Should you take financial advice from social media?
You’ve probably seen them online - people on TikTok, Instagram, YouTube or Facebook talking about investing, KiwiSaver, shares or cryptocurrency.
They’re known as “finfluencers” - social media influencers who provide financial information, opinions or investment recommendations.
Some provide genuinely useful education. Others may be promoting investments because they are being paid, receive referral commissions, or simply want to grow their audience.
The problem is that popularity doesn't equal financial expertise.
When information becomes advice
There is an important difference between explaining how investing works and telling someone what they should do.
For example, explaining the benefits of diversification is educational. Telling someone to switch their KiwiSaver to a particular fund is much more specific - and may constitute regulated financial advice.
The Financial Markets Authority (FMA) has become increasingly concerned about this area. In 2026, the FMA contacted 14 New Zealand finfluencers about potentially unlawful financial promotions, with some content subsequently removed or services changed.
The FMA has also taken enforcement action against investment promoters operating outside New Zealand's financial markets rules. One recent case resulted in a former financial adviser being convicted and receiving a seven-year ban from providing financial advice services.
Don't confuse confidence with competence
One of the most effective techniques used by finfluencers is to showcase investment success - large portfolios, impressive returns, expensive cars and holidays.
But you rarely see the full picture.
You don't know:
How much risk they took to achieve those returns
Whether their results are independently verified
What investments they lost money on
How they are being paid
Whether the same strategy is appropriate for you
A compelling social media post is not the same thing as a personalised financial plan.
A better approach
Use social media to learn, but be cautious about using it to make important financial decisions.
Before acting on an investment recommendation, ask:
Who is giving the advice?
How are they being paid?
What are the risks?
Does the investment actually suit my circumstances?
At Core Advice, our role is different.
We don't recommend an investment simply because it's currently popular or generating attention online. We look at your circumstances, objectives, timeframe and tolerance for risk before making a recommendation.
Your financial future is too important to be decided by an algorithm.
If you've seen an investment or KiwiSaver recommendation online and aren't sure whether it makes sense for you, talk to us before you act. We're happy to provide a second opinion.