I participate in several social media – heck my company Sabre Wealth uses several platforms to educate clients and others about personal finance and investing. It may seem obvious… but social media is also full of bad financial advice.

What’s being called ‘FinTok; Financial TikTok is one of the most popular sources for financial information and advice, particularly among GenZ. Investment firm Edelman reports that nearly 30% of those getting advice on FinTok have fallen for financial guidance that was false or misleading. And 20% have fallen for misleading financial content multiple times.

Generation Zers (Zoomers) who were born late ‘90s to @ 2010 are about five times more likely than adults in their 40’s and older to get financial guidance from social media. It’s good to have such an accessible source of financial advice and tips… but there’s also room for bad information and even fraud.  

Several pieces of advice that I ran across are just plain dumb. One tells their 1mm followers to ‘copy the investments of millionaires’. Heck, it worked for them, right? Jeesh… every investor has a different risk tolerance and need for income or growth. Wealthy investors can afford to lose in a downturn, their trading costs may be much less because of greater volume and they may invest for entirely different reasons.

Here are a few more: “Cryptocurrency will make you wealthy”, “Retirement accounts are a waste of time.” “Put it all in Gold and Silver.” “DayTrading is the quickest way to get rich.” “Use life insurance to buy real estate.” These may sound logical, but every investment strategy needs to fit the investor’s specific needs. 

Before taking any advice – vet the source by considering the source of the information, and their motivation. Look at their qualifications. And, if it seems too good to be true… trust that it is.

Understanding Your Investment Goals

Before diving into stocks, bonds, or ETFs, ask yourself: what are your financial goals? Retirement, education, or growing wealth? Your objectives will guide your strategy.

Assessing Your Risk Tolerance

Not all investments are created equal, and understanding your comfort with risk is key. Diversifying your portfolio can balance the thrill of high-risk investments with the stability of safer options.

Staying Informed

Markets change, and staying informed is critical. Follow trusted sources, explore innovative tools, and consider working with a Certified Financial Planner™ to tailor your investments to your needs.

Remember, the path to financial freedom starts with a plan. Follow DonGrant.com for tips and insights on building a portfolio that works for you.