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It may be hard for some to take the frequently cited advice that financial advisors offer: Hire a financial advisor. It seems self-serving; “of course the financial advisor wants me to hire them!” Regardless of the reasons, there’s pervasive resistance toward financial advisors – even when recognizing that money help is needed and that the services of a financial advisor can pay off.
On Monday, July 24, Northwestern Mutual released new data that found two-thirds (66%) of Americans (66%) believe their financial planning needs improvement, and that Americans with a financial advisor are much more confident about their financial future – yet only 37% work with one.
Consumers are valuing TikTok and other social media platforms as places to tap into wisdom about personal finance, instead of enlisting the services of a financial advisor. Younger generations are especially invested in this avenue, with 4% of millennials and 6% of Gen Zers saying that social media is their most trusted source for financial advice.
Though you can certainly find financially savvy influencers on TikTok and other social media sites, these platforms really should not be a replacement for a financial advisor. Let’s consider 3 reasons why using a financial advisor is better than following TikTok advice for Gen Z and millennials and really anyone else.
Social media finance superstars are not sitting down with you in a one-on-one capacity. They’re not even really talking to you, usually. Their goal is to respond to the masses. A financial advisor will patiently review and assess your finances in an up close and personal way so that you both have a crystal clear picture of what is needed for your financial health. This can be priceless.
How old are you? What does your investment portfolio look like now? What age do you hope to retire? How much is in your nest egg? Do you own a house? Have you paid off your mortgage? The list of questions that need to be asked of you in order to gain total insight into your financial life and future. Can a social media influencer, no matter how generous and smart, really give you the tailored guidance you need to move forward in a way that will ensure financial success? It’s highly unlikely.
They Have No Ulterior Motive
Social media influencers may have great insights at times, but they do, typically, have an ulterior motive: they want to gain followers. Sometimes they even want to promote investments that they themselves are invested in. Financial advisors aren’t (or should not be) interested in popularity, and they certainly won’t tell you to buy stocks, crypto or anything else just because they have personally benefited from it or want to see it thrive.
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