Socially responsible investing

[earthwalker]

I've been wanting to take my savings out of mutual funds and put them into something more socially responsible. Does anyone have any pointers/suggestions? This might be a terrible time to sell any funds/stocks (but great time to buy) and I am wondering what the smartest/safest way to do this is. Any ideas?? Thanks!

[Donald Reid]

Look at Brazil ... the economy is expanding and there are many socially responsible projects available. Did you see our page and BLOG on Brazils northeast.

Donald

[Donald Reid]

Invest in the worlds hottest emerging market! BRAZIL
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Land prices in Brazil are increasing on average 20% per year, "Timing is everything in emerging Markets" and the time to act is now!
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The Future is BRIGHT, Buy Land In emerging markets "The Future super Economies"
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Question?
what have Global financier George Soros, Microsoft chairman Bill Gates, the owners of Google and former U.S. president Bill Clinton all have in Common.
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George Soros PLUS Bill Gates PLUS Bill Clinton PLUS Google Owners
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Answer! They all have bought land in Brazil. In the current world market land is one of the most solid investments one can make. They are not making any more of it.
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OBS: This is the report - I have not verified this!
DR
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In Brazil foreign investment is encouraged; you own 100% of land and property. Suddenly the whole world seems to be investing in Brazil. Banks, investment funds, international hotel groups and resort developers have all been pouring money into Brazil and now shrewd individuals are following suit, keen to secure their investments before Brazil fully wakes up to its potential and prices rise.
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Friendly people, unbeatable climate, natural beauty and colourful culture have long been central to Brazil's unique offering. Couple this with its expanding infrastructure, political stability and booming economy and it's not difficult to understand why Brazil is
suddenly the word on everyone's lips.
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An Emerging Giant
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by 2050 Brazil is predicted to have grown into one of the worlds largest economies, alongside China, the US, India, Japan and Russia. (source: Goldman Sachs)
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People
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The Brazilians themselves are the country's greatest asset; they are happy, friendly and welcoming to any visitor!
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It is hard to find warmer friendlier people. Brazils mix of races makes it a culturally rich and unique country, one of the last places on earth where no-one is a foreigner, where one can change ones destiny without losing ones identity and where each and every Brazilian has a little of the entire world in his or her blood.
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With 50% of the population under 25 Brazil boasts one of the youngest populations of the emerging nations. The population is 185 million and expected to grow to 250 million by 2050. by which time Brazil is widely expected to be one of the world's 4 biggest economies.
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See our site www.andetur.biz
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Donald
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[Donald Reid]

Jeff, good morning ... I posted this concerning the Amazon because all these areas are of concern. Our present problem at the ONG Association ABTC-BRASIL is trying to raise the US$ 10,000 in 'seed capital' cash to get started. We have the land purchase loan approved from the bank to buy the ranch and the 'caatinga' reserve; and the NGO/ONG Mandallas DHSA has a program of 'grants' (from Bayer Crop Science) to start the initial mandallas. Brazil has a law now that 20% of ranches and land areas must be conserved ... most owners do not have a clue how to do this nor are they really interested ... but these areas can be managed for them by a non-profit such as our ONG. Small investments (and donations) can go long way trying to preserve areas like this. Properly applied most of these investments in ecology offer up to ten years free of any taxes to investors. Our ONG, for example, is offering supporters of an investment fund we are creating up to 5% return on their investment each month. That´s 60% per year. If they apply the interest to their principle account, US$ 1,000 could easily return up to US$ 4,000 in three years.

Donald

[Donald Reid]

How To Invest in Brazil As An Expatriate
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The DOs And DON’Ts of investing in real estate for expatriates
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Published on: Thursday, September 25, 2008
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The expat lifestyle has many benefits, such as traveling, living and working in exotic locations and often better compensation and benefits than that of domestic jobs. The expatriate life may be full of adventure, but one place that investors definitely don't want thrills is in large investments. High earnings allows expat investors more disposable income for investments, but whether saving for a home, planning for retirement or seeking cash-flow from current investments, expat investors face obstacles and needs quite different from those of average investors.
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Facing some of the problems
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The expanded possibilities for ex-pat investors can be overwhelming: Should you invest in a Brazil land share, buy emerging market stocks or purchase a property in your home country?
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Organizing one’s finances while living abroad often requires more brainpower and complex tax strategies may be needed. You may feel like you have fewer options and far less security than you did back home. You may fear that your distance from the property will hinder the proper management or that the mortgage will require a larger down payment or that your separation from the market will cause you to sell low or buy high.
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Financing, property management and market timing are very real concerns that hold completely different implications when the property you purchase is not a quick drive away.
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A Few DOs….
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The easiest solution is to enter a partnership or joint venture agreement with a real estate expert or someone that understands the unique ins-and-outs that expat investors face.
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DO look for an experienced partner that focuses on investors living abroad and who can guide you, not just sell to you. Your tax situation, mortgage qualification abilities and the extra time needed to get documents signed and notarized all need to be taken into account.
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DO find someone with a proven track record. Talk to your partner’s past clients, get referrals and find out how well their investment succeeded.
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DO conduct due diligence on your partner and on the location where you are investing.
What is the area’s economic outlook? Does the investment make sense?
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DO consult with a tax specialist and have a real estate lawyer read over all legal documents. You don’t want any surprises when you invest. This may seem like a boring, overly precautious step, but it is crucial.
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DO Expect updates on your property. You should get a yearly update of how well the investment is doing and whether there were any changes in the market.
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…And DON’Ts
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DON’T slip into the dangerous rut of analysis paralysis. What is your goal for this investment? Is it for retirement or income? Once you have a clear goal list, research several joint venture companies and choose one.
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DON’T purchase on just pretty pictures. Sunsets, ocean views and happy couples dancing in the sand are all great, but who will buy the property after you? Is this an emotional buy or are you investing in real estate to make a profit?
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DON’T micro-manage; let the experts do their jobs. You don’t need to see every receipt for every light bulb that is purchased. Remember, your goal is to free up your time, not have more headaches.
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DON’T let your taxes slide. Expatriate investors sometimes pay higher taxes, sometimes not, than other investors. Go into the deal armed with knowledge of what your real ROI will be.
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DON’T think every deal is a get-rich-quick deal. The fact is real estate is a proven long-term wealth generating investment. If you have the mindset of a day trader, then you’re gambling not investing. Invest for the-long term: a minimum of 3 years and an average of 5 years or longer.
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There is no reason that you can’t have the expat lifestyle and take advantage of real estate markets all around the world. It's essential that you realize your choices are ample, not diminished. Just remember that to be successful you must be aware of your end goal and take action accordingly. The devil is in the details and with proper due diligence your financial dreams are only a few sound investments away.
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[Donald Reid]

Thinking about investing in Brazil? Now is the time ...
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Take advantage of the exchange rate. Since the economic crises stateside, the dollar (US$) has actually increased in value against the Brazilian real (R$). Just a couple of weeks ago the exchange rate was US$ 1.00 = R$ 1.60.
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I changed money this morning at US$ 1.00 = R$ 2.05 ... this evening I see the rate is now US$ 1.00 = R$ 2.20.
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Keep a eye on it -
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http://www.bloomberg.com/markets/currencies/americas_currencies.html
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This is a big difference!
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Donald
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[Donald Reid]

The exchange rate in Brazil this morning is US$ 1.00 = R$ 2.50 ... wow!

Donald

[Jeff]

New fund from Wells Fargo folks in this forum might find interesting.
http://www.socialfunds.com/news/article.cgi/2565.html

and, if you need more validation for socially responsible investing, check this out:http://www.socialfunds.com/news/article.cgi/2567.html

[Jeff]

Here's another that might be of interest

Cleantech Investment Opportunities Expanding

[Patrick]

I don't want to be a self promoter, but I have an article I wrote about investing in Alternative Energy ETFs. ETFs are the same thing as mutual funds as they are spread across many stocks, but they are just publically traded like stocks. This would probably be a great time to get into stocks as they are bottoming out and they can only go up at this point.

[Jeff]

Nice article, Patrick. Please feel free to cross post and keep us informed as to your progress with these investments. I'm certainly going to look further into ETFs.

Best,
Jeff

[Donald Reid]

My Lucrative Long-term Investment Plan for Fortaleza
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Posted by Ronan McMahon in International Living
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Saturday, Nov. 1, 2008
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This week I have already written about why, despite market turmoil, I’m still bullish on Fortaleza and what I consider to be the best way to maximize your return on investment in this market (pre-construction with as little as 0.75% down).
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Today, I’m going to tell you about my strategy for the units I have purchased here. As an investor you need a clearly planned exit strategy and a clear view of who the ultimate end user for your property will be.
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My strategy is as follows. I have taken profits from pre-construction investments in Panama and ring fenced them to use for pre-construction investments in Fortaleza. I’m only interested in low money down deals that are competitively priced and with at least a three-year build period.
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In three to four years my goal is to have accumulated a portfolio of income generating rental properties in the city of Fortaleza. I will continue to buy more units than I expect to ultimately hold on to. This means that I expect to do some flipping along the way to help fund other purchases or the payment of outstanding debt on purchased units. However, at no point will I have to flip to make payments. I’ll have a cushion at all times. Flipping is for replenishing the pot, not paying the bills.
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The best time to flip units will be in the months coming up to completion or when you get the keys. I’ve made sure I’ll have the resources to carry units I buy to this point. Given current interest rates (1% per month) where developers offer financing I will keep my debt levels as low as possible. If I enjoy the levels of capital appreciation I expect my units will be debt free as debt payments will be made from profits on sold units.
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While this developer financing is expensive the high cost of capital is one of the reasons that rental yields can be high. I expect to net 15% yields on completion of the city units I have purchased. A great yield if your unit is debt free...not so exciting if you are paying 1% per month on the outstanding balance on your condo while also repaying the principle.
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The units I have purchased are in prime locations and will have broad rental appeal to business people visiting the city, oil executives, young professionals, holiday makers, and retirees from Southern Brazil, Europe, or North America. While choosing a location with broad appeal I also have to bear in mind that although lots of people would like to rent a 250-square-meter condo right on ocean, the market will be extremely limited and yields much lower than you can command on smaller units.
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The units that I have bought and recommended to Real Estate Trend Alert members also offer the prospect of capital appreciation. We have got in early at pre-release pricing allowing us to pick the best units while paying less than other buyers. They are located in prime areas and the developers have an established track record.
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I expect to see a strong resale market for these units...the same groups that will rent here will also be interested in buying. The same logic applies...you need to aim to appeal to as many market segments as possible.
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Ronan McMahon
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OBS: (Note) Ronan´s investment program can be applied to many plans including Natal or Joao Pessoa. Our Investment Club will be looking at similiar investments in Natal.
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Donald
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[Andrew]

Earthwalker,

The most prudent advice action which you could take is to consult your financial planner about this issue.

There are a wide range of options available to you, and your financial planner is in the most appropriate position to advise as to which is most appropriate to you, both from a social perspective and from a perspective of earning appropriate financial returns.

In terms of your mutual funds, have you considered investing in a Socially Responsible Investment (SRI) fund? Essentially, these are funds which apply a range of social and ethical criteria into the investment selection process, in an attempt to support investments whose impact is socially responsible as well as earning a competitive financial rate of return.

Another option may be Community Investing, in which money is invested with a sponsoring financial institution, who in turn allocate such funds toward projects for communities whose credit needs are not met by the traditional financial system. (See here for details)