Finally! A Responsible, Social Impact 401k Plan

401k plans are the yeomen of the investment world -- doing hard work behind the scenes with little fanfare or notice. In the best of circumstances, 401k's are practically invisible, tax-deferred and dull wealth builders.  Of course, in some cases, these workhorses are neglected, improperly allocated or are poorly utilized.  With a little help, employees could do so much more, and better prepare themselves for retirement... We'll get back to this in a minute.

Out of sight, out of mind...  until someone decided to look under the hood.

Plan participants have recently begun to scrutinize the holdings of their 401k mutual funds. Finding them "loaded to the gills" with the likes of BP, Halliburton, Wal-Mart and Exxon-Mobil, they are requesting more "responsible" options for their retirement assets. Plan sponsors (the employers) are seeing decent performance among the SRI fund crowd and are starting to include them in their plans. And so, the path is being paved for sustainable 401k's to accompany the newfound sustainability goals of corporate America.

If your employer doesn't offer this yet, we can help get the ball rolling.  And if you're not getting counseling, quality funds, and competitive costs -- then raise the questions!  Because THIS is required by LAW for every plan. 

A new way of thinking... It's become clear of late that investors increasingly care about the "footprint" of their investments. Indeed, social enterprise (that is, for-profit enterprises with a social benefit) is a BIG trend. In fact, JPMorgan predicts that "impact investments" will soon be a $1 trillion asset class.

Not surprisingly, "social impact" funds have been off limits to retirement plans. (We're talking about private equity, real estate, microfinance, etc.  Not socially-responsible mutual funds...)  Impact partnerships provide institutions and wealthy private investors with an attractive combination of social and financial rewards, but their illiquidity and short performance history make them unsuitable for retirement plans. 

But what if...  What if 401k investors could have the "sustainable" mutual funds they demand and be able to participate in social impact partnerships without complication? Would this be the best of both worlds?

Enter Boardwalk Capital, the South's only Certified B Corporation investment advisor -- ourselves a social enterprise.  We have designed a unique 401k program that includes both a suite of sustainable and conventional funds and a "social impact charitable foundation" to invest in impact partnerships.

Here's how the foundation works:  20% of the firm's future profits will flow into the foundation.  Clients and other community stakeholders (could be you) will essentially be "honorary trustees", helping to select these "impact" investments and staying informed of their financial and social impact characteristics without ever putting their own capital at risk.

Sustainable funds and social impact partnerships...  Revolutionary?  Maybe.  Inspiring?  We hope so.         

Visit www.boardwalkcm.com to learn more, or contact us at info@boardwalkcm.com to tell us your story.

Learn more about the growing Certified B Corporation community, and how we do business a bit differently, at www.BCorporation.net.