Who are you trusting with your financial future?
The rise of Fin-Influencers aka ‘financial influencers’ on social media is a dangerous trend. Why? Because when it comes to building wealth two important rules apply.
By Michael Mekhitarian
YouTube, Insta and Facebook ... and the dangers of bad advice
I was scanning the internet the other day and in a short space of time, I came across half a dozen advertisements, along the lines of: ‘How to build a multi-million dollar property portfolio using other people’s money’, ‘How to turn a house into a block of flats to increase rental income’, ‘How to minimise tax on property investments’ and ‘How to build a second income stream of $20k a month selling products on Amazon’ … the list goes on.
Right now, people are re-thinking the 9-5 grind. People are also looking at innovative ways to boost their savings and build wealth. But let me tell you, even with these as your aims — none of these is the solution you’re looking for.
How do I know?
Quite simply: BIG RISK.
All of the people spruiking money-making mirages as far as I could see, have nothing going for them in the way of experience, reputation or credentials. In fact, the only thing in their favour (if the social media ads are to be believed) is they got lucky, and now they’re telling the world about it.
Building wealth takes time and commitment
When you’re looking for ways to increase your income or build wealth, there are many things to consider.
But in weighing up any potential opportunity initially, you need to remember just two simple, but important criteria. These ‘rules’ will definitely help you to determine the difference between a good opportunity and a bad one. And they are:
Rome wasn’t built in a day, and,
If it sounds too good to be true, then it probably is.
Keep these as your mantras.
I know it sounds obvious, but desperate times (and Covid has presented many people with desperate times) often call for desperate measures. So, please, heed this advice.
The truth is, ‘get rich quick’ schemes are generally scams. That’s just the way it is.
Building wealth takes time. Slow and steady wins the race — because making a quick buck is one thing, but building sustainable wealth is another proposition entirely.
Last year thousands of people got caught up in the GameStop hysteria perpetuated by Reddit and other trading apps and online forums. Sure, some folks made some good money, that’s not to be disputed. Others lost. Because they took a gamble.
Investments should never be a gamble.
Don’t play with your money, make it work for you
Professional advice, from an experienced and trusted advisor should never be under-rated, either.
In Australia we have very tough laws and regulations underpinning the Financial Services and Advice Industry. These were tightened even further in the wake of the recent Royal Commission. And while that means a lot more paperwork for financial advisors, these laws and regulations provide important protections for consumers.
I can guarantee you that if you lose everything buying the ‘Golden Goose’ from someone via social media, then you’ll have no legal recourse.
So, forget the Golden Goose, but remember the golden rules: Rome wasn’t built in a day, and If it sounds too good to be true, then it probably is.
And if you do come across an opportunity that piques your interest, by all means, give us a call.
We’d be happy to have a look at it, and let you know if it looks legit.
Get the right wealth advice
At ATB, we have more than 60 years combined experience in helping people to achieve wealth, and a lifestyle that they enjoy. The real definition of wealth is having money to live life the way you want to, and ensure that you’re saving for retirement too.
We’ve navigated clients through the stock market crashes of the late 80s, the tech wreck in 2000, the GFC in 208-09, and we’re helping clients to weather the storms created by Covid-19. Much of this success comes from ensuring that our clients have diversified portfolios, and financial plans tailored to their individual circumstances.
And one thing that our clients really appreciate is that we too, are in it for the long haul. As a small business with a loyal team, we’re able to offer our clients consistent levels of service. Over time we get to know them, and we understand their goals.
And what’s more, we’re tax and accounting specialists too, which means that when you’re considering wealth-building strategies, we can consider the tax implications for you too.
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