Investing Responsibly with SRI

Earlier today, on MomsMakingaMillion radio, I discussed the topic of socially responsible investing.  I have written about this topic numerous times and will continue to do so as the effort to invest where the right thing is being done continues to expand.  Once it was all about ethics and morality.  Now it is including shareholder advocacy and community involvement.

Here is a transcript of the interview I had with Kat Bellucci.

Kat Bellucci: A lot of us have become very aware about what we eat, what we buy and what kind of a footprint we leave. And then, when we invest our money, we often don’t consider that the companies we are buying in our mutual funds might be the very businesses we would avoid in the marketplace.

Well ladies, its time to take a look at taking your investments down a path that suits your concerns about the world around and the world your children will inherit?

Paul Petillo: Most investors are narrowly focused.  They want to make money.  But some investors want to make money without destroying the environment, without violating their personal values and possibly even helping others in the process.

While these types of investments have been around for decades, the cost of doing this sort of investment was not always cheap.  The sorts of investments first came across my radar when my daughter, a free spirit who was interested in investing asked me: “are there any mutual funds that are ethical?”

What she was really asking was whether the companies that the mutual funds invested in were screened for more than just performance.  While we would like to believe that all mutual funds are ethical; what about the companies they invest in?

Kat: So what describes ethical?

Read the full interview here at Target2025.com

Boomers in Business

Many Baby Boomers find themselves in a position to start a business or grow their business from a solo effort to one where employess are involved. Without ever losing your focus on retirement, there are steps that can be taken to make sure that you are paid first.

This week on MomsMakingaMillion Radio, the last in the three part series on small business retirement plans is discussed with Paul Petillo, managing editor for BlueCollarDollar.com and Target2025.com.

Kat: Today we discuss the SIMPLE IRA for small business in the last of our three part series with Paul on small business retirement plans.  Tell us just what simple is.

Paul: The SIMPLE IRA, named because those letters stand for Savings Incentive Match PLans for Employees, are a much cheaper and far less complicated way for small employers to establish and administer than a traditional 401(k).

This type of plan is indeed easier to manage and implement but there are a few rules you need to keep in mind before choosing a SIMPLE IRA plan for you and your employees. You are required to make a contribution for every worker who receives $5,000 or more in compensation. It doesn't have to be a lot but it has to be something up to but not exceeding $11,500 for the calendar year 2010.  After that, it will be adjusted upward based on the Cost of Living.

Kat: You said the small business owner is required to make a contribution? Listen to the whole interview here.