What keeps us healthy and happy as we go through life? Over 80 percent of millennials said that a major life goal for them was to get rich. And another 50 percent of those same young adults said that another major life goal was to become famous.
The Harvard Study of Adult Development may be the longest study of adult life that's ever been done. What are the lessons that come from the tens of thousands of pages of information that have been generated on these lives? Well, the lessons aren't about wealth or fame or working harder and harder. The clearest message that we get from this 75-year study is this: Good relationships keep us happier and healthier. Period.
Close relationships, more than money or fame, are what keep people happy throughout their lives. Those ties protect people from life’s discontents, help to delay mental and physical decline, and are better predictors of long and happy lives than social class, IQ, or even genes.
We've learned three big lessons about relationships. (1) The first is that social connections are really good for us, and that loneliness kills. It turns out that people who are more socially connected to family, to friends, to community, are happier, they're physically healthier, and they live longer than people who are less well connected. And the experience of loneliness turns out to be toxic. People who are more isolated than they want to be from others find that they are less happy, their health declines earlier in midlife, their brain functioning declines sooner and they live shorter lives than people who are not lonely.
(2) And we know that you can be lonely in a crowd and you can be lonely in a marriage, so the second big lesson that we learned is that it's not just the number of friends you have, and it's not whether or not you're in a committed relationship, but it's the quality of your close relationships that matters. It turns out that living in the midst of conflict is really bad for our health. High-conflict marriages, for example, without much affection, turn out to be very bad for our health, perhaps worse than getting divorced. And living in the midst of good, warm relationships is protective.
(3) And the third big lesson that we learned about relationships and our health is that good relationships don't just protect our bodies, they protect our brains. It turns out that being in a securely attached relationship to another person in your 80s is protective, that the people who are in relationships where they really feel they can count on the other person in times of need, those people's memories stay sharper longer. And the people in relationships where they feel they really can't count on the other one, those are the people who experience earlier memory decline. And those good relationships, they don't have to be smooth all the time. Some of our octogenarian couples could bicker with each other day in and day out, but as long as they felt that they could really count on the other when the going got tough, those arguments didn't take a toll on their memories.
So this message, that good, close relationships are good for our health and well-being, this is wisdom that's as old as the hills. Why is this so hard to get and so easy to ignore? Well, we're human. What we'd really like is a quick fix, something we can get that'll make our lives good and keep them that way. Relationships are messy and they're complicated and the hard work of tending to family and friends, it's not sexy or glamorous. It's also lifelong. It never ends. The people who fared the best were the people who leaned in to relationships, with family, with friends, with community.
The Harvard Study of Adult Development:
What is the Spectrum of Impact Investing Approaches?
Given the field’s growth and increased number of actors, the last ten years have also seen a proliferation of definitions and terminology related to impact investing. In fact, strong opinions prevail regarding whether or not the term “impact investing” is the best to capture this field. While some prefer mission-related investing or sustainable/responsible investing, still impact investing is most commonly used.
Rather than arguing about the terms, let's discuss three approaches and one overarching strategy to describe impact investor practices. Depending on who you are—and your goals and capacity—you may have the resources and willingness for some but not all of these approaches. See the image of the home as a good metaphor for describing these approaches to managing and being accountable for your assets.
Clean Up: This approach reflects the belief that your assets should align with your values, and by holding or divesting specific assets you can increase that alignment and express your values. For example: Clean and remove toxins.
Renovate: In this approach, you select assets based on specific investment criteria that define eligible and ineligible investments with the goal of incorporating the positive and negative externalities into your investment decision. For example: Paint your house.
Add a Room: By picking a specific theme, you are using your capital to drive the generation of a specific environmental or social impact. For example: Add a new addition to your house.
Manage and Measure: This overarching strategy is to continuously measure and manage the positive and negative impact of your assets and respond to new data and events. You will track the emergence of new environmental and social movements, as they become impact investment products. For example: Maintain and repair your roof.
Rockefeller Philanthropy Advisors yesterday published its handbook for impact investors, a refresh of a guide they first published ten years ago, a lifetime ago in impact investing. It is a comprehensive (182 pages) guide to the nuts and bolts of impact investing, with some help from a 45-year old avatar investor named Sophia.
With so many people now trying to get themselves oriented in investing their money for social and environmental impact, it is excellent to have a fully updated primer for beginners, and a reference book for the more experienced.
The Handbook is available (for free) at: https://lnkd.in/dH8qK7U
Impact investing is becoming an increasing panacea among investors. I don't rule out that this will soon become not only an exclusive privilege for the "big boys", but will spread to retail investors, regardless of their portfolio size. After all, today you can invest with or for the social impact having just a few hundreds on hand.
I spent a good hour listening to UK social impact start-ups pitches to investors. Some turned out to be quite interesting, others a little too far ideologically or even geographically (yes, it still influences). But without exception, everyone's conclusion was one you want to write in capital letters:
GIVING * IS A NEW MARKETING.
* In the broadest context of this word: from the implementation of social responsibility strategies through the support of selected social initiatives to direct investment with or for social impact with or without financial return.
Fun fact: this year, the fingers of one hand are not enough to count the requests received by M. Čiuželio labdaros ir paramos fondas (M. Ciuzelis Charity Foundation) from various business entities for publicity in exchange for the support provided. Do you feel the difference? Not us who go and ask for the support, but vice versa. This is a direct reflection of the conclusion in capital letters.