Faith-Based Investing for Retirement: How to Align Your Portfolio with Your Values Without Sacrificing Returns

• BRI funds screen out companies based on moral criteria. Common screens include abortion and abortifacients, pornography, alcohol, tobacco, gambling, and anti-family entertainment 1.
• ESG (Environmental, Social, Governance) focuses on sustainability and corporate responsibility. BRI focuses on Biblical moral standards. The two overlap on some screens (alcohol, tobacco, gambling) but diverge on others (ESG does not screen for abortion or pornography) 2.
• Timothy Plan, one of the oldest Biblically Responsible Investing mutual fund families (launched in 1994), screens out companies involved in abortion, pornography, alcohol, tobacco, gambling, and anti-family entertainment 1.
• Eventide takes a different approach: rather than just avoiding harm, they invest in companies that create compelling value in areas like healthcare, technology, and education 4.
• Faith-based funds are available as mutual funds and ETFs. Inspire offers faith-based ETFs with lower expense ratios (as low as 0.09% for the Inspire 500 ETF to around 0.35% for some focused ETFs) compared to actively managed BRI mutual funds that range from 0.69% to over 1.4% 3.
• Kingdom Advisors is a global community of Christian financial professionals with a searchable member directory for finding faith-aligned advisors at kingdomadvisors.com 6.
• How to start faith-based investing in your IRA or 401(k): if you are searching for Christian retirement investing, Biblically Responsible Investing for retirees, or faith-based 401(k) options, the practical starting point is the same. Clarify your convictions, audit your current funds, and then swap into BRI or faith-based ETFs and mutual funds inside your existing IRA, Roth IRA, or employer plan where available.

Faith-Based Fund Families Compared

Expense ratios as of early 2026, sourced from fund prospectuses, Morningstar, and fund websites. Compare with S&P 500 index fund expense ratios of 0.03% to 0.20%. Higher fees on actively managed BRI funds reflect screening and research costs. Verify current rates directly with each fund provider [1][3][4][5].

BRI vs ESG vs SRI: What Is the Difference?

These approaches overlap in some areas (alcohol, tobacco, gambling) but have distinct screening priorities. BRI is the only approach that specifically applies Biblical principles to investment decisions [2].

Step 1: Clarify Your Values

• Write down the 3 to 5 issues that matter most to you. Common priorities include sanctity of life, family values, creation care, justice, and honest business practices.
• Decide whether you want strict avoidance (no investment in objectionable companies) or positive impact (investing in companies doing good) or both.
• Discuss with your spouse or family. Your portfolio should reflect shared values, not just one person's convictions.

Step 2: Audit Your Current Portfolio

• Review your 401(k), IRA, and brokerage holdings. Many retirees have no idea what individual companies their mutual funds own.
• Use tools like Inspire Insight (free) or As You Sow Invest Your Values to check your current funds against faith-based screens.
• You may be surprised: a standard S&P 500 index fund includes companies in alcohol, gambling, and entertainment industries you may find objectionable.

Step 3: Choose Your Faith-Based Investment Approach

• Strict BRI screening (Timothy Plan): best for investors who want to avoid any exposure to objectionable industries.
• Positive impact (Eventide): best for investors who want their money to actively fund companies creating value for the world.
• Low-cost ETFs (Inspire): best for cost-conscious investors who want faith alignment without high expense ratios.
• Blended approach: many investors use faith-based funds for equities and standard funds for bonds, balancing values alignment with cost.

Step 4: Evaluate the Cost of Values Alignment

• Faith-based funds have higher expense ratios than passive index funds. BRI ETFs like the Inspire 500 charge as little as 0.09%, while actively managed BRI mutual funds range from 0.69% to over 1.4%. Passive index funds charge 0.03% to 0.20% 31.
• On a $500,000 portfolio, the difference between 0.10% and 1.00% in fees is $4,500 per year. Lower-cost BRI ETFs narrow that gap considerably.
• Decide what that peace of mind is worth to you. Many faith-driven investors say the cost is small relative to the alignment they gain.
• Performance varies by fund. Some BRI ETFs, such as the Inspire 100, have tracked closely to the S&P 500 over time. Actively managed BRI mutual funds show more variation 3.

Step 5: Implement in Your Retirement Accounts

• IRA or Roth IRA: you can invest in any faith-based mutual fund or ETF. Simply open an account at the fund family or a brokerage that offers them.
• Rollover 401(k): if you have left your employer, roll your 401(k) to a self-directed IRA where you can choose faith-based funds.
• Current 401(k): ask your HR department if faith-based fund options are available. GuideStone and Timothy Plan offer employer retirement plans.
• Consider working with a Kingdom Advisors certified financial planner who specializes in faith-based retirement planning.

From Grace

Here is what I have learned from talking with hundreds of people about faith and money.

• There is no single "right" faith-based portfolio. Your convictions are personal. What matters is that your investments reflect what you believe, not what someone else tells you to believe.
• Do not let perfect be the enemy of good. Even moving 50% of your portfolio to faith-based funds is meaningful. You do not have to switch everything overnight.
• The conversation about values-aligned investing often opens deeper conversations about legacy, generosity, and purpose. That is where the real transformation happens.

Grace is an AI educational tool, not a licensed financial advisor. This content is for informational purposes only and does not constitute financial, tax, or legal advice. Always consult a qualified professional for decisions specific to your situation.