Are you an investor who wishes to go green in your investments? How do you invest sustainably? Read our Earthfolio review to find out.
Any person seeking a sustainable investment company should consider Earthfolio. It’s an automated investment company with sustainable portfolios for potential investors.
Think about it. You can invest sustainably. Platforms like Earthfolio provide you with this opportunity. You get to make money while still minding your impact on the planet.
While not many companies follow good ethos, some are strict about it. These are run and managed sustainably to benefit and better the environment. So, do you want to know how to invest sustainably? This Earthfolio review offers all these answers and more.
What is Earthfolio?
The world continues to grapple with different issues facing the environment. Matters like increasing climate change have necessitated new ways of doing things. Among these changes is a need for a more sustainable way of investing.
That need resulted in the creation of new investment opportunities. An example of a growing sustainable fund is Earthfolio. Earthfolio gives investors a stake in a better future that protects the earth. Its commitment is continuous sustainability.
The company opened its doors in 2000 to fill a need for sustainable investment options in a changing world. Its customers can invest their money using practices that benefit the planet. Earthfolio is an automated investment firm resembling other funds.
However, the main difference is in its ethos. Clients engage in sustainable investing, which is covered in this Earthfolio review. Are you considering sustainable investing? This Earthfolio review will help you learn more about the company and its values.
That way, you can engage in more socially responsible investing, focusing on more than just a simple transaction. It’s best to start by learning the key features of Earthfolio.
What Are the Key Features of Earthfolio?
Online Platform
Everything is done online, from opening an account to transacting. There are no physical advisors to assist.
Specific Portfolios
Earthfolio investment portfolios hold 7 to 12 mutual funds and about 1000 individual stocks and bonds.
Online Questionnaire
You can get a tailor-made portfolio suitable for your investment needs. It all depends on how you answer the Earthfolio questionnaires when opening an account.
Who Can Benefit from Earthfolio?
Sustainable investing options like Earthfolio are growing in popularity. But it’s essential to understand who benefits from them. Sustainable investing is undeniably positively impacting the world. The fact that it works draws more customers to firms such as Earthfolio.
Earthfolio focuses on investments that benefit the earth and promote environmental solutions. In turn, these investments benefit the communities and environment.
Traditional notions about investing continue to change with the rise in sustainable investing. That means more eco-conscious people get to benefit from Earthfolio. If you want to invest your money sustainably, this is the way to go.
Earthfolio incorporates ESG (Environmental, Social, and Governance) practices that dictate its entire investment strategy. As a result, new investment opportunities result from more asset classes suitable for a broad group of people.
Investors are now on the lookout for sustainable companies to invest in. Communities and regions, in turn, benefit from this change in investment.
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Benefits of Investing in Earthfolio Compared to Other Investment Platforms
This Earthfolio review teaches you why this is the best investment platform.
It’s the Future
Sustainable living is the future of the planet. Already, so much has changed in the way things are done that its impact is felt everywhere. Even investing is now recognizing how crucial sustainability is. So, start as soon as possible to get a foot into the future.
Sustainable investing isn’t a fluke or something that will pass. Calls for investing that observe ESG have resulted in firms like Earthfolio doing exceptionally well.
There’s a shift in global investing, which means more people will need to consider sustainable funds and invest better.
ESG Funds are Popular
No one wants to be seen as responsible for destroying the planet. That’s why fund companies like Earthfolio are releasing ESG funds.
These funds follow specific criteria for companies in which to invest.
Better Risk Management
Earthfolio focuses on companies with sustainable practices. While others try to use sustainable funds to subvert scrutiny, Earthfolio funding focuses on companies implementing sustainable practices. So when you open an account, you know your funds are working for sustainability.
Who Does Earthfolio Appeal to?
Many young people are getting into investing but with a twist. Their focus is on sustainable companies that work towards practices that don’t harm the environment. An increase in demand for such sustainable investing is why Earthfolio was formed.
Millennials, for instance, find Earthfolio appealing when searching for investment opportunities. It follows ESG practices in the letter and aims to create better, more sustainable investing opportunities.
Is Earthfolio a Long or Short-Term Investment Platform?
Earthfolio is a long-term sustainable investment platform. In this Earthfolio review, you will learn how to open an account. At the same time, you can note how to invest and the amount necessary to start.
While other sustainable funds suit short-term investing, Earthfolio focuses on the long term. The good news is your money is still accessible. You can have all or part of your investment sold when the markets are open.
But, it’s better to have the investment for a more extended period. That way, you make more profit from it.
What are the Upfront Costs of Earthfolio?
After learning more about the company, I realized it’s better to address the upfront costs. How much will it cost you to run an Earthfolio investment account?
When you open an Earthfolio account, the cost is $25000. You also need to maintain the same amount in your account at all times to maintain it. If at any time the amount drops, you get charged.
Once you open an account with $25000, an annual management fee is payable. It’s 0.50% of the $25000. But, when your account balance is less, you are charged a flat fee of $31.25 on top of the maintenance fee.
However, the firm allows you to consolidate if the amount drops. You can consolidate with similar accounts like a 401(k) or a traditional IRA. One can have a value of $18000 and the other $7000, creating a total of $25000.
But be sure to talk to a tax advisor first. Consolidating accounts is a good idea but has some consequences. Also, remember that sustainable investing isn’t risk-free. Like any other fund, there are some risks to consider.
Types of Earthfolio Investment Accounts
Earthfolio has six types of accounts. These are:
Individual Account
It suits investors who want to open an account alone and not as a group. Depending on your preference, you can open with $25000 or consolidate. It’s a minimal-requirement account that is simple to set up online.
Earthfolio Joint Account
Two or more people can open an Earthfolio Joint account. You can opt to each open with $25000 or use one amount for all members.
The Joint account is accessible to each member of the partnership.
Earthfolio Trust Account
A trust account differs from an Individual account. It’s an account you can open and then permit another person to run it. They, in turn, become the account trustee. Just be sure to learn more about the agreement.
Earthfolio IRA Rollover
When you open an IRA Rollover account on Earthfolio, you can direct your retirement fund from your previous employer to it.
The account enables you to preserve the status of your retirement fund. This means you won’t need to pay any penalties or taxes on the money when you withdraw early.
Earthfolio 401(k) Rollover
A rollover 401(k) account permits you to bring money from your 401(k) to the Earthfolio investment account. However, it’s crucial to learn how this impacts your account.
Earthfolio SEP
SEP stands for Simplified Employee Pension account. It’s an IRA account applicable in the US that you can open as an individual. Your boss, who runs a business, can set it up for you.
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Steps of Opening an Earthfolio Account
Part of this Earthfolio review is helping you set up an account. You need the account to start making sustainable investments.
Creating an Earthfolio account takes only 10 minutes. The process is quite simple. All you need to do is locate the ‘Get Started’ button on the Earthfolio website’s homepage.
The first page you come across asks you simple details like your name, email, and level of investing experience. Answer the questions before proceeding to the next page. Once you complete the questionnaire, click on ‘Next.’
The following questionnaire helps you narrow down the type of account that suits you. It’s based on the answers you gave on the first page. Earthfolio provides you with a portfolio of the best investment options.
On this page, you get information on the right portfolio to start with, the performance of the portfolio, and how much fee to pay Earthfolio for managing it. The company also helps you consolidate an existing account with the recommended investment options.
After that, you proceed to the Application portion of account opening. Here, you get step-by-step instructions on how to begin using your new Earthfolio account.
You can view the historical performance of the recommended Earthfolio portfolio. It’s crucial to analyze it carefully and seek further investment advice, especially as a beginner. That way, sustainable investment can work to your advantage.
Since this is a digital investment platform, all the portfolios are managed online. Everything is done on a computer or other smart device. Blue Marble Investment, a Registered Investment Advisory firm, runs all of Earthfolio’s portfolios.
Pros of Earthfolio
Adheres to ESG Criteria
An investment firm must follow set ESG criteria to offer sustainable portfolios. This Earthfolio review demonstrates this. The firm offers clients seeking suitable investments just that.
Account Variety
You can choose from six types of accounts when working with Earthfolio. It’s crucial to note that Earthfolio employees are always available to help you understand each account before starting your investment journey.
Simple to Open an Account
All you need is access to a computer and the internet. Next, you set up an account on Earthfolio’s official website. Depending on your answers to specific questions, the company recommends specific portfolios that suit you.
Promotes a Sustainable Environment
For Earthfolio, it’s more than just transacting. The firm aims to offer investors the chance to be part of companies with sustainable practices at every level.
Easy Access to Your Money
While it’s impossible to withdraw the funds immediately, you can still access them in a week. You can sell part of your entire portfolio and access the funds after three business days. Long-term investment is preferable, but it’s not a must.
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Cons of Earthfolio
Everything is Online
While many people can invest online without hesitation, it’s still not ideal for some. They want access to human, financial advisors who can take them through the entire application process.
Also, if they have any questions, it’s better to have a face-to-face conversation. Earthfolio doesn’t offer such interactions. You can only reach Earthfolio employees by email or by calling customer service agents.
It’s Expensive
The first account you open will cost $25000. That is a substantial amount that locks out many investors interested in Earthfolio. The company further restricts the amount. You get charged if it falls below the set sum.
Annual Maintenance Fee
You must pay Earthfolio 0.50% of the sum in your account annually. Such maintenance fees reduce the profit you can earn annually from your portfolio.
Few Investment Options
While other sustainable investment companies have more options, Earthfolio has only a few. The limited number isn’t appealing to many.
No Bank Guarantee
If your portfolio fails, there’s no guarantee of recovering the funds. This is a risk that each sustainable investor takes when investing in Earthfolio ETFs, for instance.
Such a lack of security is a cause for concern for many who consider it.
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Earthfolio Customer Service
Any client with an issue that needs addressing can contact Earthfolio via email or place a phone call. Unfortunately, the company doesn’t offer a live chat option on its website. That can limit the response time to your questions.
Earthfolio customer service has specific support hours: Monday through Friday, 9 a.m. to 5 p.m. PST. This is pretty limiting, considering this is a digital investing platform.
FAQs
Is ESG investing worth it?
ESG investing is an approach to investing that considers environmental, social, and governance factors in addition to traditional financial metrics. It has gained popularity in recent years as investors have become more conscious of their investments’ impact on society and the environment.
While there is no one-size-fits-all answer to whether ESG investing is worth it, studies have shown that companies with strong ESG performance tend to have better long-term financial performance and lower risk profiles.
Does ESG investing outperform?
ESG investing is an investment strategy prioritizing companies with strong environmental, social, and governance practices. Studies have shown that ESG investing can outperform traditional investing methods, particularly in the long term. However, the extent to which ESG investing outperforms can vary depending on various factors, including the specific ESG criteria used and the overall market conditions.
How to get a job in ESG investing?
To get a job in ESG investing, one must have a strong understanding of sustainable investing and the ability to analyze ESG data. Networking with professionals in the field and obtaining relevant certifications, such as the Chartered Financial Analyst (CFA) or the Certificate in ESG Investing, can also increase one’s chances of securing a job in ESG investing.
Is BlackRock an ESG?
BlackRock is an investment management company. They have a range of funds that invest in companies that meet certain environmental, social, and governance (ESG) criteria. However, BlackRock itself is not an ESG as it is not a company that meets ESG criteria but rather a company that offers ESG investing options.
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