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Moneytalk is everywhere.
But just because someone is loud (or confident) doesnt mean theyre right.
In fact, The New York Timesreportedthat financial advice on social media is growing and its also risky.
Bad advice doesnt always sound wrong, but it often comes from the wrong person.
If Someone Gives Advice Without Understanding Your Goals, Dont Take It
Good money advice isnt one-size-fits-all.
Be especially cautious with anyone whos quick to offer urgent advice, promises guaranteed returns or glosses over risk.
Thats not financial wisdom its a sales pitch in disguise.
What works for one person can be totally wrong for someone else.
That loss hurt not just financially, but also their confidence in investing going forward, Heerlein said.
Andrew Lokenauth, money expert and owner ofBeFluentInFinancesimilarly agreed on this point.
The biggest warning sign I see is when someone pushes get-rich-quick schemes, he added.
According to Lokenauth,good financial adviceshould be boring, methodical and focused on your specific situation.
Trust me on this Ive spent waytoo much timehelping people recover from following bad advice, he added.
A Clear Red Flag Is Someone Pushing a One-Size-Fits-All Approach
One of the biggest red flags?
When someone insists theres only one right way to manage money.
That kind of thinking drives financial experts like Lokenauth up the wall.
But they were 60 years old and planning to retire soon.
Financial advice should adjust to your goals not force you to fit someone elses mold.
Ive seen way too many people make rushed decisions because someone told them this opportunity wont last.'
He said thats aclassic sales tactic, not legitimate financial guidance.
Whereas, good investing takes time and careful planning.
Lokenauth emphasized that social media has made this problem so much worse.
You have a right to know whether their recommendations are in your best interest or theirs.
A qualified advisor takes the time to understand your full financial picture before offering guidance.
They build a strategy tailored to your goals, not someone elses idea of success.
For what its worth, thebest financial advisorsI know spend more time listening than talking, he said.
They ask about your goals, your timeline, your risk tolerance they actually care about what you want.
The best advisors arent just knowledgeable theyre honest.
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