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Young investors are flocking to social media platforms like TikTok, Instagram and Reddit for financial advice.
In fact, one-third of Americans trust social media to help them make financial decisions, and 32% trust social media influencers and celebrities’ financial advice, a survey from investment firm TIAA found.
Navigating the slew of recommendations can be tricky.
“The key is to remember that bad advice is much more costly than good advice,” said Winnie Sun, co-founder and managing director of Irvine, California-based Sun Group Wealth Partners.
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While you can do background checks on investment and financial professionals through regulatory agencies, it’s harder to know the motivation of someone telling you to buy some purported up and coming hot stock.
“On social media, everybody can jump in, regardless of who they are, what their background is, what their experiences are,” said Sun, a member of the CNBC Financial Advisor Council.
If you are getting financial advice, especially on investing, through social media, here’s what to do.
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Financial advisors are trained on money matters, and many have a social media presence. According to a 2020 survey by Putnam Investments, 36% of advisor respondents had...
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