Your Bro Gave You Investing Advice Over Thanksgiving? Take It with a Grain of Salt
Looking for sound financial investments? Some experts caution: Don’t get by with a little help from your friends.
Family, buddies, and coworkers are great for getting advice on things like going for that promotion, finding a good realtor, or whether you’re using ‘fleek’ correctly in a sentence (and I wasn’t, thanks for the assist, guys!). But some advice should go unheeded, or at least be taken with a big grain of salt.
Tanza Loudenback at Business Insider recently spoke with Katie Brewer, Dallas-based CFP and founder of Your Richest Life, to discuss getting investment advice from friends and family, and why you should proceed with caution:
Problem is, while they mean well, you can’t know for certain if your BFF did their due diligence—scouring over white papers, researching industry trends, and generally getting to know the investment—you only know they think it is a good idea. That isn’t enough to throw in your hard-earned dollars.
On the other hand, they might have all the experience needed to be offering great advice, but that advice doesn’t jibe with your lifestyle or your financial planning. Your father-in-law might make a ton of money flipping real estate, trading penny stocks, or running an alpaca farm, but if you don’t have the time (or the same mindset), it won’t work out the same for you.
So how can you tell? Do the work. If something piques your interest, research. Once you’ve got all the facts, you’ll be in a better position to decide.
Want more help dodging bad advice? Check out the rest of “A Financial Planner Explains How to Avoid Making a Bad Investment” at Business Insider.