Stienemarié Bonsma-Potgieter, CFP®

Financial advice is everywhere. Scroll through social media and you’ll find people sharing investment tips, explaining how to become financially independent or promising to show you the secrets of building wealth. Friends and family have opinions too, often based on their own experiences or something they’ve recently heard.

Having access to so much financial information can be empowering, particularly for people who want to learn more about managing their money. However, with so many voices competing for attention, knowing whose advice to trust has become increasingly difficult.

The question is worth asking because financial decisions can have consequences that last for years and the impact, positive or negative, can shape your financial journey.

When seeing is no longer believing

In June 2026, South Africa’s Financial Sector Conduct Authority (FSCA) issued a warning about an investment scam involving artificial intelligence-generated videos impersonating a well-known financial journalist and broadcaster.

This incident is one of many that highlights an increasingly concerning reality. Technology has made it possible for fraudsters to create remarkably convincing content featuring people we recognise and may already trust.

A familiar face, professional presentation or confident explanation can create an impression of credibility, even when the information itself is misleading or entirely fabricated.

It also raises a broader question about the financial information we encounter every day. How do we distinguish useful guidance from advice that could lead us in the wrong direction?

Popularity doesn’t necessarily mean expertise

Social media has made financial information more accessible, and there are knowledgeable people using these platforms to educate and inform. Understanding how investments work, learning to budget or becoming familiar with financial terminology can all help people make better decisions.

The challenge arises when general information is presented as advice that everyone should follow.

Someone sharing how they made money from a particular investment may genuinely have enjoyed success, but their circumstances could be entirely different from yours. They may have more money available, a greater willingness to accept losses or a much longer period in which to invest.

Consider two people who hear the same recommendation to invest in a high-risk opportunity. One has substantial savings, no debt and years before retirement. The other is approaching retirement and depends on their investments to provide an income. The consequences of following that recommendation could be very different for each person.

The number of followers someone has, the lifestyle they display or the confidence with which they speak tells you very little about whether their advice is suitable for your financial circumstances.

Be cautious of promises that sound too good to be true

One of the most common warning signs of questionable financial advice is the promise of unusually high returns with little or no risk.

Investing always involves some degree of uncertainty. While certain investments carry less risk than others, no legitimate investment can promise extraordinary returns without exposing investors to meaningful risks.

Pressure is another warning sign. Being told that an opportunity is available for a limited time, that you must invest immediately or that everyone else is already making money should encourage you to slow down and investigate further.

It is also worth questioning anyone who avoids explaining how an investment works, what it costs or how your money will be protected.

A credible adviser should be comfortable answering questions, discussing potential disadvantages and giving you sufficient information to make an informed decision.

Good financial advice starts with understanding you

The value of professional financial advice lies in its relevance to your individual circumstances.

Before making recommendations, a financial adviser should take time to understand your income, expenses, existing investments, family responsibilities and future goals. Your attitude towards investment risk and the time you have available to achieve your objectives are equally important.

For example, someone saving for a deposit on a home in two years will generally require a different investment approach from someone building retirement savings over the next 25 years.

Professional advice should also consider how different financial decisions affect one another. Investing more aggressively, paying off debt, increasing retirement contributions and maintaining sufficient emergency savings all form part of a bigger financial picture.

In South Africa, you can verify whether a financial services provider is authorised through the FSCA. It is also important to establish whether the person offering advice is appropriately authorised to advise on the particular financial products being discussed.

Even when dealing with a registered provider, take the time to understand the recommendation, the risks involved and any fees you will pay.

Think before you follow

There is nothing wrong with learning about money from books, podcasts, online articles or social media. These resources can encourage curiosity and help you become more confident in financial conversations.

The important thing is to remain selective about the advice you act on.

Before making a financial decision, consider where the information comes from, whether the person offering it has the necessary expertise and whether they may benefit financially from your decision. Most importantly, ask whether the recommendation makes sense for your own circumstances and long-term goals.

Financial decisions deserve careful consideration, particularly when your savings, retirement or family’s financial security are involved.

In a world where almost anyone can offer financial opinions, taking the time to verify information and seek appropriate and qualified guidance remains one of the most valuable ways to protect your financial future.

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