You don’t have to look far to find financial advice these days. It’s everywhere. TikTok, X, Facebook, Instagram, YouTube. Quick tips. Bold claims. Viral takes. Some of it’s helpful. A lot of it? Not so much.

In our one-on-one coaching sessions with savers and investors, we hear it all the time:

“I saw this video that said 401(k)s are a scam.”
“Should I take money out of my retirement to buy a house before prices go up?”

These posts are getting traction. But they’re also creating confusion and in some cases, leading people to make decisions that could hurt their financial future.

In this episode of Money Hacks, Alex talks about the risks of following advice from influencers who aren’t licensed or regulated to give it. He breaks down two common myths we’re seeing online and explain why they’re missing key facts.

More importantly, he shares what to keep in mind as you’re learning about money, building your financial knowledge, and making big decisions for your future.

You don’t need a perfect plan. But you do need one that’s built on solid information.

Watch the full video to hear the breakdown and get a better understanding of what’s really at stake.

 

Have questions or a topic you’d like us to cover next? Money Hacks is built around real conversations with people just like you. Let us know what’s on your mind.

Video Transcript:

In today’s episode, I’m here to dispel some bad — really bad — money advice we’re seeing all over social media. Places like X, Facebook, but especially TikTok.

We’ve had a lot of investors and savers bring this stuff up in one-on-one sessions. They’ve seen something, or read something, and want to know if it’s true. And honestly, there’s a lot of it out there.

Just a few minutes ago, I saw a post where someone said a 401(k) is bad because you don’t know how much of that money is really yours. That the federal government is going to take it all in taxes when you retire.

That completely misses the point of what a 401(k) is. For all those years you're contributing, you’re getting tax-deferred growth. Your money is compounding over time.

The person in the video goes on to say you’ll be taxed at 39% — which isn’t even right. The current top marginal rate is 37.6%, but even then, almost nobody pays that rate on all their income. You withdraw money from your 401(k) gradually in retirement, so you're taxed based on how much you take out each year — not the full balance all at once.

Another clip showed a mortgage banker and real estate agent talking about pulling money from a 401(k) to buy a house. Their logic? If you wait to save, that house might not be available later. But draining your retirement for a down payment can really hurt your long-term plan.

A lot of this content is coming from people who aren’t registered financial professionals. In our industry, registered investment advisors — like us — have serious restrictions about how we give advice in public formats like this. And that’s to protect you.

We wouldn’t want to give specific advice to thousands or even millions of people, because what’s right for one person might not be right for someone else.

So as you keep learning and building your financial knowledge — which I fully support — remember that not everything you see or hear is accurate or even applicable to your situation.

Do your homework. Make decisions that are smart for today, tomorrow, and your long-term financial goals.

And if you have questions or want help figuring things out, feel free to reach out. See you next time.