Read More

OneDigital Retirement + Wealth Adviser Discusses the Impact of Social Media on Financial Advice for Employees

Almost 40% of people are looking for retirement or financial advice on social media platforms.

Social media is becoming one of the most dominant new sources for people. According to a study by Pew Research, nearly half of Americans get some news on social media regularly. With people more likely to use social media as a resource, it is becoming a place for many other things, including financial advice. OneDigital’s Retirement and Wealth Adviser Keith Huber remarks, “The viewer wants instant gratification: tell me in 30 seconds how I’m going to be a millionaire.” The problem is that there are no standards that the “social media advisors” have to follow. They do not have to follow any guidelines and are not considered fiduciaries under any circumstances. Therefore, your employees may be using social media as their primary way of absorbing financial content, and the person they’re receiving this information from may not have their best interest at heart.

The average Tik-toker isn’t trying to make the world of finance a better place. It’s really just marketing, and sometimes that’s perfectly fine, but other times, they won’t talk about the math of how contributing $50 a month turns into a million dollars.

It's just so important to get that unbiased, independent advice where that individual has nothing to gain, whether or not you follow it. Knowing that it’s been vetted by the employer and that the advice is in your best interest, and it’s not just coming from scrolling or headline grabbing.
Keith Huber, Investment Adviser, Fiduciary Plan Advisors a OneDigital Company

Knowing where your financial advice is coming from is very important. That is why it is best to take the advice you may see on social media with a grain of salt. There may be some helpful tips on there. But much of this employee education falls on the shoulders of employers. To know their employee population and how best to educate them on the benefits available to them is vitally important.

Read the Employee Benefits New article here.

Want to read more from Keith Huber? Check out his recent article: Keith Huber of Fiduciary Plan Advisors Discusses The Advantages of a Customized Financial Wellness Plan.

Investment advice offered through OneDigital Investment Advisors, an SEC-registered investment adviser and wholly owned subsidiary of OneDigital.