Bad Social Media Advice
May 27, 2026
Most financial advice on social media sounds simple, confident, and convincing… and that’s exactly why it’s dangerous. The problem isn’t that people are trying to learn; it’s that they’re trusting advice that’s designed to sell, not to work in real life. In this episode, the team breaks down some of the most common “hot takes” online and exposes where they fall apart.
Frequently Asked Questions:
Generally, no. Trusts often reach the highest ordinary income tax brackets much faster than individual taxpayers. While a trust can offer privacy and potentially assist with estate planning, it does not automatically eliminate your tax obligations.
A business structure like an LLC does not automatically make personal purchases tax-deductible. Legitimate business write-offs must be ordinary and necessary for your specific industry. Trying to deduct personal luxury items is not a legitimate tax strategy.
Paying your children through a business requires them to perform legitimate, age-appropriate work for the company. The wages paid must be reasonable for the work performed, and you must maintain strict tracking and documentation.
A Custodial Roth IRA requires the child to have legitimate earned income. While these accounts can be excellent tools for teenagers with part-time jobs, infants and toddlers typically do not qualify because they do not earn a wage.
Many influencers promoting day trading strategies generate their revenue primarily from selling educational courses rather than from actual trading profits. It is important to view these videos with a healthy dose of skepticism and remember that they are often created for entertainment purposes.
Debunking Viral Social Media Financial Advice
If you spend any time on social media platforms, you have likely seen them. A financial guru standing in front of a luxury car, promising that you can write off your entire lifestyle or achieve massive stock market returns with a simple trick.
While the internet is a great place to learn new concepts, it is also a breeding ground for misleading information. Many of the viral financial tips floating around are oversimplified, factually incorrect, or outright dangerous to your financial health. Today, we are digging into some of the worst social media financial advice and exploring the reality behind the hype.
The Truth About Trusts and Taxes
A popular trend online involves telling people to put everything they own into a trust or a series of LLCs to completely wipe out their tax bill. The reality is much different.
Trusts actually pay the highest ordinary income tax rate. While there is a small exemption, every dollar a trust earns beyond a fairly low threshold could be taxed at the highest bracket. Setting up a trust is a powerful tool for estate planning and privacy, but trying to use it as a magic wand for income tax avoidance could end up costing you significantly more in the long run.
The “Just Write It Off” Myth
Another common theme is the idea that opening a Limited Liability Company allows you to write off personal expenses. You might see creators claiming you can deduct your haircuts, luxury vehicles, or vacations simply by running them through a business account.
Business expenses must be legitimate, ordinary, and necessary for your specific line of work. Renting a sports car to film a video might be a deduction for a content creator, but buying one for personal use is not a valid write-off. Following this bad advice can lead to severe complications with the IRS.
The Nuance of Paying Your Kids
You may have seen videos suggesting that you can pay your kids through your business to avoid taxes. While it is possible to hire your children, it is not a simple loophole.
Your child must perform actual, age-appropriate work for your legitimate business. You cannot simply use your child’s photo on a website that generates no revenue and claim a tax deduction. Furthermore, managing the payroll, tracking the hours, and maintaining the proper documentation can be incredibly time-consuming.
Earned Income and Custodial Accounts
This brings up a related topic: the Custodial Roth IRA. Social media is full of claims that funding an account for your newborn will make them a millionaire by age 18.
Custodial Roth IRAs are fantastic tools, but they have strict rules. The most important rule is that the child must have earned income to contribute. A 12-month-old baby does not have a job, which means they cannot legally contribute to an IRA. These accounts make much more sense for teenagers who are bringing home a paycheck from a summer job or a part-time gig.
The Reality of Day Trading Courses
Finally, be cautious of influencers flashing massive percentage returns on their stock or crypto trades. Often, these individuals are not licensed professionals. They are entertainers selling a product.
If someone truly had a proprietary day trading formula that generated consistent astronomical returns, they would likely manage a professional fund rather than sell a $99 online course. Their primary source of income is usually the course itself. When consuming this type of media, remember that anyone can manipulate a screenshot or selectively show only their winning trades.
Keep Your Focus on Your Own Goals
Social media has a way of making us feel like we are falling behind. Influencers boast about managing five different side hustles while manipulating time to get ahead. But comparison is the thief of joy.
Rather than chasing every viral financial trend or burning out on multiple side hustles, consider focusing on what you do best. Building a solid financial foundation takes patience and discipline. Depending on your situation, exploring legitimate business strategies like a Solo 401(k) for an established side hustle may be appropriate, but you do not need to follow every online fad to be successful.
Next Steps for Your Financial Journey
Navigating tax, legal, investment, and estate planning strategies can be complex, and outcomes depend heavily on individual circumstances. What works for a viral content creator might not make sense for your family.
Before acting on a tip you saw online, consider taking a step back to review your unique goals. We encourage you to speak with a qualified financial professional to discuss strategies that align with your specific needs.
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This material is purely intended to be general and educational in nature, and should not be construed as specifically-tailored investment, financial planning, tax, legal, or other professional advice. Information and data contained herein is as-of the date of publication, and may be subject to change in the future without notice. Any investment performance referenced is purely past performance, which is no guarantee of any future performance. Nothing contained herein should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or other financial product or investment strategy. All investment, tax, and financial planning strategies involve risk that you should be prepared to bear. You are highly encouraged to consult with professionals of your choosing before taking any action based on this material.