Investing has come a long way over the years. We've gone from buying stocks of publicly traded companies to being a shareholder of mutual fund companies and then on to owning a more tax-efficient investment in the form of an exchange traded fund (ETF).
Most people are investors (whether they realize it or not) through their employer retirement plans. What is lacking in all of this money invested in our capital markets is public awareness - ie - education on how and where your money actually gets invested.
Have you ever put much thought into your investments? Have you factored in the environmental, social and governance aspects of the companies you own in your investment portfolio? Are there legitimate reasons or causes for how your capital is allocated? If you can't answer yes to this, you may want to re-think how you invest.
Fortunately for us and our clients, there is now a way to put your money where your mouth is when it comes to investing!
We take our clients through a process that allows them to invest in their values - whether it be quality education, human dignity and opportunity for all, enivronmental responsibility, family and children, constitutional freedoms, and many more!
We can build bespoke investment portfolios for our clients that align with the things they really care about and are important to them and we can also screen out companies they don't support that are misaligned with their values.
We do this through a process called direct indexing.
Direct indexing is an investment strategy where individual stocks that make up an index are held directly in your account instead of through a mutual fund or ETF.
Exclude companies from your portfolio based on ESG issues such as tobacco, fossil fuels, private prisons, and more. Include specific companies that align with your values whether it be religious, social justice, climate change and more.
All capital losses are immediately available to offset any capital gains. Improve your after-tax returns by having the flexibility to push capital gains into future tax years versus being forced to take them through traditional fund distributions. Increase your opportunities to tax loss harvest through the use of individual securities.
Avoid paying an ongoing management fee to a fund company by owning your investments outright.
Vote proxies with the companies you own to enact the changes you want to see with company regulations and management.
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McHenry Capital, LLC is a registered investment adviser in the state of Washington and Texas. The Adviser may not transact business in states where it is not appropriately registered or exempt from registration. Individualized responses to persons that involve either the effecting of transactions in securities or the rendering of personalized investment advice for compensation will not be made without registration or exemption.
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