How will Joe Biden’s infrastructure plan affect your investments?
Following many elections, new presidents often introduce new measures to enact on campaign promises. President Biden is no exception. His proposed infrastructure initiative will rank as one of the largest federal efforts in history to reduce greenhouse gas emissions if it is signed into law.
This law is good news for the environmentally conscious, and it may also be good for investors who are active in sustainable investments.
Joe Biden’s infrastructure plan and ESG investments
In recent years, ESG (environmental, social and governance) investments have captured a significant net of new money from investors. Companies with high ESG scores demonstrate that they take measures to reduce environmental impact, advance social equality and observe ethical business practices. Many millennial investors have shown interest in ESG investments, and this new proposal by the president may spur this market on even further.
Biden’s proposal, if it becomes law, will see $2 trillion invested in the nation’s infrastructure, specifically to overhaul many facets of it with more environmentally sustainable methods. If you have investments in sectors that could benefit from this plan, you may see some growth.
However, it would be wise to exercise some caution and avoid throwing out your current investing plan just to hop aboard a new train. You may want to shift a portion of your portfolio into sustainable investments as part of diversifying your portfolio. Perhaps, you may want to try looking for ESG funds that have been around for a while and are run by managers who have demonstrated their quality in sustainable investing.
Talk to a ProVise CFP® professional about investing under Joe Biden’s infrastructure plan
At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.
Are you ready to talk to a professional about investing under Joe Biden’s infrastructure plan? Contact ProVise today to schedule a complimentary consultation.