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For young investors, social media rules.
In fact, it is the most popular way they are researching investment ideas, according to a new CNBC/Momentive Invest in You survey.
Thirty-five percent of 18-to-34-year-olds said they use social media to look into possible investments, while 25% cited conversations with family and friends, and 24% said financial guidance or investment websites.
Only 7% said they gather research through direct discussions with a broker or financial advisor.
However, financial experts warn that if you are going to get advice from TikTok, Instagram or another platform, do additional homework.
Professionals can be vetted through background checks, but it is harder to discern the motivation of someone making stock recommendations online.
“On social media, everybody can jump in, regardless of who they are, what their background is, what their experiences are,” Winnie Sun, co-founder and managing director of Irvine, California-based Sun Group Wealth Partners.
Here’s how to navigate the slew of recommendations.
Find financial experts
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 hosted or participated in a LinkedIn Live session, for instance.
Vet those you follow. Brokers and brokerage firms can be looked up on the Financial Industry Regulatory Authority website and investment advisors can be...
Read Full Story: https://www.cnbc.com/2021/08/26/social-media-top-pick-of-young-investors-for-ideas-cnbc-survey-finds.html
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