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That viral tax hack might tank your business, CFP Amanda Neely writes. Here’s how to tell the difference between entertainment and actual financial guidance and why your follower count won’t save you.

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A client recently came to me convinced her husband should claim Social Security at age 62. Why? A TikTok video told her so.

The video was slick and confident, with thousands of likes. It made early claiming sound like a no-brainer financial hack. But here’s what the video didn’t mention: She and her husband have a significant age gap, which creates special considerations for spousal and survivor benefits. Their situation required actual analysis, not a viral soundbite.

We’ll run a comprehensive analysis as he approaches 62, using their real numbers and life expectancy estimates. The only way to know the “perfect” claiming age with certainty would be to know exactly when each of them will die. Since we can’t know that, we make educated projections based on their specific health, family history and financial needs.

This is the danger of financial advice from social media. It’s not that the information is wrong. It’s that it’s never about you.

The ‘finfluencer’ economy: Entertainment dressed up as expertise

Financial influencers (aka “finfluencers”) have exploded across Instagram, TikTok (hello, FinTok) and YouTube. According to research from the Financial Industry Regulatory Authority (FINRA), social media has become an increasingly influential source of investment information, particularly among younger investors.

Yet, consider the algorithm. The content goes viral because it’s simple, confident and entertaining. Complex financial concepts get boiled down to “three things you MUST do” or “the tax hack your CPA won’t tell you about.” The algorithm isn’t built to promote analysis and deep thinking.

Another problem is that these creators typically aren’t fiduciaries. They have no legal obligation to act in your best interest. Many lack proper credentials. They aren’t Certified Financial Planner (CFP) professionals, CPAs or licensed, and they have no actual expertise beyond being good at creating content.

Why real estate agents are particularly vulnerable

As real estate professionals, you’re entrepreneurial and self-directed. You’re used to figuring things out. That makes you more likely to DIY your finances based on what sounds good online.

But your commission-based income creates unique financial situations that generic advice doesn’t address. That California agent earning a steady $500,000 who swears by S-Corp election? Their situation is radically different from that of an Ohio agent with a variable $180,000 income. Your business structure, state tax laws, income patterns, personal goals and family situation are yours alone.

One-size-fits-all advice doesn’t fit anyone particularly well.

The most dangerous ‘hacks’ making the rounds

‘Everyone should elect S-Corp status’: Not if your income doesn’t justify the administrative costs and complexity. S-Corp election can be brilliant for some agents and a costly mistake for others. It depends on your specific numbers and circumstances.

The Augusta Rule: Yes, you can potentially rent your home to your business for up to 14 days tax-free. But it requires a legitimate business purpose, proper documentation and fair market rate pricing. Misuse it, and you’re inviting an audit.

Aggressive home office deductions: Taking every possible deduction sounds smart until you realize it can increase audit risk and affect capital gains treatment when you sell your home.

‘Start Social Security at 62 … always’: It honestly depends on your health, longevity estimates, spousal benefits, survivor benefits, other income sources and dozens of other variables that a TikTok video can’t possibly know.

When social media actually helps

Let’s be fair: Social media isn’t all bad for financial education. It can be valuable for:

Learning basic financial concepts and identifying questions to ask your advisors
Discovering tools and systems (like Profit First) worth researching further
Finding credentialed professionals who share genuinely helpful content
Getting inspired to take action on your finances

The key is knowing the difference between inspiration and instruction.

Look for creators who:

Display actual credentials and experience
Include nuance and caveats, not just confident claims
Consistently say “consult your tax pro” or “this depends on your situation”
Aren’t obviously selling you products disguised as advice

The right way to use financial information

Think of financial guidance as a three-level system:

Level 1: Social media provides inspiration and general education, the starting point for questions.
Level 2: Your CPA or enrolled agent delivers a tax strategy specific to your situation and keeps you compliant with current tax law.
Level 3: Your financial planner creates a lifetime financial plan that integrates everything (taxes, retirement, insurance, estate planning and more) to support your specific goals.

All three working together cost far less than following bad advice from someone who doesn’t know you, your family or your situation.

Red flags to ignore

Skip social media financial content that:

Claims “everyone should do this.”
Promises specific dollar amounts you’ll save.
Makes tax law sound simple.
Doesn’t mention risks or downsides.
Uses phrases like “the IRS doesn’t want you to know this.”
Feels like a sales pitch in disguise.

Take control of your real financial future

Social media has changed how we access information, and that’s mostly positive. But entertainment isn’t the same as advice, and viral isn’t the same as valuable.

Your financial future deserves more than a 60-second video. It deserves professionals who know your name, your numbers and your goals, not just what makes you stay on their platform longer, clicking, liking and sharing.

Long story short, use social media for ideas. Get actual advice from actual professionals. Because no one should care about your money more than you do, and that means doing the work of getting proper guidance.

What’s the worst financial advice you’ve seen on social media? Share in the comments.

Amanda Neely is a Certified Financial Planner with Wealth Wisdom Financial. Connect with her on LinkedIn.

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