A recent indictment from the Securities and Exchange Commission exemplifies why you should be vetting financial advice from influencers.
And this content is finding an audience, especially among Gen Z and millennials.
And the line between general education and encouraging risky behavior can be blurry.
In December 2022, theU.S.
Securities and Exchange Commission (SEC)chargedeight influencers with fraud in a $100 million stock manipulation scheme.
Be especially vigilant about advice about investing and purchasing stocks, which all carry some level of risk.
certified financial planner and founder and principal ofAvere Wealth Management
Specific stock and investing recommendations are also red flags.
And dont trust something just because it went viral.
Engagement numbers, like views and follower counts, arent a measure of reliability and skill.
Finance is not pop culture, Leahy says.
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He points out that people who dont hold these licenses arent held to these standards.
You dont see a lot of licensed people posting because everything has to be monitored, he adds.
They also have to disclose conflicts of interest.
Your bank might offer some free or low-cost services, too.
certified financial planner and founder and principal ofAvere Wealth Management
She recommends searching for advisors on reputable firms websites and through organizations that focus on individuals with specific credentials.
Federal and state government websites offer education tools, too.
The federal government also providesresources for investors online, and individual states may provide their own resources.
For example, Californias Department of Financial Protection and Innovation hastools for investors, too.
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