Financial advisor on the danger of letting social media influence your investing habits

In the era of social media influencers, some investors are turning to platforms like YouTube, TikTok and Instagram for answers to their most pressing financial concerns.

But advisors recommend scrutiny when seeking guidance online — especially when weighing money decisions with the possibility of harmful consequences.

“Because social media is democratized and everybody has a voice, it could be a particularly messy place,” said Douglas Boneparth, a certified financial planner based in New York, who is active on Twitter with nearly one quarter of a million followers.

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Boneparth, who is president of Bone Fide Wealth and a member of CNBC’s Financial Advisor Council, said when sifting through social media advice, it can be difficult to know who to trust and whether the information is accurate.

Despite these risks, social media has become the most popular source of investment ideas for younger investors, according to a CNBC survey, based on a poll of over 5,500 U.S. adults in 2021.

Why ‘due diligence’ matters with social media

Don’t hesitate to seek personalized advice

Post source: cnbc

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