The Clark Howard Podcast

Episode: Ask An Advisor with Wes Moss (01.06.26)

Date: January 6, 2026

Host: Clark Howard
Guest: Wes Moss (Financial Advisor)
Special Contributor: Krista Dibias

Overview of the Episode

This "Ask An Advisor" episode marks the beginning of the second year of Clark Howard's collaboration with financial advisor Wes Moss. The show centers on empowering listeners to achieve financial freedom by offering practical money-saving strategies, personal finance guidance, and real-world answers to audience questions. Major themes this week include the current state of household wealth in America, advice for the “next generation millionaires,” and detailed answers to a range of listener-submitted financial questions.

Key Discussion Points and Insights

1. The Wealth Picture in America

(00:52 - 06:27)

• Data Sources: Most recent wealth data comes from the Federal Reserve's triennial “Study of Consumer Finances,” along with regular reporting from Vanguard, Fidelity, and other financial firms.
• Key Stats:
  • Net Worth of $500,000+: ~33% (one in three) U.S. households
  • Net Worth of $1,000,000+: ~20% (one in five); many are “millionaires on paper,” often due to home equity
  • Top 10%: ~$2.7 million net worth
  • Top 1%: ~$11.6 million net worth
  • Median Household Net Worth: Just under $200,000
  • Retirement Savings: ~1 in 100 households have $1 million+ in retirement accounts (401k, IRA, etc.), translating to about 1.3 million households.
• Where Wealth is Held: Much wealth is outside retirement accounts: home equity, brokerage accounts, rental real estate, business ownership.

"So, a third of Americans have a net worth of a half a million dollars. Pretty encouraging."
— Wes Moss [03:21]

"To be in the top 10% of net worth in America, you've got to be at about $2.7 million."
— Wes Moss [03:54]

"To be in the top 1% of households? 11.6 million."
— Wes Moss [06:09]

2. Listener Q&A: Navigating Savings Amid Job Risk

(06:27 - 10:44)

Question from Joanna (Virginia):
Concerns over potential job disruptions due to AI; seeking guidance on balancing retirement savings (target date 401k, Roth, high-yield account) and emergency fund access.

Wes’s Advice:

• Access to Savings: Prioritize Roth IRA funding for flexibility; Roth contributions can be withdrawn without penalty if needed.
• Rule of 55: If the husband's job ends after 55, could access 401k earlier.
• Maintain Emergency Fund: High-yield savings remain important for unexpected events.
• Rationale: Contribute while employed, but preserve some accessible, penalty-free options in case of career disruption.

"Access means use the Roth. Max out your Roth IRAs because your contributions are free for the taking. And if the world does go the way of Hunger Games… you are going to be able to access that money."
— Wes Moss [09:35]

3. Listener Q&A: Buying a Condo for College Kids/Investment

(10:44 - 13:41)

Question from Jamie (Florida):
Should we buy a condo for our college-age kids near campus—with cash, or take a mortgage for better rental income opportunities?

Wes’s Advice:

• Make Investment First: Purchase a property that's attractive/rentable even if not ideal for kids.
• Location: Must be easily rentable and close to campus for resale potential.
• Cash vs. Mortgage: If you can buy cash, ensure the property still meets investment standards; don't buy "too cheap."
• Short-Term Ownership: 5-6 years of ownership is reasonable, especially if rentable and saleable after kids graduate.

"You want this thing to be highly rentable even if it's not your kids, because if it's highly rentable, it means it's highly sellable."
— Wes Moss [11:31]

4. Listener Q&A: Fiduciary Fees and Value

(14:09 - 17:17)

Question from Jeffrey (California):
What should I expect for a 1% fee from a fiduciary advisor?

Wes’s Advice:

• Scope of Services: 6 core areas:
  1. Retirement planning and cash flow projections
  2. Tax strategy
  3. Charitable giving advice
  4. Legacy/estate planning
  5. Asset protection/insurance coordination (including healthcare)
  6. Small business financial advice (where applicable)
• Ongoing Engagement: Not all areas are addressed at once; expect 2-3 to be in focus at any time.
• Goal: Organized, proactive financial management for security and peace of mind.

"Put all that together and that's what an advisory firm should be doing for folks."
— Wes Moss [17:05]

5. Next Gen Millionaires — Blueprint for Building Wealth

(18:18 - 24:23)

• Learning from Veterans: Younger listeners can replicate the success of older, financially stable show fans by adopting their habits—steady saving, investing, avoiding debt, and frugality.
• Millionaire Math:
  • $1,000/month in an S&P 500 index: $1M in ~20 years, based on historical returns.
  • Maxing out a 401k (~$2,000/month): ~$2M in 20 years.
• Traits of Happy Retirees: Those with a plan are twice as likely to report a happy retirement.
• Audience Encouragement: The “millionaire blueprint” is slow, steady, and simple—patient repetition, not magic or luck.

"It is not magic and it's not impossible. It's just a long, long run... There's no reason it shouldn't continue."
— Wes Moss [22:41]

"You want to be the tortoise, not the hare. For sure. Slow and steady."
— Clark Howard [24:23]

6. Listener Q&A: Buffered ETFs

(24:23 - 27:19)

Question from Stephen (Texas):
Do buffered ETFs provide true downside protection with acceptable tradeoffs?

Wes’s Advice:

• Structure: Layered option strategies within ETFs; promise downside protection and capped upside.
• Downsides:
  • Don’t always provide full protection during losses.
  • Significant upside is often limited—can lag far behind in strong equity years.
  • Higher expense ratios.
• Preference: Stick to simple asset classes—equities for growth, bonds for safety.

"I like to keep things simple. I want my equities to be equities. I want my bonds to be bonds, and I don't like these products that are somewhere in between."
— Wes Moss [26:52]

7. Listener Q&A: Buying Out Family Member’s Share of a House

(27:21 - 31:20)

Question from Bailey (Texas):
Co-owning a house with sister’s family; want to buy them out but keep low interest rate—options for refinancing?

Wes’s Advice:

• Complexity: You likely can’t keep the old 4% mortgage if ownership changes; mortgage companies don’t allow it after a quitclaim deed.
• Avoid: HELOCs (7.5%+ interest) and pulling large sums from brokerage (due to capital gains).
• Best Option: New, clean traditional mortgage—keep the finances straightforward, especially in a family situation.
• Long Game: If this will be your retirement home, eventually you might pay off the new mortgage with proceeds from selling another property.

"Particularly, you're buying from family, which is even more important to keep this clean and simple...you're just going to have to take out your own mortgage and finance the whole thing..."
— Wes Moss [28:07]

8. Listener Q&A: Long-Term Bonds and Interest Rates

(31:20 - 33:13)

Question from Thomas (Georgia):
Long-dated bonds haven’t risen as expected; why?

Wes’s Advice:

• How Bonds Work: Longer-duration bonds are most sensitive to rate changes (seesaw analogy), but only if long-term rates move.
• Current Market: The Fed’s rate cuts have affected short-term but not long-term rates—so long-term bond prices haven’t increased much.

"What's happened is... short term bonds have come down, long term bonds haven't come down. So there really hasn't been a big, there hasn't been a big interest rate change."
— Wes Moss [31:49]

Notable Quotes & Memorable Moments (with Timestamps)

• "So a third of Americans have a net worth of a half a million dollars. Pretty encouraging." — Wes Moss [03:21]
• "To be in the top 10% of net worth in America, you've got to be at about $2.7 million." — Wes Moss [03:54]
• "To be in the top 1% of households? 11.6 million." — Wes Moss [06:09]
• "Access means use the Roth. Max out your Roth IRAs because your contributions are free for the taking. And if the world does go the way of Hunger Games… you are going to be able to access that money." — Wes Moss [09:35]
• "You want this thing to be highly rentable even if it's not your kids, because if it's highly rentable, it means it's highly sellable." — Wes Moss [11:31]
• "Put all that together and that's what an advisory firm should be doing for folks." — Wes Moss [17:05]
• "It is not magic and it's not impossible. It's just a long, long run..." — Wes Moss [22:41]
• "You want to be the tortoise, not the hare. For sure. Slow and steady." — Clark Howard [24:23]
• "I like to keep things simple. I want my equities to be equities. I want my bonds to be bonds, and I don't like these products that are somewhere in between." — Wes Moss [26:52]
• "Particularly, you're buying from family, which is even more important to keep this clean and simple...you're just going to have to take out your own mortgage and finance the whole thing..." — Wes Moss [28:07]

Important Timestamps

• Overview of Wealth in the U.S.: 00:52 – 06:27
• AI Job Disruption Savings Strategy: 06:27 – 10:44
• College Condo Investment Decision: 10:44 – 13:41
• Fiduciary Fees – Value for Cost: 14:09 – 17:17
• Next Generation Millionaires: 18:18 – 24:23
• Buffered ETFs Explained: 24:23 – 27:19
• Buying Out Family House Share: 27:21 – 31:20
• Long-Term Bonds Interest Rates: 31:20 – 33:13

Final Takeaways

• Wealth accumulation in America varies widely, and benchmarking helps contextualize your own progress.
• Flexibility and access to funds matter, especially with career uncertainty.
• Sound investment decisions should focus on simplicity, sustained saving, and learning from those who've already achieved financial stability.
• Professional advisory fees should come with broad, ongoing service—not just investment management.
• Family and real estate transactions should be handled with clarity to keep relationships healthy.

Whether you're a seasoned investor, a next-generation millionaire in the making, or simply trying to avoid financial missteps, this episode is rich with actionable insights and reassurance that long-term, steady strategies are the surest path to wealth.

For personalized questions, submit via clark.com/askclark.