Up, Up and Away: Making Wise Green-Investing Decisions

In this, the second part of a series on green investing, we'll focus on financial sustainability as it relates to the individual investor. We're all aware that investors come in many shapes and sizes - some like to take risks, play the market and hope for good returns; others play it safe, cautiously investing where returns are all but guaranteed. Whatever your individual style, investing in green initiatives can be rewarding. Here are some simple steps to get you started:

1. Do your research! This should always be the first thing you consider when deciding which combination of mutual funds, exchange traded funds, and/or individual stocks you'll invest in. There are financial advisors that specialize in sustainability and green investing, or you can select your own stocks and bonds.

2. Most experts agree that green investing is a long-term goal. You won't net much in any green investment shorter than five years. While most individuals won't invest their entire portfolio in green initiatives, it is a big task to decide what percentage you'll funnel towards sustainability, keeping in mind that longer investments will likely yield great results.

3. If you're new to financial sustainability, begin by investing in companies that have proven track records. New Alternative Funds, Winslow Green Growth, and Domini Social Equity are a few of the more respectable firms. Google others or consult your financial advisor.

4. Diversify! This is probably the key to any investment strategy, but is even more important in green investing. If you're looking to earn money fast and easy, stay away from sustainability initiatives that haven't yet caught on. Global warming wasn't a hot topic ten years ago, but it is now. Likewise, many areas of green investing are futures-waves. In other words, it will likely take some years before those initiatives are profitable. Be prepared to ride the future wave if necessary.

Following these steps will put you on a path towards investing wisely in green initiatives. Never be afraid to ask questions or to seek the advice of professionals in the sustainability market. Its your money and investing it shouldn't be a fly-by-the-seat-of-your pants decision.

Please note: the opinions in this article are solely those of the author and are not intended as financial or legal advice. Consult the appropriate professionals before you make any financial or investment decision.

Photo credit: Bark Bud