CFP Amanda Neely writes that this viral tax hack could hurt your business. Here’s how to tell the difference between entertainment and real financial metrics, and why follower counts won’t save you.
Recently, a client came to me trying to convince her husband that he should claim Social Security when he turns 62. Why? A TikTok video told her so.
The video was polished and confident, and received thousands of likes. This made the early claims sound like simple financial hacks. But what is not mentioned in the video is: Because there is a significant age difference between her and her husband, special consideration must be given to spousal and survivor benefits. Their situation required real analysis, not viral soundbites.
We perform a comprehensive analysis using their real numbers and life expectancy estimates as he approaches age 62. The only way to know for sure the “perfect” age would be to know exactly when each person will die. We can’t know that, so we make educated predictions based on their specific health conditions, family history, and financial needs.
This is the danger of financial advice via social media. It doesn’t mean the information is wrong. It’s never about you.
The “finfluencer” economy: entertainment disguised as expertise
Financial influencers (aka “finfluencers”) have exploded on Instagram, TikTok (hello, FinTok), and YouTube. According to research from the Financial Industry Regulatory Authority (FINRA), social media is becoming an increasingly influential source of investment information, especially among younger investors.
But let’s think about the algorithm. The content goes viral because it’s simple, confident, and interesting. Complex financial concepts can be boiled down to “Three Things You Must Do” or “Tax Hacks Your CPA Won’t Teach You.” This algorithm was not built to facilitate analysis or deep thinking.
Another problem is that these creators are usually not fiduciaries. They have no legal obligation to act in your best interests. Many do not have the proper credentials. They are not Certified Financial Planner (CFP) professionals or CPAs and have no real expertise beyond being good at content creation.
Why are real estate agents especially vulnerable?
As a real estate professional, you are entrepreneurial and have autonomy. You are used to figuring things out. So you’re more likely to DIY your household finances based on what looks good online.
However, commission-based income creates unique economic situations that cannot be addressed with general advice. Will a California agent making a steady $500,000 pledge to run for an S corp? Their situation is fundamentally different from that of an agent in Ohio who has a variable income of $180,000. Your business structure, state tax laws, income pattern, personal goals, and family situation are unique to you.
One-size-fits-all advice doesn’t particularly suit everyone.
The most dangerous “hacking” is in circulation
“Everyone should choose S-Corp status”: Not if your income doesn’t justify the administrative costs and complexity. S-Corp elections can be great for some agents, but can be a costly mistake for others. It depends on your specific numbers and situation.
Augusta Rule: Yes, you may be able to rent your home to a business tax-free for up to 14 days. However, it requires a legitimate business purpose, proper documentation, and fair market pricing. If you misuse it, you will be audited.
Aggressive Home Office Deductions: It seems prudent to take all possible deductions until you realize that it increases your audit risk and can affect the treatment of capital gains when you sell your home.
“Start Social Security at 62…Always”: Honestly, it depends on your health, estimated lifespan, spousal benefits, survivor benefits, other sources of income, and dozens of other variables you won’t learn from a TikTok video.
When social media is actually useful
To be fair, social media isn’t all bad for financial education. This is valuable if:
Learn basic financial concepts and identify questions to ask your advisor Find tools and systems worth further research (like Profit First) Find qualified experts to share truly useful content Get inspired to take action with your finances
The key is to know the difference between inspiration and direction.
Look for creators like:
Display your actual qualifications and experience Include nuances and caveats, not just confident claims Consistently say “speak to your tax professional” or “It depends” Don’t sell products that are clearly masquerading as advice
Correct use of financial information
Think of financial guidance as a three-level system.
Level 1: Social media provides inspiration, general knowledge, and a starting point for questions. Level 2: A CPA or registered agent can provide tax strategies specific to your situation and help you comply with current tax laws. Level 3: A financial planner creates a lifetime financial plan that integrates everything (taxes, retirement, insurance, estate planning, etc.) to support your specific goals.
All three working together is much less costly than following bad advice from someone who doesn’t know you, your family, or your situation.
Red flags to ignore
Skip financial content on social media like:
“Everyone should do this,” he argues. We promise to save you a specific amount of money. Tax law sounds easy. No mention of risks or disadvantages. Use phrases like “The IRS doesn’t want you to know this.” It feels like a disguised sales pitch.
control your actual financial future
Social media has changed the way we access information, and that’s mostly for the better. But entertainment isn’t the same as advice, and what’s viral isn’t the same as what’s valuable.
Your financial future requires more than 60 seconds of video. You deserve an expert who knows your name, your numbers, and your goals. It’s not just the clicks, likes, and shares that keep people on the platform longer.
Simply put, use social media for ideas. Get real advice from real experts. Because no one cares more about your money than you, and that means making the effort to get proper guidance.
What’s the worst financial advice you’ve seen on social media? Share it in the comments.
