From TikTok to YouTube, financial influencers – or “finfluencers” – have emerged as the new, accessible faces of financial advice. These social media personalities offer quick tips on investing, real estate, cryptocurrency, and more, often with viral reach but little oversight. And while some are well-meaning, many lack the qualifications, experience, or fiduciary responsibility to guide real people through real financial decisions.
“Just because a piece of advice is going viral doesn’t mean it’s good advice,” says Jeffrey Fratarcangeli, founder and CEO of Fratarcangeli Wealth Management. “All too often, people will react emotionally to things they don’t fully understand, especially when it comes from a social post instead of a strategic plan.”
Jeffrey Fratarcangeli, who manages wealth for high-net-worth individuals, businesses and multi-generational families, says the long-term consequences of following advice from finfluencer content can be serious, but also avoidable. Here are four key risks he sees in the rise of finfluencer culture.
Viral Financial Advice Ignores Personal Portfolio Realities
A 30-second clip telling you to “sell this stock now” might rack up millions of views, but it can’t possibly take into account your unique financial profile. That’s where many investors get misled, Fratarcangeli says.
“There are so many variables that matter. For example, what percentage of your portfolio is in that stock? What’s your overall exposure to the stock’s sector? How does this decision fit into your long-term financial goals?” he explains. “None of those deeper questions will be addressed in an Instagram reel or TikTok.”
He points out that good advice always starts with the investor’s full picture, not just market conditions. At Fratarcangeli Wealth Management, his team asks clients probing questions, like whether they’re overallocated in a certain sector, or if the financial “advice” they’ve seen represents more than 5% of their assets, before any moves are made.
“We work with our clients to fully understand where their interests lie before we help them make any financial moves,” Fratarcangeli explains. “That allows us to create a more strategic framework for our clients’ financial decisions. If you’re making decisions without that kind of framework, you’re flying blind.”
Conflicts of Interest Are More Common Than You Think
Finfluencers aren’t bound by the same ethical and regulatory standards as registered advisors, and that opens the door to murky motivations behind their content.
“I always encourage my clients to look at how a recommended financial play is being talked about and ask, ‘Who benefits from this message?’” Fratarcangeli says. “In some cases, there’s an agenda that isn’t immediately obvious.”
Without broader context on who is giving the advice and why, investors are at risk of panic selling on one-off reports, only to watch the stock recover weeks later. These kinds of emotional decisions can cost people real money.
Emotional Triggers Make for Strong Engagement, Not Smart Decisions
Much of the content coming from finfluencers or even media headlines is designed to provoke, not inform. Fear, urgency, and bold predictions generate strong engagement, even if the underlying advice is shallow or misleading.
“These platforms are engineered to keep you scrolling,” Fratarcangeli says. “Fear and greed are the two emotions that work best, and they’re the worst reasons to make a financial move.”
He recommends that individuals check in with themselves emotionally before acting on any financial content.
“Ask yourself: What is this post making me feel? Am I reacting out of panic or the fear of missing out? What am I not hearing in this argument?”
By stepping back, he says, people can avoid being manipulated into poor timing or high-risk financial moves.
No Single Source Should Shape Your Wealth Management Decisions
One of the biggest red flags Fratarcangeli has seen from clients in the finfluencer era is their reliance on single-source information. Whether it’s a viral post or a professional report, he warns against letting any one opinion dominate your thinking.
“Even analyst reports from major institutions can get it wrong,” he says. “Good decision-making is about gathering multiple perspectives and understanding how they apply to your own personal goals.”
When clients come to him with content that’s caused confusion or concern, his approach is methodical.
“I don’t try to prove someone wrong, I just show them the other side. I lay out the rationale on both ends, then help the client make a decision based on their financial position, rather than someone else’s hot take.”
How Serious Investors Can Protect Themselves from Bad Advice
Finfluencer content isn’t going away, and for some, it can offer a helpful introduction to basic financial topics. But Fratarcangeli urges anyone managing significant wealth to think critically and proceed with caution when it comes to adopting finfluencer advice.
“Social media is entertainment, it’s not a strategy,” he says. “If you’re building wealth, protect it by working with professionals who understand your whole picture. That’s how smart decisions get made, and how long-term success is built.”
You can keep up to date with the market movements by following Jeffrey Fratarcangeli’s series on Fratarcangeli Wealth Management’s website.
