Social media users lose money on viral investment myths

Social media is flooding your feed with money myths—and many young investors are falling for them.

According to a new report from the Financial Industry Regulatory Authority (FINRA), 61 percent of social media users aged 18 to 34 have made investment decisions based on advice from online personalities. Worryingly, those same users also reported “substantially higher fraud exposure and victimization.” Experts warn that much of the financial advice circulating on platforms like TikTok, Instagram, and X is either misleading or outright false.

Take the claim that you can expect 20 percent annual stock market returns. While a viral post may quote the Rule of 72 to suggest doubling your money every 3.6 years, historical data shows the S&P 500 has averaged closer to 10 percent over decades, with wild swings year to year. Another myth promises that taking Social Security at 62 cuts benefits by 30 percent forever, and then claims that equals $500 less per month—without clarifying that the actual dollar impact depends on your benefit size. Meanwhile, a viral post insists $1 million invested will generate $100,000 in annual income, ignoring that withdrawing 10 percent a year risks depleting principal unless returns are exceptionally high.

These oversimplified promises can lead to costly mistakes, especially for younger investors still building wealth. FINRA’s data shows that those who act on influencer tips are more likely to lose money or fall for scams. The best defense is to verify financial advice with trusted sources—like certified financial planners, low-cost index funds, or established financial publications—before making investment decisions.