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Article Title: Finding Investments You Can Be Proud to Own
Author: Jay Peroni
Category: 
Word Count: 925
Keywords: financial planning, certified financial planner, faith-based values, 
investments, financial investme
Author's Email Address: [email protected]
Article Source: http://www.articlemarketer.com
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This week I was reminded of Jacob's Dream found in Genesis 28.  "When he 
reached a certain place, he stopped for the night because the sun had set. 
Taking one of the stones there, he put it under his head and lay down to sleep. 
  He had a dream in which he saw a stairway resting on the earth, with its top 
reaching to heaven, and the angels of God were ascending and descending on it.  
There above it stood the Lord, and he said: "I am the Lord, the God of your 
father Abraham and the God of Isaac. I will give you and your descendants the 
land on which you are lying."

As I reflected on this passage I was reminded God is always with us. He always 
keeps His promises and will remind us.  We have the choice to make a promise to 
serve and love God in all that we do - finances included.  God is the owner of 
everything and we can either honor Him or not when it comes to where and how we 
handle the money He entrusts to us.

What's more important to you: the size or the source of the profit?

The Parable of the Talents showed us that God cares about getting a return on 
His money, but a bigger question is shouldn't we also care about the source of 
the profit? Over the past fifteen years, I have helped thousands of Christians 
align their faith and finances.  I am still amazed at how upset people are when 
they discover where their hard-earned money is truly going.
 
You probably don't believe this, but if you have any money in five of the 
largest, most widely used mutual funds, your values are probably being 
violated. I extensively studied and examined 5 of the largest equity mutual 
funds (based upon the amount of money invested in the funds) and used software 
to analyze their reported holdings.  I found that on average 58.8% of the 
companies being bought failed one or more faith-based screens. 

Now what is a faith-based screen?  Generally, most Christians will look at the 
following hot-buttons:

Moral issues:

 *Abortion - such as companies engaged in the manufacturing, marketing, and 
licensing of substances used to voluntarily terminate pregnancy. 
 * Homosexuality Activities - such as companies that actively recognize and 
promote homosexuality. 
 * Pornography - such as companies involved in the distribution or production 
of adult-oriented publications, motion pictures, or television programs. 
 * Poor Human Rights - such as companies who have exposure in countries where 
there are poor working conditions, abusive practices, child labor, and 
violations of human rights.
 * Embryonic Stem Cell Research - such as companies involved in using embryonic 
or fetal tissue cells in their research.
 
Social Issues:

Alcohol - such as companies involved in alcohol manufacturing, branding, and 
wholesale distribution.

Anti-family Entertainment - such as companies producing or marketing video, 
print, or live entertainment that is violent, vulgar, or mocking 
Judeo-Christian traditions or beliefs.

Gambling - such as companies involved in the ownership and operation of 
casinos, gaming parlors, racetracks, online betting, or other wagering 
services. 

Poor Environmental Record - such as companies ranked high for environmental 
damage through pollution, toxic emissions, oil or chemical spills, and high 
levels of waste.

Tobacco - such as companies involved in tobacco manufacturing, wholesale 
distribution, and products used for tobacco consumption.

Worse yet, when I examined where the money specifically was going I found that:

 * On average 19.7% of the companies in these mutual funds are involved in 
supporting Planned Parenthood, performing abortions, and/or funding embryonic 
stem cell research!

 * On average 10.3% of the companies in these mutual funds are involved in 
producing, distributing, and/or promoting explicit sexual materials.

 * On average 12.4% of the companies in these mutual funds are involved in 
producing, distributing, and/or promoting anti-family entertainment.

 * On average 56.2% of the companies in these mutual funds are involved in 
offering same-sex benefits, and/or actively sponsoring, promoting, and 
endorsing homosexual activities.

 * On average 1.3% of the companies in these mutual funds are involved in 
tobacco and alcohol production and distribution, and/or gambling.

Source: Evalueator data as of 8-21-09

Investing with purpose

Here is a question to ponder: Would you purposely invest money in companies 
involved in any of the hot-button areas? After taking some time to examine this 
list of hot buttons, what issues, if any, most resonated with you? Are there 
any areas in which you wish to avoid investing in your financial life? If any 
of these issues ignite strong emotional responses, is your passion strong 
enough that you want to do something about it? 

What if I told you that you could have your cake and eat it too?  What if you 
could own companies that were in line with your faith, values, and beliefs and 
still earn attractive rates of return?  This is not only feasible, but 
happening all over the world.
  
No proof exists showing screening your portfolio will harm or help your 
performance.   It simply comes down to picking great companies.  Yes, the 
faith-based screens will eliminate between 20 to 30% of the potential 
investment pool.  However with over 8,000 publicly traded companies, you still 
have plenty of choices.  Will you find companies you are proud to own or keep 
doing business as usual?  The choice is up to you! With choices where your 
401(k), IRA, or other investments go, wouldn't you like to have peace of mind 
knowing your investments reflect your values?

Jay Peroni, CFP, and author of The Faith-Based Millionaire and The Faith-Based 
Investor.  Jay is also the founder of http://www.FaithBasedInvestor.com, a 
faith-based investing newsletter and the founder of 
http://www.ValuesFirstAdvisors.com a firm dedicated to faith-based financial 
planning.
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