LOS ANGELES (12/9/14)--In a list of popular ways consumers can invest in "the social good," or in other words, invest their money with a social conscience, the Los Angeles Times named credit unions as one of their best options.
"Joining a credit union is a simple way to invest in a community--either a geographic community or a community of people with similar interest," wrote Tom Petruno for the Los Angeles Times (Dec. 7).
No matter the option on the list, which also includes socially conscious mutual funds and microlending organizations, Petruno said that the first rule in socially responsible investing is the same for any type of investment: Do your homework.
An ethical investment may not always be the most financially sound.
"You can pick a bad investment just as well in socially responsible investing as in mainstream investing," Jed Emerson, chief impact officer at ImpactAssets, told the Los Angeles Times.
Petruno has a hard time finding flaws with investments into credit unions and their not-for-profit, member-owned structures, however.
"Because of their nonprofit status, credit unions often pay better rates on deposits and charge lower rates on loans than banks," Petruno said.
Additional options for those interested in investing in the social good, as listed in the Los Angeles Times article: