Financial advice is everywhere, on social media platforms like TikTok, Instagram, YouTube, and even through AI chatbots.
In particular, there is an influx of information online about Self-Managed Super Funds (SMSFs). This advice often sounds amazing and potentially life-changing however, it is important to be sceptical. When things sound too good to be true, they often are. The major concern with taking advice from online sources is that it is unregulated, generic, and potentially misleading.
Why Seeking Advice from AI and Social Media Can Be Risky for SMSFs
There is no accountability
Licensed financial advisers must follow strict laws and a “best interests duty” when giving advice about SMSFs and other financial products. AI tools and social media influencers are not bound by these rules. Following their guidance could expose you to significant financial or legal risk.
Complexity of SMSFs
SMSFs are highly regulated and involve strict compliance obligations, investment strategies, and legal requirements. Meeting these requirements often comes with a price tag. Online, generic advice fails to consider your personal circumstances such as your super balance, risk tolerance, family situation, or retirement goals. This can result in poor outcomes or people setting up SMSFs when they are not in a position to be able to meet their regulatory requirements.
Misinformation and hype
Social media thrives on attention-grabbing content. Promises of “fast wealth” or “guaranteed returns” through SMSFs are often oversimplified or completely inaccurate. These messages rarely highlight the risks or the administrative responsibilities involved.
When to ask questions
When someone is encouraging you to set up an SMSF to buy property or shares quickly. Urgent calls to action, like “do this now or miss out,” which pressure you to act before considering your situation.
When someone is claiming an SMSF is a “secret” to early retirement without mentioning compliance, diversification, or contribution limits. Be sceptical when ‘advice’ doesn’t mention tax implications, legal obligations, or investment risk.
The Risks for SMSF Investors
Following unregulated advice can lead to:
- Financial loss due to poor investment choices.
- Compliance breaches, which can incur penalties or audits from the ATO.
- Missed retirement goals, because your strategy may not suit your long-term needs.
- Legal or tax complications, especially if you act on advice that ignores regulatory rules for SMSFs.
How to Protect Yourself
Use social media and AI for education only. These tools can help you learn concepts, explore ideas, or stay informed, but never rely on them for personalised advice.
Consult a licensed financial adviser for decisions about SMSFs, investments, or superannuation. Only they can give advice tailored to your circumstances and are legally obliged to act in your best interest.
Question advice that promises fast or guaranteed wealth. If it sounds too good to be true, it probably is.
Verify sources. Check credentials, regulatory licenses, and whether advice comes from qualified professionals.
SMSFs can be a powerful tool for taking control of your superannuation investment and planning for retirement, but only when used correctly and with professional guidance. AI and social media may provide ideas or general education, but they cannot replace licensed financial advice. Before acting on any SMSF tips online, pause, research, and speak to an adviser who understands your goals, risk tolerance, and obligations.
Your financial future, and the success of your SMSF, is too important to leave to algorithms or influencers. Always seek advice you can trust.