Avoid “FOMO” when seeking financial advice online
By Jennifer Empey, CFPⓇ 22 March 2022 1 min read
Social media is a quick and easy way to learn about any topic under the sun, including financial planning. While there is plenty of information available to increase your investing IQ, there’s also no quality control, so it’s critical to check the credibility of the source. Can the author back up their financial advice with real professional training and experience in the field? Do they make their money working with clients on financial planning, or by getting followers? Have they disclosed if they are being paid to promote a particular product or service?
We recommend starting with a financial advisor to create a financial plan and budget that will help you turn your earning power into capital to meet your financial goals. But like social media, there are things you should watch out for in the real world as well.
Job titles like ‘financial advisor’ and ‘financial planner’ are used broadly in Canada, and not all provinces fully regulate these titles. Ensure any advisor you are seeking advice from has the right education, training and experience in the field. The Financial Consumer Agency of Canada has published guidelines on how to choose a financial advisor.
When searching for information on social media don't fall into the FOMO (fear of missing out) trap. In a recent interview with Investment Executive1, Neil Gross, chair of the Ontario Securities Commission’s Investor Advisory Panel, said that investing in a popular stock to avoid being left behind is not a new phenomenon, but “social media puts FOMO on steroids.” The meteoric rise and fall of GameStop and AMC Entertainment Holdings Inc. shares are recent examples. He cautions that social media is “mostly just gossip.” So exercise a healthy amount of skepticism if you are reading financial advice posted on less credible sources.
If you’re not yet ready to meet with an advisor but want to continue some self-directed exploration of financial advice online, you may want to check out learning and tools available on the websites of regulatory bodies that govern industry professionals, such as Canadian Securities Administrators, or FP Canada's website dedicated to Financial Planning for Canadians.
You may also be interested in:
What to know about online trading platforms
Three things to consider when investing using an online investment platform.Read article
Four tips to thrive as a gig worker
We offer savings and insurance tips to help set gig workers up for success.Read article
Buying versus renting your home
Owning a home or renting, which is the better choice for your future?Read article
How to harness your earning power
Find out how to start ‘paying yourself’ for those big goals down the road.Read article
Source: Investment Executive news, Don't let FOMO from social media affect your investing decisions
ATB Wealth® consists of a range of financial services provided by ATB Financial and certain of its subsidiaries. ATB Investment Management Inc., ATB Securities Inc., and ATB Insurance Advisors Inc. are individually licensed users of ATB Wealth. ATB Securities Inc. is a member of the Canadian Investor Protection Fund and Investment Industry Regulatory Organization of Canada.
The information contained herein has been compiled or arrived at from sources believed to be reliable, but no representation or warranty, expressed or implied, is made as to their accuracy or completeness, and ATB Wealth (this includes all the above legal entities) does not accept any liability or responsibility whatsoever for any loss arising from any use of this document or its contents. This information is subject to change and ATB Wealth does not undertake to provide updated information should a change occur. This document may not be reproduced in whole or in part, or referred to in any manner whatsoever, nor may the information, opinions and conclusions contained in it be referred to without the prior consent of the appropriate legal entity using ATB Wealth. This document is being provided for information purposes only and is not intended to replace or serve as a substitute for professional advice, nor as an offer to sell or a solicitation of an offer to buy any investment. Professional legal and tax advice should always be obtained when dealing with legal and taxation issues as each individual’s situation is different.
ATB Wealth experts are ready to listen.
Whether you're a beginner or an experienced investor, we can help.