Latest news with #investmentadvice
Forbes
6 days ago
- Business
- Forbes
Cheap Advice Is Expensive: The Hidden Cost Of The Wrong Financial Partner
Too often, people choose their financial advisor the same way they'd pick a landscaper: whoever's local, friendly, and costs less. That decision might be the most expensive 'savings' of their life. Most people think financial planning is about budgeting apps, retirement calculators, or tuning in to CNBC while they multitask. It's not. Real financial planning is about making irreversible decisions with irreversible consequences—and knowing who you've trusted to guide those decisions. And yet, too often, people choose their financial advisor the same way they'd pick a landscaper: whoever's local, friendly, and costs less. That decision might be the most expensive 'savings' of their life. Early in my career, I started to notice a pattern. People—smart, successful people—would sit across from me and ask, 'What do you charge?' before they asked anything about the value, the process, or the outcomes. That instinct is deeply human. But in financial planning, cheap advice isn't just unhelpful—it's actively dangerous. A bad call on a tax strategy, estate plan, or investment allocation doesn't just cost you money. It compounds quietly over time, eroding wealth and creating future liabilities. I've seen clients pay six figures in unnecessary taxes because they followed product-driven advice from someone earning commissions on the backend. They didn't know better—because no one told them how the system works. Here's the uncomfortable truth: most of the financial services industry isn't built to serve you. It's built to sell to you. There are three models you need to understand: People often assume wealthy individuals manage everything themselves. That's false. The wealthy aren't just better earners—they're better delegators. They build teams. Accountants. Estate lawyers. And critically, independent advisors who act as true partners. This mindset shift—seeing financial planning as a partnership, not a transaction—is what separates people who preserve wealth from those who lose it to bad guidance. I tell prospective clients this often: If you think it's expensive to hire a professional, wait until you hire an amateur. The wrong advisor won't just charge less. They'll cost more—over years, in ways you won't even see until it's too late. According to a 2015 White House report about the impact of questionable investment advice on retirement savings, 'A retiree who receives conflicted advice when rolling over a 401(k) balance to an IRA at retirement will lose an estimated 12 percent of the value of his or her savings if drawn down over 30 years.' In today's market, transparency is rare. Alignment is rarer. But it's what you should demand when your financial future is on the line. Don't ask, 'What do you charge?' Ask, 'How do you make money?' Then ask, 'Who are you loyal to?' If the answer isn't 'you'—walk away. Financial planning isn't a luxury good. It's a core discipline for anyone who wants to own their future. And that means cheap isn't just the wrong mindset—it's the wrong investment.
Arabian Business
30-05-2025
- Business
- Arabian Business
UAE finfluencer licensing brings ‘long overdue accountability' to social media investment advice, experts say
The United Arab Emirates has launched the region's first licensing system for finance influencers, marking a regulatory milestone that wealth managers say brings 'long overdue accountability' to social media financial content that has often put investors at risk. The UAE's Securities and Commodities Authority (SCA) announced the groundbreaking 'finfluencer' licence on Wednesday, establishing a comprehensive framework for individuals offering investment analysis and recommendations across digital platforms. The move comes as regulators worldwide grapple with the growing influence of unqualified social media personalities on public investment decisions. 'Introducing the Finfluencer license is not merely a regulatory measure; it is a strategic move to redefine the role of regulators in the digital economy,' said H.E. Waleed Saeed Al Awadhi, CEO of the SCA. 'Through this initiative, the SCA aspires to elevate global benchmarks of market integrity, foster transparency, and nurture a disciplined and trustworthy financial environment.' هو الشخص المسجل لدى الهيئة لتقديم توصيات مالية تتعلق بشراء أو بيع أو الاحتفاظ بمنتج مالي أو أصل افتراضي أو تقديم توصية تتعلق بخدمة مالية أو أي مصدر داخل الدولة، من خلال وسائل الإعلام التقليدية أو الحديثة كوسائل التواصل الاجتماعي المختلفة المكتوبة أو المسموعة أو غيرها أو المشاركة… — SCA UAE (@sca_uae) May 30, 2025 The regulation applies to anyone with at least 1,000 followers who provides financial recommendations related to regulated products or entities within the UAE, covering everything from social media posts to public seminars and traditional media appearances. Industry welcomes regulatory clarity Daniel George, Head of Business at St James's Place Middle East, described the licence as 'a timely and necessary move' that addresses longstanding concerns about unqualified advice circulating on social media platforms. 'It brings long overdue accountability to social media financial content, where unqualified advice has too often gone unchecked – putting investors at real risk of scams, misinformation and get-rich-fast schemes that backfire,' George told Arabian Business. The wealth management executive said the regulation validates what traditional financial firms stand for: 'trust, transparency and regulated advice.' He added that it 'resets the playing field and reinforces the value of credible, long-term and professional financial advisory in a market flooded with unverified content.' Legal experts also noted that the UAE's approach stands out for its unusually broad scope compared to existing frameworks globally. Hala Harb, a Senior Associate at Dubai-based law firm BSA, said the regulation 'applies across all media formats, not just social media, but also includes offline appearances such as public events and seminars.' Unlike other jurisdictions that typically target licensed firms, the SCA's rules extend to any individual with a notable online presence providing financial advice, regardless of their location if they target UAE audiences. 'The Finfluencer Law sets an important precedent by officially regulating individual content creators, extending rules to influential figures beyond traditional licensed financial institutions,' Harb explained. In a departure from traditional regulatory approaches, the SCA has waived all registration, renewal, and legal consultation fees for three years. This strategy aims to encourage compliance rather than create barriers to entry. However, applicants must still meet specific conditions, including being a certified financial analyst, having at least six months of finance experience, or providing consistent, credible recommendations based on analysis or third-party recognition. Harb noted that the relatively low threshold of 1,000 followers 'reflects a proactive regulatory stance' and means 'even smaller content creators need to be aware that their financial commentary could now fall under formal oversight.' Market impact and client behaviour The regulation comes as wealth managers report increasing client interest in social media-driven investment ideas. George said his firm has had 'clients walk into a meeting quoting something they've seen on Instagram or TikTok and asking if they should jump on the trend.' He welcomed this curiosity but emphasised the importance of bridging 'the gap between general content and personalised, regulated advice.' The licensing system will help introduce accountability into the discovery phase, he said. St James's Place Middle East said it is watching the space closely but will not rush into collaborations with finfluencers. 'If we do engage with finfluencers in the future, it will have to be with those who share our values: long-term thinking, client-outcome-first, and quality over hype,' George said. The initiative forms part of the UAE's broader strategy to cement its position as a leading regional and global financial hub. The SCA said the regulation demonstrates its commitment to 'safeguarding market integrity, advancing financial literacy, and aligning with international best practices.' George believes the regulatory leadership is crucial for attracting high-net-worth individuals and international business. 'HNWIs and international families want to see that a jurisdiction takes investor protection seriously. This move by the SCA sends a clear message: the UAE is not just open for business, it's serious about doing business the right way,' he explained. Enforcement challenges ahead? While industry experts welcome the framework, questions remain about enforcement, particularly for cross-border content creators. Harb said enforcing the rules across borders 'could be challenging due to jurisdictional limits, gaps in platform oversight, and the difficulties in identifying unregistered individuals.' However, she noted that individuals targeting UAE audiences 'could be subject to action, including takedown requests or platform coordination to restrict non-compliant content,' regardless of where they are based. The exact penalty amounts remain unknown due to the untested nature of the regulation. The next challenge, according to George, is 'enforcement and education – making sure both influencers and audiences understand what the licence means.'
ABC News
26-05-2025
- Business
- ABC News
Live market updates: European tariff reaction, market awaits inflation read to inform next RBA interest rate cut
European markets have reacted to a sharp shift in US tariffs. Locally our market is awaiting new data on inflation that will inform when the next RBA interest rate cut is likely to occur. Follow the day's financial news and insights from our specialist business reporters on our live blog. Disclaimer: this blog is not intended as investment advice.
Globe and Mail
09-05-2025
- Business
- Globe and Mail
Buying this 2025 YTD Winner
Discover Blue Line Capital Ready to explore how Blue Line Capital can help you achieve your financial goals? Let's chat! Click the button to get started. Let's Chat Blue Line Capital, LLC and individuals in this video may hold a position in the securities discussed. Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Blue Line Capital, LLC), or any non-investment related content, made reference to directly or indirectly in this video will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this video serves as the receipt of, or as a substitute for, personalized investment advice from Blue Line Capital, LLC.
