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‘FINFLUENCERS’ ARE ON THE RISE: WHY YOU SHOULD BE WARY OF FINANCIAL ADVICE ON SOCIAL MEDIA Not all financial advice posts on social media will lead you into a scam, but you need to be able to differentiate between what is in your best interests and what is not, writes VERNON PILLAY THERE are many conversations to be had around how you manage your money. The problem is that opportunists are everywhere and you should arm yourself with the knowledge of what constitutes good advice. On social media, some of the information you receive from online forums will be bad, some of it will be good. But, it’s good to remember that having a large following doesn’t equal credibility. Many investors, whether starting their journey or heading into retirement, fall prey to social media financial advice because they do not have a solid financial plan. A good, independent
financial adviser will explore your unique set of circumstances and implement a long-term investment strategy to help you reach your financial goals. Everyone can benefit from having an adviser as a partner on their financial journey because, while most people are emotional about their own money, a financial adviser will be rational. You need to distinguish between a social media influencer and a financial adviser. There are many wonderful lessons that can be provided on social media platforms. Want to learn how to do the latest viral dance moves? That’s the place to do
it. Want to see how to prepare some simple and delicious meals? Watch a few videos and have a go. However, when it comes to your finances, Janine Horn, a financial adviser at Momentum, says even billions of views don’t necessarily equal good advice. “Social media influencers are a powerful force in today’s economic engine, but there are dangers to seeking financial advice from someone who may not have an understanding of your personal situation, the country you live in, or even the financial challenges that are unique to your life.” Horn says this is backed up by the fact that a leading
