Can you trust financial advice from social media?
We’re living in a digital world. One of the benefits of this new digital world is access to information. Financial advice and investment advice are more abundant than ever, thanks to financial website apps and social media platforms. From TikTok to Twitter, it’s easy to find a wealth of information on various investment strategies, tips, and trends with just a few clicks or swipes of the finger.
A recent survey found that talking about investment and finances on social media has made it less taboo to talk about money (76 percent felt that way). Just under 80 percent (79 percent) of millennials and Gen Z Americans have gotten financial advice from social media!
However, while social media can be a source of advice, it’s essential to balance these with the expertise of trusted and experienced financial professionals.
“Social media platforms offer a diverse array of investment content, ranging from informative videos and articles to personal anecdotes and opinions,” says Patricia Klein, Assistant Branch Manager at David Lerner Associates, Inc.“While these platforms can be a great starting point for individuals looking to learn about investing, it can be difficult to know what makes sense for you and what is just misinformation.”
It’s crucial to approach social media investment advice with a discerning eye. While some creators may offer sound advice based on their expertise and experience, others may lack the qualifications or credentials to provide reliable guidance. Additionally, the fast-paced nature of social media can lead to oversimplified explanations or exaggerated claims about investment opportunities, potentially leading inexperienced investors astray.
This is where professional investment counselors play a vital role. Unlike social media influencers, these counselors are trained professionals with in-depth knowledge of financial markets, investment strategies, and risk management. They work closely with you to understand your unique financial goals, risk tolerance, and time horizon. Most importantly, they create personalized investment plans tailored to your unique needs and circumstances.
Moreover, investment counselors offer more than just financial advice; they provide ongoing guidance, support, and accountability to help you navigate the complexities of investing. Whether it’s adjusting asset allocations, rebalancing portfolios, or staying disciplined during market fluctuations, counselors offer vital expertise and perspective that can help you stay on track toward your long-term financial objectives.
While social media can be a good starting point for learning about investing, it’s essential to approach it with caution and skepticism. By leveraging the insights gleaned from social media platforms and supplementing them with the expertise of trusted investment counselors, it is possible to navigate the complexities of investing more effectively, ultimately increasing your chances of achieving long-term financial success.
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.