Social Media and Financial Advice
Social media is ubiquitous. Everyone uses it, including us, and including you (if you’re counting podcasts)! This includes people who give financial advice, even if it’s not always the best.
Your favorite financial influencers, Erik Garcia, CFP®, BFA and Xavier Angel, CFP®, ChFC, CLTC, discuss different financial advice that’s given on social media, from crypto to life insurance, and why ultimately, you as the consumer ought to ask questions and be skeptical. In addition, they talk about peeing on Mardi Gras (a rather difficult problem for us folks in New Orleans), and why Erik’s daughter being excited for a “stinky feet coupon” shows good financial growth.
Episode Highlights:
- Erik mentions that he is planning and saving money for particular things, the majority of which are more long-term this year. (6:53)
- Erik defines liquidity and explains why it is important. (9:02)
- Xavier shares his feelings about individuals providing financial advice on social media. (11:40)
- Erik explains that most social media influencers are compensated by their followers, and they may not always be selling items, but rather offering advice that might be clickbait. (12:11)
- Erik explains what “get rich quick” schemes are and why people should avoid them. (14:29)
- Xavier mentions that individuals should be aware of and understand the risks associated with real estate. (17:27)
- Erik explains that certain TikTok influencers make you believe that everyone can be a day trader. (19:20)
- Erik mentions that some influencers persuade people that life insurance is the be-all and end-all product that would answer all of their financial difficulties and ambitions. (21:11)
- Xavier discusses the importance of knowing what a person hopes to achieve with life insurance. (23:36)
- Erik mentions that you should always ask questions and be extremely careful about who you trust to offer you financial advice. (24:51)
- Erik recommends that you receive and follow advice from individuals who understand your value and are working to ensure that the choices you make are in line with where you want to go in the long run. (28:05)
Key Quotes:
- “Ask questions, be a cynic. Whenever you’re taking advice from someone you do not know, who has not earned your trust, be incredibly cynical, and ask a ton of questions. And number one question you should ask is, what’s their motivation?” – Erik Garcia, CFP®, BFA
- “It is so important to work with a financial planner who knows and understands your values, who can help you build wealth in a way that’s consistent, and aligns with what gives you life and not what worked for someone else.” – Erik Garcia, CFP®, BFA
- “Ask questions and understand what you’re getting involved in.” – Xavier Angel, CFP®, ChFC, CLTC
