial goals. At PAX Financial Group, we offer that balance.
Our San Antonio financial advisors bring over 100 years of combined experience. As fiduciaries, we are committed to acting in your best interest—whether recommending ETFs, local community investments, or charitable giving strategies.
We take the time to understand your complete financial situation—income needs, risk tolerance, and long-term priorities—so we can help you explore values-based investments in a way that fits your retirement goals.
The PAX team includes CERTIFIED FINANCIAL PLANNER™ professionals and Accredited Investment Fiduciaries®, working collaboratively to design strategies rooted in Judeo-Christian principles.
Interested in incorporating impact investing into your retirement plan?
Contact us today for a complimentary consultation, or visit our website to learn more.
