Comments on: Trying To Find An ETF I Can Believe In

By: FrugalBabe

FrugalBabe — Wed, 01 Oct 2008 23:19:28 +0000

Lisa,
I agree. But I also think that it’s inevitable that the world is eventually going to have to switch to alternative, sustainable energy, even if the oil industry has to be dragged there kicking and screaming. The fact is, non-renewable resources eventually run out. Since I have more than 30 years before I’ll be able to access my retirement funds, I’m betting that by then, oil won’t be our primary energy source anymore. And I think my investment will be sound, both in supporting something I believe in very strongly, and as a strong investment.

By: Lisa

Lisa — Wed, 01 Oct 2008 23:11:39 +0000

Green Me beat me to the point I wanted to comment to make, but I’ll say it anyway. I think it’s more important to maximize your investment, so that when you need that money, you can afford to continue to be socially responsible in your buying decisions. What good is your IRA if, when you do retire, you’re reduced to eating ramen noodles and Chicken McNuggets? In an ideal world you could do both — invest in your ideal companies AND make great money on your investments. But in the absence of that ideal, I feel it’s better to invest where you can make the most money; I don’t think it’s worth sacrificing your future security for iffy socially responsible investments.

By: laketrout

laketrout — Fri, 15 Aug 2008 01:35:14 +0000

Here’s some more ETFs to ponder:

iShares KLD 400 Social Index Fund (DLS)

Market Vectors Global Alternative Energy ETF (GEX)

PowerShares WilderHill Progressive Energy Portfolio (PUW)

Market Vectors Environmental Services ETF (EVX)

By: Green Me

Green Me — Thu, 07 Aug 2008 21:40:56 +0000

I am no investing expert, but my husband used to watch Kramer every day. One thing that really hit home to me was his suggestion that investing in stocks is the last place one should worry about morals (unless you are already a billionaire). His take is that companies will make money whether Joe Shmoe invests in them or not and that you should invest in a way that makes you the most money. And, that your money and morals are better spent directly funding, spending, supporting things in your day to day existence. In other words, maximize your investments, so that you can afford to give and spend money where it counts.

By: neimanmarxist

neimanmarxist — Thu, 07 Aug 2008 18:04:05 +0000

thanks!!! for the info and the pointers. i’ll be looking around `

By: Randy

Randy — Wed, 06 Aug 2008 18:14:58 +0000

I recently took a look at alternative energy ETFs and funds for a blog article; and to be honest, I came away throughly unimpressed. Why? Either their expense ratios are too high (ideally, it should be less than 1%), or they’ve been performing poorly.

I did find some individual stock picks that I like in the alt-energy space: GE and AMAT are two that spring immediately to mind.

Good luck!
Randy

By: FrugalBabe

FrugalBabe — Wed, 06 Aug 2008 16:59:36 +0000

Thanks Neimanmarxist! Although I don’t think I really know that much at all. I’m always trying to learn more. I’m a health insurance agent, so HSAs are part of my work, and a perfect strategy for my family’s health insurance. About four years ago, I started working at a public library, and discovered the personal finance section (332 in Dewey – it’s like Yellowstone National Park, you can spend weeks there and not see everything!) I started checking out every book that looked remotely interesting. I read a lot of stuff by Suze Orman, Andrew Tobias, David Bach, and a slew of other authors. I read the tightwad gazette and all sorts of other frugal idea books. I read enough to get a basic idea of how investing works, but that’s absolutely the part of the puzzle that I don’t understand well enough. For our IRAs and HSA, we pretty much only buy mutual funds, index funds, and exchange traded funds – I just don’t understand it all well enough to buy individual stocks. I know that the best thing I can do is keep investing, limit our transactions (to limit how much we pay in transaction fees) and not stress about it.
These days I’m more inclined to do research online as opposed to getting a book, since the info is more up to date. Of course the trick is to sort out the spam from the real information…
BTW, an HSA is a savings account you can set up if you have a qualified high deductible health insurance policy (ask your insurance agent, or check with your HR department to see if your company offers one). Then you can put money into the HSA to use for future medical expenses. You get to deduct the amount you put in from your income when tax time rolls around, and as long as you use the money for medical purposes, you never pay tax on it. Once you turn 65, the account works like a traditional IRA, and you can take money out for whatever purpose you like, but you will pay income tax on it then.
With a Roth IRA, you put money into the account, but you don’t get to deduct it on your taxes the way you would with a traditional IRA. So you’re using after-tax money to fund the account. But when you retire, you get to take out all the money – contributions AND EARNINGS – without paying taxes on it.
Obviously I’m not a financial professional – you should consult one of those if you need help

By: Frugal Trenches

Frugal Trenches — Wed, 06 Aug 2008 16:58:04 +0000

I am exceptionally committed to ethical banking and have moved my money into ethical accounts that don’t invest in certain business’. I would recommend reading some of the UK sites (I believe the UK has the largest number of ethical banking customers per population). They do talk about international ethical funds, including US funds.

By: neimanmarxist

neimanmarxist — Wed, 06 Aug 2008 14:19:29 +0000

i am so impressed with all your financial know-how. What is your recommended reading for someone who is just starting out and doesn’t know a lot of this stuff (ie. how HSA or Roth IRA works) ?

By: FrugalBabe

FrugalBabe — Wed, 06 Aug 2008 06:50:28 +0000

Thanks Tom! I just spent a while reading through your archives – tons of good stuff! For any of my readers who want to see more:
http://www.altenergystocks.com/archives/mutual_fund_etf/