Saturday, Apr 19

Welcome to Your Daily Dot where Dot will share tips, advice, and stories on how we can make our world better.

With many of us riding the stock market roller coaster at the moment, it seemed a good time to revisit this Dear Dot from the archives. Why not reconsider your investments and place your bets on Mother Earth?

Dear Dot,

Does Dot know anything about responsible investing for 401(k) plans? I was looking at mine last night and realized I have an aggressive portfolio and know nothing about the companies.

—Ali

Dear Ali,

While Dot tends to glaze over at any talk of investments, I do value your questions because it’s one that many of us — including me — should consider. After all, over a third of the American workforce has a 401(k)-style retirement account. And so I will do my best to steer you and your (potential) fortune toward environmentally responsible and fiscally sound waters. 

Let’s dive in: While financial managers are getting better at investing in socially responsible funds, investment accounts are still heavily polluted with stocks in companies that have poor environmental track records. 

As far as environmentally wise retirement funds go, 401(k)s are a bit tricky, because these plans are controlled by employers, many of whom are hesitant to invest in Environmental, Social, and Governance (ESG) funds. It’s not that they’re bad people, but rather that they take their fiduciary responsibilities seriously, and there’s a widespread belief that ESG funds are riskier than ordinary funds (whose more reliable earnings may come at a cost to the world).  

In 2018, the Department of Labor advised that financial planners should forgo ESG funds for opportunities with a proven return record, but it has since switched course and endorsed climate and social considerations for fiduciaries (though the website notes that current policies might have changed). And with good reason: A number of studies, including a 2021 report<> by BlackRock, have found that portfolios divested from fossil fuels have fared as well or better than traditional portfolios. 

While Dot isn’t licensed to give you investment advice, there’s plenty of reason you might want to read on to figure out how your hard-earned money can support your values.

Paid Advertisement with Money

Surprise vet bills can certainly bite. But fear not, pet insurance can be your lifeline. Some plans cover major surgeries — which can cost up to $7,000 — so you can afford the best care for your pet. Check out our top-rated pet insurance providers, with some plans offering coverage for just $1 a day, multi-pet coverage, and reimbursement options of up to 90%. With the right coverage, you could keep your pet (and your wallet) happy.

Paid Advertisement with 1440 Media

I don’t watch traditional news channels and haven’t in years. They don’t report the news but create it. I was tired of not being in the know and then I found 1440. Finally, an unbiased news source! All your news. None of the bias. Our daily email newsletter is edited to be as unbiased as humanly possible and is triple-checked (by hand!). You'll get news on politics, business, sports, science, and beyond.