The Clark Howard Podcast: Ask An Advisor With Wes Moss

Episode Date: January 27, 2026
Guests: Wes Moss (Advisor), Krista Dubiaz (Host)
Theme: Understanding Personal Finance in Today’s America – Middle Class Trends, Emergency Funds, Advisors, Gold, & Dividend Investing

Episode Overview

This episode of The Clark Howard Podcast features Wes Moss answering listener questions about smart financial strategies, with a focus on evolving definitions of the middle class in America, the durability and role of dividends, and real-world advice on advisors, emergency funds, gold, investment clubs, retirement planning, and wise investing strategies. Krista Dubiaz joins Wes in this practical, engaging session of “Ask An Advisor,” loaded with advice, context, and memorable one-liners.

Key Discussion Points & Insights

1. Is the Middle Class Shrinking? (00:46–08:06)

• Wes Moss reframes the much-publicized “shrinking middle class” narrative:
  • The “shrinking” is due to upward mobility — more people are moving from core middle class to upper-middle class.
  • Income Brackets (AEI study for household of 3):
    • Poor/Near Poor: $0–$40k
    • Lower Middle: $40k–$67k
    • Core Middle Class: $67k–$133k
    • Upper Middle: $133k–$400k
    • Rich: $400k+
• Role of AI & Job Market:
  • Quoting Jensen Huang (Nvidia CEO), Wes notes AI’s potential to increase labor demand, especially in skilled trades and healthcare.
  • The concern shifts from “job shortage” to “labor shortage.”
• Statistical Shift (1979 to today):
  • In 1979: 10% upper middle class, 54% core middle, rest below.
  • By 2024: 31% upper middle, 31% core middle.
  • Quote (07:12):
    “We’ve seen maybe the middle class has graduated in large part to the upper middle class in America. Again, big shift nobody talks about.” — Wes Moss

2. Listener Q&A: Emergency Fund Balancing (08:07–10:17)

Question from Allie in California

• How much cash is enough for an emergency fund? Is 3 months enough or should you have 6?
• Wes’s nuanced answer:
  • Default is 6 months, but with a pension and other insurances in place, 3 months is sensible.
  • Quote (09:36):
    “You have all these other income sources coming in that are essentially guaranteed and they’re there for safety, which reduces how much safety cash you have to have. So tie goes to three versus six.” — Wes Moss

3. Listener Q&A: Should You Get a Financial Advisor? (10:21–16:50)

Question from Daniel in Georgia

• Daniel feels increasingly overwhelmed with family finances and wonders about hiring an advisor.
• Wes’s advice:
  • Complex lives (multiple kids, big goals, reducing income) make professional advice more valuable.
  • Fee-only, fiduciary advisors are preferred—look for planners paid a flat fee or hourly, not commission.
  • Recommends feeonlynetwork.com for finding advisors; emphasizes you don’t have to give up asset control.
  • Quote (11:24):
    “Doesn’t it make sense to have a quarterback or a coach or an architect or someone to give you a blueprint, or keep you accountable, keep you rational and be thinking clearly?” — Wes Moss
• Fiduciary Focus (16:09):
  • Avoid conflicts of interest: “Fiduciary, fee-only. Means there’s no commissions, there’s no products that someone gets compensated to sell you on.” — Krista Dubiaz

4. Listener Q&A: Gold and Its Role (16:50–18:50)

Question from Ron in North Carolina

• Ron asks if gold truly acts as a diversifier during stock market corrections.
• Wes:
  • Gold has a zero long-term correlation with stocks—it doesn’t consistently move opposite or together.
  • It can still act as a good diversifier: “Sometimes gold goes up and stocks go up. Sometimes stocks go down and gold goes up...over a really long period of time, it’s essentially a zero correlation and a very unstable correlation.” — Wes Moss (17:15)

5. In-Depth: The Power and Durability of Dividends (20:31–28:35)

• Wes’s “Favorite Child” in investing: Dividends.
  • Despite today’s low overall S&P 500 dividend yield (~1.2%), dividends have historically made up over 1/3 of total returns.
  • Long-term strengths:
    • From 1960 to last year, dividends made up 37% of stock market total returns.
    • Dividends offer steady income, outpace inflation, and are rarely reduced—signaling company strength.
    • “Dividends paid out by the S&P 500 have grown at 150% of CPI...just dividends themselves have outpaced the cost of living gains that we’ve all had to endure.” — Wes Moss (24:19)
  • Case Studies:
    • Discusses companies with decades-long streaks of dividend increases, e.g., Johnson & Johnson, Coca-Cola, Procter & Gamble, Federal Realty, McDonald’s.
    • “Dividends rose 2.6 times faster than CPI, which is over...that’s from 1990.” — Wes Moss (26:20)
  • Real-life utility:
    • In retirement, dividend income becomes especially valuable for passive, inflation-beating cash flow.

6. Listener Q&A: Taxing Issues with Investment Clubs (28:35–32:31)

Question from Michael in Minnesota

• Parents in an investment club wish to gradually transfer assets out to minimize capital gains.
• Key insight:
  • Brokerages may block “in kind” transfers between partnerships and individual accounts for fraud/rules reasons, not ease.
  • Suggests trying other brokerages like Fidelity, or as last resort, distributing small amounts each year to manage tax burden.

7. Listener Q&A: Retirement Savings Targets – How Accurate Are They? (32:31–36:12)

Question from Dana in Georgia

• Wonders if “one-size-fits-all” retirement savings targets make sense.
• Wes’s breakdown:
  • National retirement numbers are directionally correct but miss individual nuances (spending needs, household status, Social Security, assets).
  • Typically, these studies report for two-person households.
  • Single retirees have it harder due to fixed costs and fewer income streams.
  • “Imagine going to the ballpark and not having a ticket. You’re still a long way from your seat.” — Wes Moss (35:33)
  • Personalized planning (using detailed calculators) gives a more accurate savings number.

8. Listener Q&A: Dollar Cost Averaging vs. Timing the Market (36:12–38:56)

Question from Gary in North Carolina

• Compares Warren Buffett’s large, opportunistic buys to typical investor strategies.
• Wes’s advice:
  • Buffett’s approach is as a professional money manager—most people should stick to steady, diversified buying (dollar cost averaging), not market timing.
  • “You are going into retirement, you’re better to be well allocated and...holding, buying and holding through your dollar cost averaging.” — Wes Moss (37:42)

Notable Quotes & Memorable Moments

• Wes Moss on Dividends:
  “If I had to pick a favorite child, it would be dividends...over the course of history...almost 40% of the total return has been because of dividends.” (22:31)
• On Financial Advisors:
  “Doesn’t it make sense to have a quarterback or a coach or an architect or someone to give you a blueprint, or keep you accountable, keep you rational and be thinking clearly?” (11:24)
• On Middle Class Movement:
  “Maybe the middle class has graduated in large part to the upper middle class in America. Again, big shift nobody talks about.” (07:12)
• Krista on Investment Simplicity:
  “Why join a group where you give up control of your assets when you can simply DIY? That’s my lesson learned from this experience.” (29:36)
• On Retirement Benchmarks:
  “They get you to the ballpark, but to get to your exact seat, it takes a little bit of planning to know exactly what you need to spend.” (35:33)

Important Segment Timestamps

| Segment | Timestamp | |---------------------------|---------------| | Middle class trends & AI | 00:46–08:06 | | Emergency funds | 08:07–10:17 | | Financial advisors | 10:21–16:50 | | Gold’s diversification | 16:50–18:50 | | Dividends: durability | 20:31–28:35 | | Investment clubs & taxes | 28:35–32:31 | | Retirement target myths | 32:31–36:12 | | Dollar cost averaging | 36:12–38:56 |

Final Thoughts

This episode brings clarity, wisdom, and practicality to personal finance—debunking popular myths about the middle class and retirement savings, demystifying investment strategies, and providing actionable guidance for listeners at all financial stages. Wes Moss’s delivery is approachable, optimistic, and packed with real data, making this Ask An Advisor session a must-listen for anyone seeking financial confidence.