If you’re working with a financial planner, chances are you’re the kind of person who has also prepared for the possibility of an earthquake, hurricane, or wildfires. But have you prepared for potential civil unrest around the election? “What? No, that could never happen here!” you might be thinking. Well, it’s not something I’d ever worried about before either, but hear me out.
In the last year, the climate crisis seems to have finally gotten its due in mainstream culture. The deniers are still dishing distractions, but the voices for change are now front and center. Perhaps Greta Thunberg’s sailboat journey to the United Nations was the turning point? Was it the asset manager BlackRock finally making a public declaration on the urgency of sustainability? Or maybe Amazon’s Climate Pledge to achieve “net-zero” carbon emissions by 2040? Certainly, the wildfires, floods, and sixty-degree weather in Antarctica make it harder to pretend the climate crisis hasn’t begun. Whatever future historians peg as the tipping point, it’s clear that we must mobilize a massive change in our entire global economy.
Natural Investments continues to purchase offsets for the carbon impact of our business activities. Our primary carbon impact comes from air travel for conferences and meetings.
Climate change is one of the most urgent global crises facing humanity. This was as true during the Great Recession of 2007-2008 as it is today––yet while government institutions were immediately summoned to support our financial recovery, no such action was taken to mitigate climate change. More than 10 years later, our economy has recovered, but climate change has worsened.
In the United States, neither our leaders nor our institutions are providing the kind of bold climate leadership we need. International organizations that are working to maintain a livable climate don’t have sufficient jurisdictional power or financial resources to achieve impact at the speed and scale necessary to mitigate and adapt to the crisis. What can be done?
FACTFULNESS: Ten Reasons We’re Wrong About the World – and Why Things Are Better Than You Think
By Hans Rosling
Hardcover: 352 pp. Flatiron Books
The conundrum about this book is that it really should be read by those folks who never read books. You know who I’m talking about. The late Hans Rosling, who died in 2017 after an impressive career in education and public health, urges us to let the data tell the story, rather than imposing a narrative based on our “dramatic instincts.” He highlights ten ways that our instinctual bias and craving for drama, similar to our craving for sugar and lethargy, undermine our wellbeing.
My family and I survived the Northern California firestorm of 2017. We were incredibly fortunate; unlike many our friends and residents in our area, we did not lose our home or livelihood. At the peak moment of fear, the fire came within 3,400 feet of our home. I spent hours wetting the roof, talking with panicked neighbors, and gauging the wind and the smoke. We got ready to evacuate by packing the car, letting our chickens loose, and making peace with the thought of starting over. Thankfully, some can-do neighbors with tractors plowed down the fire front, and we were spared.
Months later, our lives returned to normal. But as a planner, I am surprised at how unprepared we were when disaster arrived. We had planned for this. We’d held meetings with family and neighbors, checked on each other’s stores of water, food, and supplies, and located the water and gas shut-off valves for each home. We had back-up phone numbers of relatives, battery packs for our phones, and emergency radios. But still, we were missing critical elements. I share these insights now, with the hope that they will encourage others to prepare well in advance of fire season.
We have some exciting news to share. This year, Natural Investments, LLC (“Natural Investments”) made some changes in the composition of its ownership. Previously, Natural Investments was equally owned by Hal Brill, Michael Kramer, and Christopher Peck. We are pleased to announce that Natural Investments is now owned by Hal Brill, Michael Kramer, Christopher Peck, James Frazier, Malaika Maphalala, and Greg Pitts. Michael Kramer and Christopher Peck still own the same percentage they owned previously. Hal Brill sold a portion of his membership interest in Natural Investments to James Frazier, Malaika Maphalala, and Greg Pitts, each of whom now owns 5% of Natural Investments.
The managers of Natural Investments remain the same. Michael Kramer and Christopher Peck have been managing members since 2007 and will continue in that role. The new owners have been Investment Advisor Representatives (IAR) with Natural Investments since 2011 for Greg Pitts, 2009 for Malaika Maphalala, and 2008 for James Frazier. Hal Brill is still an owner and an IAR, providing continuity to Natural Investments.
We expanded ownership to help sustain the long-term continuity of Natural Investments. We believe that these changes will not alter the control, management or vision of Natural Investments. All of us continue to be resolved to build a better future through a transformation of the investment world.
Please let us know any questions you might have. Feel free to contact Christopher Peck through our contact form.
Christopher, Michael, Hal, James, Malaika, and Greg
As Robert Muir-Wood says in The Cure for Catastrophe: “Natural disasters are in fact human ones: we build in the wrong places and in the wrong way, putting brick buildings in earthquake country, timber ones in fire zones, and coastal cities in the paths of hurricanes.” Global climate change is already amplifying freak weather events, adding tricky considerations to today’s real estate decisions: unprecedented droughts, raging wildfires, and superstorms with their disastrous floods.
How is the smart, responsible homebuyer/homeowner to reduce exposure to such risks? No one would disagree that protecting one’s life, family, and assets is a worthy goal, but planning and preparation don’t come easily to everyone.
Recently I talked with a client who is considering buying a house in Sonoma County. As you might know, the housing market here in the Bay Area is variously described as “crazy,” “red hot,” “ridiculous,” and “divorced from reality.” A similar situation prevails in many cities and towns across the country. Should a smart home buyer take the leap now or wait and hope for prices to drop? How do you evaluate whether renting or buying is the best strategy?
The comment sections of innumerable personal finance blogs are strewn with the wreckage of the battle—no, the war—around this question. It’s nearly as hot as the debate over whether to pre-pay a mortgage or not (don’t get me started). As a math major, I like to look at the numbers myself, play with calculators, build my own spreadsheets. After hours of work on this my definitive answer is “it depends.” Seriously. It depends on a bunch of factors, but actually pivots on one big factor.
Climate change is not a Chinese-created hoax to kill American manufacturing. It’s real, it’s happening now, and all of us need to adapt. Regardless of which climate scenario you think is likely, be it 1° or 2°C in the next 50 years, sea levels will rise, it will be hotter, there will be more droughts, more flooding, more wildfires, more stress, and after a list like that, likely much more drinking. I’m not suggesting you invest in Seagram’s to compensate, though buying a houseboat might make some sense. If you’re going to buy a house, and you know location is the most important purchase factor, what do you do when one of the key elements of location, climate, is changing rapidly? Can you anticipate and plan around climate change?
The real estate cliché about “location, location, location” usually refers to issues like being close to good schools, close enough to work, near family. Clearly these are still important but looming climate change is a disaster on a scale that will make them seem quaint. For many of us, real estate is the biggest piece of our net worth so getting it right is crucial.
Sometimes when folks read or hear my recommendation for buying a house they think, “If one is good, two should be better, right?” Well, sorry, no. Please buy a primary residence for you and your family (be smart about it) but also please don’t buy a second one. The challenges that Jim Collins outlines for personal residences as an investment are surmountable for your primary home, but are very difficult to overcome for a second. Collins suggests renting is better than buying, but I think with smart choices, as detailed in the previous article, buying is the better choice. But for a vacation home, renting is definitely better than buying. Why?