Should You Take Financial Advice From TikTok?
In this video, Matt shares some non-financial advice after watching a TikTok Video that also does not give financial advice but really still does.
There are tons of people out on social media giving business advice. Some of it is good advice, but most of it isn’t good. In this series watch CapForge’s owner react to different advice videos. He’s an expert in all things business and has 20+ years of experience under his belt. Some of the things he reacts to might even surprise you!
Business Advice Video:
You know how rich people say to spend other people’s money? Let me give you an example of what that actually looks like. I grew up really poor and I was taught that talking about finances is trashy. It wasn’t until I got around rich people that I realized they talk about money all the time with their friends, with their kids, and they have plans to keep everything secure. One of my mentors has some special kind of life insurance policy that he can pull money out of whenever he wants. He bought it when he was 18. He paid $200 a month. Whenever he needs to make a big purchase like a house or inventory or a car he pulls money out of this account, makes his big purchase. puts it to work for him. It starts making money and he pays himself back into that account. No interest, no banks involved. On top of that, he has two sons. When they were born he bought them each one of these accounts. When they turn 18, it’s gonna be their graduation gifts. Now they’re starting life with access to this kind of capital. Meanwhile, in families like mine, we’re teaching work hard, save hard and maybe someday you’ll be lucky enough to be able to afford a car in cash like it’s wild.
Matt’s Reaction:
Yeah, okay. Well, it’s funny that she’s giving advice about whole life insurance, and at the top of the screen, it says not financial advice. Well, my not financial advice is stay away from whole-life policies. One they’re one of the highest commission financial products that you can find out there. People who sell insurance products and financial products love it when people buy whole-life policies because they make huge commissions. Anytime somebody’s getting a huge commission, you have to think their advice may be a little skewed as to whether or not it’s really a good idea for you. In fact, I would say if you compare all the different financial products, whole-life policies are near the bottom of the list. There’s much better ways to save and invest and grow your money. And I don’t think it’s trashy to talk about money at any level. It’s trashy to talk about what you bought with your money, or how much money you make compared to other people. But it’s not trashy to talk about what are good ways to save and invest and grow your wealth and build wealth over time and set aside a cushion so you have money for emergencies and be able to afford things later in life and be able to retire comfortably. None of that’s trashy but it is kinda trashy to make a TikTok talking about a financial product with a big banner across the top that says not financial advice where you’re giving financial advice about a financial product, that is a terrible decision in my opinion. Which I guess is financial advice, although, you know, don’t go out and not buy or buy a cash life policy based on this either, right? Talk to an actual qualified financial advisor and consider whether or not their advice is free, in which case it probably means they’re earning money from commissions or if you’re going to a fee-based adviser, who’s probably giving you the best advice cause you’re paying them regardless of what you buy from them. So there’s my financial advice, that’s not financial advice. Don’t listen to this at least consider all the options and understand what you’re getting into before taking advice directly from a TikTok.
