The One Financial 'Celebrity' Real Experts Actually Respect

Digital media has created a buffet of options today when it comes to sourcing personal finance tips. Many pieces of advice are actually tidbits of un-wisdom no one should follow, while others might be quality information cloaked in the disservice of catchall phrasing: "Everyone should do this" type of thinking. The trouble here lies in the fact that social media personalities and other financial-space so-called "celebrities" are primarily concerned with retaining and growing their status in the zeitgeist. Staying in the spotlight improves their own personal brand (and their financial circumstances), and so buzzworthy offerings are the bread and butter for this type of financial adviser. Instead, seeking advice from a fiduciary – i.e., an adviser who's legally bound to promote your interests alone — is a common snippet of wisdom from true experts in the field.

One such expert is Lawrence Sprung, CFP, author of "Financial Planning Made Personal," and the founder of Mitlin Financial. We asked him about this problematic gap between financial celebrities and the value of the advice they're offering to listeners, readers, and viewers. He noted that "several of these financial 'celebrities' inspired" him to ultimately write his book; yet, there's one celebrity to which his concerns don't apply. With his help, we get to the bottom of what separates the opinions and examples of this uniquely valuable financial celebrity from the pack.

Warren Buffett was always going to be the celebrity named in our conversation. It certainly makes sense in hindsight that the Oracle of Omaha would rate highly among financial professionals. He's made mistakes, of course (he made our list of the best and worst stock predictions in U.S. history), but Buffett has consistently prized his ability to reason and analyze over any kind of flashy approach to solid money management. Since acquiring Berkshire Hathaway in 1965, he's grown the firm into a force of nature. Lawrence Sprung notes "investors need to understand where their information is coming from," and with many of the most recognizable names in the personal finance space today finding themselves "more celebrities than financial professionals," it can be immensely difficult to parse actual, research-backed financial information from them.

"On the other hand," Sprung said, "many of Warren Buffett's concepts are solid and applicable to many people. He is someone I consider more of a financial professional than a celebrity." Buffett is a value investor and someone who consistently makes decisions not based on emotion or feelings, but rather rock-solid data and plenty of time spent pouring over information. When he offers advice, it's steeped in personal research and a consummate understanding of the marketplace and other factors. (Speaking of which, here are money tricks and tips you can steal from Warren Buffett.)

CFP Lawrence Sprung is keenly aware of the sway that social media personalities and others in the business of giving widespread financial advice hold over their audience. These individuals are often highly successful in their own right, and have parlayed that history of good fortunes into their current position of advice-giving. Unfortunately, not everyone is able to translate their personal knowledge and approach in a teachable manner. This is a sticking point that comes between these personalities and their audience, but it's not the only issue at play.

There's also the issue of shifting markets. The stock market can be swayed by war, by public health crises, political turmoil, and social events. Virtually anything can impact market pricing, if even just for a day. There's absolutely no way to be certain that a history of success on the part of a financial celebrity will continue to produce positive results given the penchant for both slow and fast changes in the real world we inhabit.

Sprung focuses on yet another problem area found among financial celebrity profiles. "Many of them, since they are talking in general to the public, are found speaking in terms of 'everyone' should do this, or 'everyone' should do that," he said. "The truth is, if everyone followed their advice, many people would end up at a financial disadvantage." Instead, he advises "financial planning is very personal and should be tailored to the individual."