5 Ways to Know If Trending Financial Advice is Legit or Not
You can see a good deal of trending financial advice these days. They are all over social media, and if they get too hyped, even the news media will have stories on them. You may even find them promoted by a licensed money lender.
So how would you know if that latest piece of financial advice is legit or if it’s just a fad? Keep these five things in mind to find out.
Check the Source
Where does the advice come from? The most trustworthy sources include the Monetary Authority of Singapore (MAS), Credit Bureau Singapore (CBS), and licensed professionals like Certified Financial Planners (CFPs) or Certified Financial Analysts (CFAs). Major banks are also trusted sources of financial advice.
But if the advice comes from celebrities or influencers—especially those who have little knowledge of the financial industry—better watch out. They may just be overhyping the advice to earn money out of it. Read another trending article, Global Stock Market.
Is There Any Pressure to Act Fast?
High-pressure tactics are another sure sign that a piece of financial advice is too good to be true. Financial advice should remain as advice, with no pressure on anyone to take it.
Anytime you are constantly badgered to act now, it becomes a lousy sales pitch. It is no longer financial ‘advice’. Chances are you will be told to purchase some product that will make you rich. Other times, some ‘wealth coach’ will pressure you into buying their course or joining their exclusive membership group. Check out our comprehensive article on Business Line of Credit for additional information.
Are there Any Guaranteed Returns?
No sound investment will guarantee a certain percentage or amount of money in return. The market is not 100% predictable, so no one can tell the exact amount of money you will gain when you invest in something.
Anytime you see any ‘investment’ or ‘business opportunity’ that promises you will earn a specific amount in a certain number of months, it’s most likely a scam.
Look at the Historical Data
Does the ‘advice’ or ‘investment’ have a history of success? Have previous investors actually gained something?
Legitimate investments usually have a history of returns that you can examine. When you look at the historical performance, you should see fairly consistent returns. There may be peaks and valleys, but overall, the trend in returns should be more or less consistent. Trustworthy investments often show this kind of historical pattern. Enhance your understanding by reading our in-depth post on Small Businesses Using Influencer Marketing.
Listen to Expert Opinions
The best sources of advice are financial experts, like the CFAs and CFPs. Follow those kinds of people on social media, and look at their opinions on the latest financial advice. You know something is a fad when a lot of them are saying be careful or stay away from it.
It’s also a good idea to pay attention to credible media sources like Channel News Asia (CNA) or The Straits Times. You can find in-depth analyses of the latest financial trends on these media outlets, conducted and vetted by financial experts as well.
Conclusion
Trending financial advice can be tempting to follow, especially if they say you’ll get rich. But watch out for fads—or worse, scams—that are only there to siphon off your hard-earned money. Keep these five things in mind to find out whether any financial advice is legit or not. You can visit influencersgonewild for more trending posts.
