Where Does Your Financial Advice Come From?
Financial advice can be found anywhere on the internet. Social media has financial gurus and others not known for financial expertise speaking on the best investment for you. Talking heads show up on television news programs suggesting many stocks and investment recommendations. But are these good for you?
The headlines of the past couple of weeks has had me stand up and take notice. Though I usually cringe when I see the likes of actor Matt Damon promoting crypto or former football star Joe Namath pitching for Medicare Advantage.
Celebrity promotion may be changing. First Matt Damon was bashed for his television promotion of a crypto company. Fortune Favours the Brave | Crypto.com. Then crypto prices dropped and he seemed to apologize by creating his own ad about “Almosts” – though only seen on Steven Colbert, not the Superbowl advertising audience. He knew he made a mistake.
The number at the end of the “Broadway Joe’s” ad seemingly for Medicare? That rings at an insurance company and not at a Medicare office. Anyone wanting to get coverage or chose a new plan wants to be sure to check with an objective source before making a decision because once chosen you are stuck with the plan for a year. Awareness that Medicare Advantage is an insurance option open to all but actual benefits depend on the plan you chose. Joe Namath missed the goal post on that one.
Last week I felt justice was done by the Securities and Exchange Commission (SEC) which monitors all investments and professional financial advisors. Kim Kardashian was fined $ 1.3 million dollars for not revealing on Instagram she was paid for her post on cryptocurrency. Kim Kardashian to Pay $1.3M to SEC for Crypto Touting | ThinkAdvisor
Marketing is dangerous. Celebrities are touting all sorts of products. The combination can be detrimental to your finances.
Be careful where you get your financial advice. I am always reading about who on television may not have been honest with the audience. CNBC Personality Charged With Securities Fraud (fa-mag.com)
Check the advisors experience, education and objectivity, not their celebrity status. Just because a financial company is on television or on social media or well known, does not necessarily mean the investment is good for you. Their presence simply means they have a large amount of marketing dollars.
Certainly there are bad apples in the investment industry but after thirty years in the industry that is the exception rather than the rule. This does not mean you cannot protect yourself and should even if someone has come highly recommended. Former Wells Fargo Advisor Faces Two Years In Prison For Identity Theft (fa-mag.com)
When you are ready to seek out financial guidance, be willing to do the footwork and even pay for good advice. Two organizations come to mind: NAPFA and Garrett Planning Network.
There are other reputable organizations as well:
Ask the advisor if they are a fiduciary, meaning they have your best interests in mind. MoneyPeace Blog Post: Fiduciary
And be sure to check their past history with the SEC and any state organizations.
IAPD - Investment Adviser Public Disclosure
If someone is selling Fritos, there is a small cost and risk if you make a purchase. However, your hard earned retirement dollars need sound investment knowledge and decision making. Be sure to vet your investment advice before you make a big mistake.