Most people invest to feel more secure, so why do some portfolios leave investors feeling uneasy?
One client recently hesitated as we reviewed his dividend-paying holdings. A major tobacco company appeared on the list. “The yield is great,” he said, “but I can’t support what they do.” That tension, between financial performance and personal values, is one of the most overlooked challenges in investment planning.
If your money works against your values, it’s hard to feel at ease, no matter how strong the numbers look.
Values Aren’t Just Personal; They’re Financial
Values-based investing is about building a portfolio you’re proud to own. For many investors, that means avoiding companies and industries they find ethically troubling.
Clients who bring these concerns to the table often have deeply rooted motivations: religious principles, family history, or a desire to create a legacy aligned with their beliefs. Ignoring those values might increase returns in the short term, but it usually creates long-term discomfort. When investors second guess their own decisions, they often delay important moves or stay stuck in analysis paralysis.
Filtering Out One Stock Can Narrow the Whole Portfolio
There’s a trade-off: every filter you add narrows your investment universe. Avoiding entire industries may limit diversification and reduce your growth/income.
One client decided against investing in a tobacco stock but still needed income to cover his expenses. We worked together to adjust his allocations, keeping reliable income sources while reducing exposure to companies that conflicted with his values. Happily, the final result yielded similar returns and increased his peace of mind.
Aligning Investments with Identity
You don’t need to agree with everything a company does, but if an investment makes you uncomfortable, it might not belong in your portfolio. Investors who take time to align their strategies with their values tend to feel more confident and in control.
Interestingly, some clients choose to invest in companies with higher returns and then donate a portion of the proceeds to non-profits that align with their values. This is a practical, unique interpretation of values-based investing.
Smart investing isn’t only about maximizing returns. It’s about creating a financial plan that you’re comfortable with, helps you meet your goals, and doesn’t prevent you from getting a good night’s sleep.
Want help in creating a legacy-based portfolio that aligns with your values? Contact us and together we’ll explore your investments, your values, and your goals.
Douglas Goldstein, CFP® is the director of Profile Investment Services, Ltd. www.Profile-Financial.com. He is a licensed financial professional both in the U.S. and Israel. Call (02) 624-2788 for a consultation on how to set up your American assets to meet your financial goals. Securities offered through Portfolio Resources Group, Inc. Member FINRA, SIPC, MSRB, FSI. The opinions expressed are those of the author and not those of Portfolio Resources Group, Inc. or its affiliates. Neither PRG nor its affiliates provide tax or legal advice.
Published January 14, 2026.