Want to be poor? Take financial advice from TikTok (satisfaction guaranteed!)
It is probably best to ignore financial “advice” you get on social media, says Nomi Bodlani (Head of strategic markets at Allan Gray).
Steer especially well clear of a new fad on TikTok called “FinTok”, she says.
“Taking financial advice from online social platforms often has devastating consequences,” warns Bodlani.
These TikTok posts invariably oversimplify investing and make it seem easy to earn a fortune.
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Arabile Gumede (in for The Money Show’s Bruce Whitfield) asked Bodlani to elaborate, and for advice on not falling prey.
In a nutshell:
No legitimate investment will require you to recruit others.
Be wary if you do not understand or see how returns are generated.
Steer clear if an investment is sold as a “once-in-a-lifetime opportunity”.
Does the investment provider have a proven track record and is it registered with the Financial Sector Conduct Authority?
If it is too good to be true, it probably is.
You might think you won’t be caught… People are genuinely looking for information… How do you make sure it's credible?Nomi Bodlani, Head of Strategic Markets - Allan Gray
It’s highly possible that you’ll see someone you trust endorse a product… Trust your gut. If it seems too good to be true, it probably is…Nomi Bodlani, Head of Strategic Markets - Allan Gray
Do a bit of homework… Are they registered…? … Do they have a track record? …Nomi Bodlani, Head of Strategic Markets - Allan Gray
For more detail, listen to the interview in the audio below.
Source : https://www.123rf.com/photo_141572620_kharkov-ukraine-february-16-2020-tiktok-application-on-samsung-smartphone-screen-and-dollar-bills-ti.html?term=tiktok%2Bmoney&vti=np9bjs4vx7rarqkt6h-1-43
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