Most people associate passion investing with expensive items, such as rare watches, fine wine, vintage automobiles, and art. People invest in these non-traditional assets out of passion just as much as for financial gain. The idea is that these assets can provide enjoyment as well as the potential to increase in value over time.
I approach the topic of passion investing with my clients a little differently. I appreciate the financial aspect of investing, but I also understand that not all investments must be made with the goal of maximizing returns in the conventional sense. Investing in something that brings you personal satisfaction, piques curiosity, aligns with your values, or just makes life a little more interesting can sometimes be worthwhile.
Let’s take a look at two examples and then explore the importance of taking a balanced approach: passion investing coupled with a solid, diversified strategy.
A Different Kind of ROI
Recently, I was asked by a client if it would be wise to invest $500 to $1,000 in a medical stock that her partner, a doctor, was excited about.
My response?
It depended on her hopes. It might not be a bad idea if she found value beyond the financial gain and was comfortable with the potential that the stock might not succeed.
I told her that if she saw the investment as a way to learn more about the burgeoning innovative technology in the medical field and to have deep conversations with her boyfriend and friends, then, in addition to the potential for monetary gain, she was getting a return on investment beyond just the stock price.
It’s a different approach to investing, similar to how an avid sports fan buys season tickets—not in anticipation of a profit, but rather, because it brings them enjoyment, engagement, and a feeling of connection to the community.
Investing in What’s Important to You
Passion investing isn’t solely about speculative stocks. It’s also about matching your portfolio to what’s important to you.
Here’s another example.
A few days ago, I worked with one of my clients, Bob, (1) to add a fund to his portfolio that honored his Catholic faith.
For Bob, this investment was about more than just how much he could gain; it was about knowing that his funds were going to businesses and projects that shared his values. The investment gave him a sense of purpose and confidence in his financial decisions.
A Balanced Approach
Make no mistake, passion investing should never replace a sound, diversified investment strategy. The majority of a portfolio should be based on solid financial principles.
However, making room for assets that have personal meaning can be an important—and pleasurable—part of financial planning.
If you are drawn to an investment because it enlivens you, inspires shared conversation, or matches your values, take a step back and ask yourself, “Am I okay with the outcome, whether positive or negative?” and “Does this enrich my life in ways other than financial gain?” If the answer is yes, consider including passion investing in your portfolio.
I believe wealth is most effective when it is linked to a purpose. Maybe it’s supporting causes that are important to you, investing in ways that are consistent with your values, or just getting more involved with your financial life.
Ready to Explore Your Own WealthwhileTM Strategy?
Passion investing can be part of a purposeful financial plan, whether it’s a small investment in something that sparks joy or aligning your portfolio with your values. At Deerfield Financial Advisors, we believe your money should do more than grow; it should bring meaning.
Let’s talk about how to integrate your passions into a well-rounded strategy. Call me at (317) 469-2455, email ssteel@deerfieldfa.com, or use my online calendar to schedule a complimentary consultation. Together, we can craft a plan that helps your wealth do what it was always meant to do: enrich your life.
To learn more about how we’ve supported our clients in their financial decisions, and to hear their stories, read their experiences here: https://deerfieldfa.com/client-stories/.
About Susie
Susie Steel is COO, Wealth Manager, and Senior Shareholder at Deerfield Financial Advisors, a fee-only financial advisory and wealth management firm with offices in Indianapolis and Chicago. With over three decades of experience in financial planning, Susie’s approach has always been rooted in a spirit of service, treating each client as an extension of her own family. She simplifies the complex for clients, with the goal of creating a calm, trusting, and nurturing environment. Her unwavering commitment to the principle of “To whom much is given, much will be required” serves as the driving force behind her dedication, diligence, and empathy.
Susie obtained a business management degree from Ball State University, holds the CERTIFIED FINANCIAL PLANNER® designation, and held the Accredited Estate Planner (AEP®) designation from the National Association of Estate Planners & Councils (NAEPC) from 2013 to 2018. Susie is actively involved with an extensive list of professional organizations, including NAPFA (The National Association of Personal Financial Advisors), a premier association of fee-only financial advisors, and has served on multiple boards, committees, and councils. Her consistent recognition as one of Indianapolis Monthly’s “Five Star Wealth Managers” for the past decade attests to her outstanding accomplishments (2009-2023).
Outside the professional realm, Susie has contributed to her community through numerous efforts including her involvement in the Financial Center First Credit Union (FCFCU), the Indianapolis Children’s Museum Planned Giving Council, the Kiwanis Club of Northwest Indianapolis, and Junior Achievement. She mentors women through the CFP® Board’s “WIN-to-WIN” program, embodies the spirit of Rotary Club of Carmel, advocates for Indiana Canine Assistant Network (ICAN), and actively serves on the board of the Mary Rigg Neighborhood Center (MRNC).
Susie and her husband, Kevin, reside in Carmel, Indiana, where they raised their three children. Outside the office, her focus centers around family, spirituality, and fostering meaningful connections. Embracing the concept of the body as a temple, her personal growth is nurtured through practices like strength training, yoga, and meditation. In her leisure time, she enjoys strolls with her dog, Lulu, and indulges in movies, podcasts, books, and the theater. To learn more about Susie, connect with her on LinkedIn.
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(1) Name changed for confidentiality purposes.
