Ah, reality TV—where else can you watch people attempt to find love by “marrying” a stranger? The charm of these shows lies in their unscripted nature, allowing viewers to connect with “real” people navigating “real” problems.
You might be thinking ‘Who would ever listen to a reality TV star?’. Unfortunately, it’s far more common than you might think.
A 2024 report found nearly half of consumers make purchases based on influencer recommendations. These influencers have mastered the art of making us feel like we need whatever they’re selling—be it a trendy pair of shoes or a dubious investment tip.
Some have even promoted dodgy trading schemes—risky ventures that are both illegal and subject to severe penalties.
Why influencer financial advice is problematic
Influencer endorsements aren’t new.
Celebrities have long promoted products, sometimes disastrously. Remember when doctors endorsed cigarette brands? Clearly, fame doesn’t equal expertise. In finance, the stakes are even higher. Unqualified investment advice can lead to significant financial loss, so it’s crucial to distinguish between genuine financial advisers and those riding their fame wave.
Spotting fake financial advice
Here are some red flags to help you dodge bad financial advice:
- The ‘enviable’ lifestyle: Influencers often flaunt luxury cars, private jets, and exotic vacations. This exaggerated portrayal is designed to lure you in. Be skeptical of anyone whose primary selling point is their supposed wealth.
- Exclusive or limited offerings: Offers that claim to be available for a limited time or to a select few play on your fear of missing out (FOMO). Don’t rush into decisions without proper consideration.
- ‘Guaranteed’ returns: Promises of guaranteed high returns are a big no-no. Legitimate investments come with risks, and credible advisers won’t offer sure things. If it sounds too good to be true, it probably is.
Encouraging conversations with young adults
It’s vital to have open conversations with young adult children about financial advice.
Remind them that reality TV stars and influencers often lack the qualifications to offer sound financial guidance. Encourage them to seek advice from credible sources and not be swayed by flashy social media posts.
Seeking professional financial advice
Imagining a luxurious life based on an influencer’s tip is tempting, but there are no shortcuts to financial success. The best way to secure your financial future is through careful planning and professional advice.
At Capital Partners, we focus on your long-term financial health rather than quick wins. Our team is committed to building a robust financial strategy that aligns with your goals and risk tolerance. As the only CEFEX-certified firm in Western Australia, we’ve been helping affluent families for 25 years. If you’re curious about how we can help you, schedule a complimentary discovery call.
Trusting a qualified fiduciary adviser offers the expertise and stability needed for true financial success—far beyond what any reality TV star can provide. So, next time you see a reality star doling out financial advice, remember: the only thing they might be experts at is staying in the spotlight, not managing your money.
