I’ve saved up some amount of cash, but family is poor and hasn’t had useful advice. I feel like the stock market hasn’t been great for society, but surely there are some causes who would use the capital for good (and give it back when I need it later)? I have a half remembered portfolio from a previous union with a big war chest, but it doesn’t feel actionable.
I’m in North America + UK; but answers globally I think are interesting.
There are things like microloans you can participate in where you loan very small businesses money to get them off the ground or stay funded for another month and what not.
I don’t believe you make money, so I don’t know if that is considered an investment in that regard, but you are investing in individuals and their communities.
I searched quickly and Kiva looks like it can give you an idea how microloans work. I have no experience with them, I just know this type of program exists.
Alternatively, fund and/or participate in a local charity. I volunteer time and give a humble donation to my local wildlife rescue, but you could also donate or work at your local food pantry, women’s shelter, Food Not Bombs, etc. Again, no money back, but it’s investing in your community and you can see “dividends” from that.
Any investment where you get more money back than when you started has strings attached, so that’s an ethical consideration.
I’ve been on Kiva for years. It’s legit, but you only stand to lose money. There’s no cashing out (at all, afaik).
You lose money 2 ways: donating to Kiva operations when you fund a loan (it’s optional though), and defaulted loans. If that guy in Madagascar doesn’t repay the loan for his seeds and fertilizer, it’s just gone.
If the loan is repaid (and you get periodic emails every time they make a payment with some banal statement about how grateful the borrower is), Kiva adds it back to your account and you can relend it.
I’ve been completely hands off for the last 5 years. It just automatically re-loans when I have funds in my account and I get an email. If enough people default, I’ll have to decide if I put in more money or call it quits.
That’s pretty much how I thought it might go. Like, it sounds good in principle, but for one reason or another, they’re people banks won’t lend money to for profit. I’d have to think it’s just inherently more risky. If one can afford to bet on people and accept the risk, I think it’s great some people can get help and hopefully improve their situations.
I like donating local as I can see the people, and in my case, wildlife, that is being helped, and I can also see exactly what their needs are and how they’re being filled. It gives me complete confidence where my donations are going, and that makes me happy with knowing I’ll never see any of that money come back my way.
Like any other investing, one just needs to determine their risk acceptance and have a clear idea what they expect to get out of it.