Misinformation on Social Media Boosts Demand for Planners

Financial advisors report that inaccurate financial advice on social media and answers from open-source large language models are prompting more people to hire professional planners for clear, personalized guidance.

Millions of short videos on platforms focus on investing, ETFs, debt management and quick-wealth schemes. Talker Research found the average viewer of financial short-form video spent more than 400 hours on the platform in 2025. S&P Global data show about one-third of adults worldwide understand core financial concepts. A CFP Board survey found 75% of respondents had sought financial advice online in the prior month.

Advisors say a large share of the online content is incorrect or misleading. Allan Boomer, chief investment officer at Momentum Advisors, estimates roughly three-quarters of the financial posts he sees on social media are wrong. A separate analysis found about three out of four TikTok videos offering financial advice did not clearly disclose professional credentials.

The kinds of recommendations circulating online range from broad financial tips to high-risk trading ideas. Uchechi Kalu, founder of Greenlight Financial Planning in Los Angeles, pointed to frequent promotion of forex trading, derivatives and aggressive side hustles that many planners would not recommend. Economic pressure makes some of these options more attractive to viewers trying to stretch limited funds.

Some viral claims are technically true but omit conditions that limit their usefulness. Kalu described a client who asked about a clip saying funds in a 529 college-savings account could be rolled into a Roth IRA at age 18 and grow substantially. The transfer cited in the clip applies only under specific rules and assumes long-term contribution and employment patterns that many families do not meet.

Survey data indicate credentialed advisors remain more trusted. The CFP Board found 74% of respondents were very comfortable implementing advice from credentialed wealth advisors, compared with 37% who felt the same about social-media-based advice.

Planners report spending more time answering clients’ internet-sourced questions and building relationships so clients consult them first. Boomer framed that work as part of an advisor’s role: ‘Part of the value of a financial advisor is for the clients to utilize our time.’

Advisors also point to new challenges from artificial intelligence. Open-source large language models can generate plausible, tailored-sounding answers that may persuade users. Kalu said AI can deliver personalized planning in ways individual social posts cannot, while Boomer warned those systems often reflect user preferences rather than provide necessary checks.

Advisors describe their main contribution as narrowing options and recommending what fits a client’s specific situation. Kalu offered a direct approach for handling online claims: ‘Just say no. This is your specific situation. This is what you should be doing.’

Advisors contacted for this report said the surge in online content has increased demand for professional services as more clients seek clarification, rule details and individualized recommendations.