Late Capitalism, 'Ethical' Investing, And Building Wealth In A Broken System

Chelsea and Simran Kaur from Girls That Invest discuss ethical investing, starting from nothing, and how to build wealth and live by your values under capitalism.

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[shelleydenison]

Hi TFD and viewers. This morning I made the very last payment on a personal loan (original principal of $6, 500), and I just really want someone to be proud of me so I'm telling this comment section.

[kagitsune]

This was the video, plus learning about the Boglehead method mentioned within, were the education that finally convinced me to stop worrying about every detail and messing up my entire retirement account, and just jump in and buy some S&P500 + Extended market index fund shares. Thanks ladies, this is a big load off my mind... No more depreciating cash!

I do wish the conversation went deeper into the ethical implications of investing, instead of kind of skirting around the subject with a tone of mild shame. As we keep pushing for the end of this broken system, can we, for example, invest in employee-owned companies? Ethical solar and wind turbine suppliers? Bonds from countries with good long-term energy policies? Even companies that will grow as we take on the climate resilience problem? So much to learn.

[Crazyfish]

Kudos to you both for not giving into greed as business owners. You're part of the reason there's a shift in attitudes towards gross CEO salaries. Do these people really add the value of 100x or more employees? Something like 10x your lowest paid employee would fix a lot about capitalism.

[kevince]

In terms of ethical funds or ESG funds, I think that label is about as sketchy as the organic label on foods. Sure the companies did something to earn it, but there are many loopholes. Be careful out there.

[roothekangaroo]

Really enjoyed this episode! As someone that recently started working full time and is a big believer in climate justice, I've been thinking a lot about the dilemma of wanting/needing to invest but not wanting to support unethical and unsustainable businesses. To be honest, I can't help but feel a little skeptical of those ethical/sustainable funds and whether their holdings are the real deal or just good at greenwashing. I would really love to see a more in depth video about the options that exist to ethically save for the future!

Or if anyone else has any resources they could point me towards, I would really appreciate it!

[TheRealE.B.]

"Our accounting methods have trouble handing a company that's headed by a working professional instead of a useless do-nothing oligarch parasite."

[Briannotated]

Lots of nuance in this conversation and it's so great! With women still being primary care givers in most cases, giving money to us with no direction may not make a lasting change simply due to those care-giving norms. We expend so much energy trying to meet the needs of today, the needs of tomorrow may not take as much priority as they should.

[anneliseallen]

Thank you for talking about this. I have searched for videos and haven't seen much, although general education and discussion around investing has increased and I've learned a lot in the last year, I've gotten really concerned about holdings like Boeing and other big businesses ultimately funding deaths in Gaza.

I'm trying to be nuanced because I believe there is no ethical consumption over capitialism, and want to gain more stability myself. BUT I think there is something I can do or rather things I can avoid. I'd love if either of you know of and do a video on holdings you'd recommend avoiding ethically. Thank you again!

[KaironQD]

Had this on my watch list for a couple weeks but only got around to watching now. Excellent discussion! Especially loved the wrangling over ethical investing and anything where bogleheads are mentioned is a wonderful place to be for an investing talk. Thank you! 😃

[isbalella]

Chelsea says that no one forces you to keep wealth once you have it, but the average person makes unethical choices with what little power they have over others lower in the hierarchy. I don't doubt this would be amplified by them joining the owner class. The only truly ethical solution is to abolish the economic system that incentivizes maintaining this hierarchy. You're free to do what you want to look out for yourself, but don't call it ethical.

[Robynhoodlum]

"I live a fantastic life, I don't need more money" - Can we please make this the norm? THIS is the CEO's we need. Even NONPROFITS pay CEO's way too much!

[VS-unow]

I loved this episode: I found it really interesting how Europe was, somehow, part of the discussion. However, I would like to know if you consider the idea to do an episode about the European market in depth. I would love to invest and, recently, I started to follow The Financial Diet with growing interest, but I find myself frustrated sometimes because I don't know how or if the European market and the US one are different and such. Will you ever consider the idea? Thank you.

[jae-annedanae]

Chelsea I LOVE the questions you ask in this series. You always ask such excellent questions

[PokhrajRoy.]

I recommend ‘A Doll’s House’ by Henrik Ibsen. It’s relevant even in this economy.

[luanamendes]

What a fantastic episode with super relevant discussions. I particularly enjoyed the bit about not making decisions for others because you think you know best. I would love a little more nuanced discussion about this in the future. My lifestyle requires my family to move to different countries where culture relating money is so different than my own. We often employ locals for household services, childcare, etc. Finding the balance between my own family’s financial goals, social obligation and personal vs. professional relationships is a real art.

[SadiaD]

It's nice to see South Asian representation on TFD!

[melb]

As an accountant, I will say the issue with valuations and executive salaries works both ways. If an executive is overpaying themselves it will be added back in the valuation process. The idea is that you are determining what you would have to pay to a third party to do the job.

[kimayaj]

yes yes to 20:00. this is very much what i dont know how to do. ethical investing. would love to hear more about this. get more guidance on this.

[sb]

Simran is so cool and a great speaker. I'd love to hear more from her. The question of retirement is a bit scary to me, tbh. I'm college-educated, financially savvy, and have a good career in a meaningful field. As an American, I don't think I will retire here. I'm currently looking into doing my master's in the EU in order to pay less & only study for one year instead of two. I'd rather pay $50, 000 in combined living expenses and tuition and only lose out on one year of salary than pay $100, 000 and lose two. I bring that up to say that life in America is needlessly expenses in many ways. Consumer goods are cheap, but life's necessities cost a lot, and for that reason I believe I'll retire in a more affordable country in Latin America or southern Europe.

[Letty]

TFD and the Girls Who Invest team are doing such great work teaching financial literacy and helping to take the stress out of investing. It is valuable beyond measure!