EXPERT FORECAST : BANKING AND FINANCE
SPOTTING ‘ FINFLUENCER ’ RED FLAGS : TIPS FOR IDENTIFYING CREDIBLE FINANCIAL ADVICE ONLINE
The rise of the ‘ finfluencer ,’ a term combining the social media influencer and finance advisor , brings both an array of misinformation and too-good-tobe-true hacks whilst potentially making alternative and lesserknown information and methods on financial decisions more accessible . Jeff Sekinger , Founder of Nurp , gives his hot tips on how to navigate the otherwise confusing world of online financial advice .
Data shows that young professionals turn to social media for financial advice for various reasons . Thirty percent of US adults say their parents do not teach them lessons on building financial wealth . Often , instead of consulting credible financial advisors , they turn to social media and get overwhelmed and swayed by influencers who capitalise on unverified financial advice , and it ’ s easy to fall prey to their misleading or outright harmful agenda .
No wonder get-rich-quick schemes are resurfacing for the nth time . Coupled with these social media influencers ’ hot takes on managing money and their social influence , this makes a very powerful bait .
Having worked in finance for a while now and interacting with over a million online audiences has given me a new perspective on the amount of financial advice available out there . While some of it is helpful , I ’ ve also seen a concerning amount that can be confusing or even misleading . Unsurprisingly , more than ever , distinguishing what ’ s credible from what ’ s not has become very challenging for individuals with little to no experience in the financial industry .
Therefore , financial literacy is important for making informed decisions that impact your future . Whether you ’ re a young professional or a first-time investor , understanding at least the basic financial principles can help you get started in exploring the tricky , modern financial industry .
Look out for these five red flags in financial advice
1 . Overly complicated solutions
A lot of financial products can seem extremely confusing and complex . While some are , most are not . It is important for every investor to understand what they are investing into , why it has value , how it generates yield and what fees are involved . I see too many people hear about an opportunity , make a quick decision before they understand it , then end up losing money or paying exorbitant and unnecessary fees .
2 . Promises of high returns with no risk
There is no such thing as a high return with no risk . If someone promises you sky-high www . intelligentfin . tech
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