Hi Reader ,

How are you gearing up for the end of 2024?

I hope it’s a merry Christmas for you and your loved ones and that you have time off to recharge, rejuvenate, and plan for another revolution around the Sun.

This is also a period when many folks are reflecting on the year gone by, and making new-year goals–health, financial, emotional, and professional.

So I come bearing a warning sign of all the financial advice/shortcuts/ courses you might encounter floating on the internet as a blanket way to make money in 2025. (Yes, Reels and TikTok, I am coming for you!) But first, let’s look at all that financial knowledge we are practically drowning in, sometimes even without realizing it.

Free, Free, and Free Advice

Usually, there are two types of people we turn to for financial advice the most. Let’s differentiate between them as Category I and II.

Category I: These are names that 90% of folks would know:

• Warren Buffett
• Codie Sanchez
• Brandon Turner @ Biggerpockets
• Jack Bogle: The Godfather of Index funds

So what’s the common thing between these popular individuals? They are ultra-wealthy and have made their money work for them.

Any idea, what’s different among them? (This is a BIG ONE.)

They have all made money in their own ways, using their niche skill and expertise. For instance, Warren Buffet invested in individual stocks, Codie Sanchez bought a small business. Brandon Turner became rich via real estate, and Jack Bogle through Index fund investing.

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Onto, the next category.
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Category II: My guess is 50% of you would know and follow some of these names:

• Humphrey Yang
• Kevin Paffrath (Meet Kevin)
• Josh Rincon
• Steve-Financial Freedom Coach

This is the new wave of people called ‘Fin-Fluencers’, who share advice on personal finance, including tips on saving, investing, and managing debt.

So while there is nothing inherently wrong with consuming their knowledge, tips, and tricks, it’s important to be critical of it and apply it cautiously. Let’s discuss that in-depth.
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The Problem with Free-Floating Advice

You have probably guessed it by now, but here’s the drill: Everyone preaches about the best way of making money. And they don’t stop there.
Social media hooks people with superlative claims, so everything they share is the “best” “secret” “hack” to “getting rich”

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My question is: who is it the best for? I see a similar bias that my clients have too.

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If their family has earned a ton via real estate, they bet on it. If they have friends who are successful in their careers and have relatively high incomes, they blindly focus on growing their income, and consider it their highway to wealth. Sometimes, these notions creep into their subconscious, and they operate in ways without taking account of it at all.

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Now, here’s why exercising caution is important when consuming advice:

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One-size-fits-all approach

Personal finance needs to be personal. Simply, mutual funds are not for everyone and neither is crypto. Buffett or an influencer suggesting this is probably not aware of your money goals, income, savings rate, and so on. Consuming blanket advice, and applying it without customizing it is more detrimental than it appears.

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Lack of Transparency & Accountability:

Finfluencers don’t lay out the entire pros and cons of every asset or income-generating tactic. They may or may not be open about what’s their financial gain in selling you a particular asset class.

As per law, most influencers don’t owe “financial transparency” to their audience because they claim their content is “entertainment” or “education”, and not “advice”. This is a double-edged sword because with lack of transparency comes the denial of accountability too. With nowhere to go, if their suggestion backfires, you cannot sue them or hold them accountable. Hell, you can’t even find them beyond their Instagram handles, and e-mails.

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Questionable Expertise & Conflict of Interest

While some fin-fluencers may possess valid qualifications to serve as financial advisors, others may be underqualified, or not even legally allowed to dish out advice.
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Richard Coffin (YouTube: The Plain Bagel) for example, is a CFA, and I think brings a lot of thought and nuance to the current events of the finance world. Thus, before you follow a celebrated entrepreneur or a fin-fluencer, do a cross-check on their credentials. This is self-precaution in a world where ‘fin-fluencers’ aren’t regulated.

Trust, but Verify

I understand you might be wondering, “Who can we really rely on, then?”

Well, I am glad you asked.

The honest truth is, it’s your money, and so nobody will care about it as much as you do. So take all advice with a grain of salt, including mine.

That being said: It’s imperative to have advice from someone who is an expert, holds a relevant background, and works with you towards personalizing your money goals.

I ideally think a financial planner checks those boxes, but more specifically a FIDUCIARY, FEE-ONLY (not fee-based) financial planner, who only gets paid by you, and does not get paid commissions for anything they sell/ recommend to you.

If you don’t have one yet, truly consider it this New Year’s.

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With that out of the way, I’d like to help you sift through the BS, and seek out better advice on the internet.
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Here are some green flags that you can look out for in relatively ‘reliable’ financial influencers:
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• Clear Disclaimers: Their blog posts and videos will usually have a disclaimer like: “This is my opinion, and the information is based on my research. This doesn’t guarantee you a higher return, please do your checks before investing.”
• No BIG Claims and Advice: They will NOT advise you to invest a certain amount of your income, promise a certain rate of return, or suggest you purchase a specific stock that will make you a millionaire. This staying clear of specificity and guarantee is a sign that they understand that wealth generation is not a linear strategy.
• Leave the Decision & Choice To You: With their content, they will make it EXPLICITLY clear, that there isn’t a right or wrong, good or bad, and ultimately you should make your own choice, given your financial circumstances. More importantly, they will educate and empower you to make that choice too.
• Transparency about Credentials: Ideally, they will openly share their credentials and background, and not hide it. This is not to say that people with a certified financial planner tag may not be ill-intentioned and vice-versa (that’s possible too), but IMO transparency is key
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As I said, it’s worth rethinking your money strategy and consulting a Certified Financial Planner (CFP). If you are interested and want to explore what that looks like, happy to chat.

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We, at CapitalWe, believe in truly prioritising the “Personal” in personal finance, and with 2025 knocking on our doors, I think this might be a good time.
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What are you waiting for? Sign Up.

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That’s all for today.

See you next month!

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P.S. - I also do Ask-Me-Anything Fridays on Linkedin, so join me there if you have questions in the future!

Fun Corners of the Internet

• ​Watch this documentary on the Biggest Art Thieves in India. In a remote village temple, a gang of thieves pulled off a daring heist of some of the nation's most precious cultural heritage. Follow two detectives who bring down the mastermind behind the theft in this piece by Bloomberg.
• If you like me, love instrumental music in the background while working, here’s a series I found by Epik The Dawk. They are pretty darn good beats to work on!

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Whenever you're ready, here are 2 ways I can help you:

• If you're looking for support with your finances, you can start a (free) conversation with me to see how I can help. Here is my calendar for a FREE 30 minute consultation

• Not ready to commit? Email me your questions and I am happy to if I can get them answered in future editions of this newsletter.