Fame is a fickle master, and its limelight can fade on even the most well-known celebrities. To keep the gravy train rolling, many of them turn to a second career: the celebrity pitchman.
You’ve seen them everywhere. Tom Selleck from Magnum P.I. pushing reverse mortgages. Jennifer Garner selling credit cards. Legendary Jets quarterback Joe Namath endorsing Medicare Advantage plans. This phenomenon isn’t limited to aging actors, either — rapper Eminem has been hyping crypto.
But here’s the cold, hard truth: Buying financial products from a celebrity on TV is a stupid investment trick. And it’s one of the most dangerous tricks in the book.
Here’s why.
1. You’re Entering a Sales Funnel, Not Getting Free Advice.
That “free information” you’re promised because you like Tom Selleck? It comes at a cost. When you respond to that ad, you’re surrendering your personal information and being placed at the top of a sales funnel. You may never escape it, and you will be hounded for the rest of your life. Worse, the information you give could be sold to other companies, leading to even more unwanted calls and emails about other financial products.
2. The “Trust” Is an Illusion.
Companies selling financial products through celebrities are trading on the inherent trust you have for them—a trust they may not deserve. As a lifelong New York Jets fan, you might have an enlarged affection for Joe Namath because of his Super Bowl III victory. But if you knew he was arrested for drunk driving in 1982, would you still trust him enough to enroll in a Medicare Advantage plan? The commercials show him holding a football, but they never show his rap sheet.
3. The Product Has Nothing to Do with Your Plan.
This is the most critical reason of all. The product a celebrity is selling is completely disconnected from your personal financial plan. Bill O’Reilly’s pitch for and may sound great, but the company behind it will sell you as much as they can, not the amount that is prudent for your Investment Policy. And while a sliver of crypto might fit into your portfolio, you may already own a sliver, or a lot more than a sliver!.
Former Fox newsman Bill O’Reilly pitching gold and silver investments that can be delivered right to your door.
In his 2024 ad for crypto, Eminem declared, “Fortune favors the brave.”That may be so. But for the vast majority of investors — the ones trying to buy a house, send a kid to college, or save for retirement — bravery often means staying the course and not falling prey to pitches from the rich and famous on TV.