The Clark Howard Podcast

Episode: Ask An Advisor With Wes Moss

Date: February 3, 2026
Host: Clark Howard
Guest Advisor: Wes Moss

Overview

This special “Ask An Advisor” episode features Clark Howard and financial advisor Wes Moss tackling pressing listener questions on personal finance, investments, and retirement. The episode covers timely economic concerns—such as the U.S. dollar’s fluctuations, gold’s surge, retirement withdrawal strategies, navigating market downturns, diversifying away from the AI/tech bubble, and the pervasive fear of running out of money in retirement. The tone is practical, encouraging, and rooted in real-world application.

Key Discussion Points & Insights

1. Gold Surging, Dollar “Plunging”: Separating Hype from Reality

[01:11–07:34]

• Media Headlines: Wes describes the recent flood of headlines around a “plunging” dollar and “surging” gold and silver as “kind of plunging, sorta” — noting the over-dramatization.
• Context Matters: Despite headlines, the dollar is only down about 1%—a notable move for currency, but not a disaster. Over the past 20+ years, the dollar’s range hasn’t drastically shifted.
• Domestic Impact: “If [the dollar] changes by 1 or 2 or even 5%, up or down, it really has very little impact on our lives...our lives are in US Dollars, our retirement accounts are in US Dollars, our house, everything is priced in US dollars.” – Wes Moss [03:27]
• Economic Checklist (CHIME): Wes reassuringly grades key economic indicators, finding most are healthy:
  • Consumer spending: Up 5% year-over-year.
  • Housing: Prices stabilizing (“flatlined”), not crashing.
  • Inflation: Slightly high but manageable.
  • Interest rates: Moderately placed; no urgent Fed action.
  • Manufacturing: Slight contraction, no crisis.
  • Employment & Earnings: Still strong, layoffs offset by new job creation.
  • “Despite the dollar weakening a little bit...we have a strong economy.” – Wes Moss [07:11]
• Investor Advice: No need for drastic action or portfolio changes due to current dollar moves.

2. The 4% Rule & Retirement Withdrawal Strategies

[07:34–11:06]

• Listener Question (Ken, NC): Wonders if 4% withdrawal means never spending principal.
• Expert Consensus: Opinions vary widely:
  • Suze Orman recommends 3%, Wade Pfau as low as 2.8%, Dave Ramsey suggests up to 8%. Wes feels 4% “kind of makes sense...not etched in stone.” [09:06]
• Dynamic Guidelines: 4% (or slightly more) remains a reliable target—but, “if you have a couple great years, by all means spend some of the extra earnings that you’re getting.”
• Key Quote: “None of this is etched in stone and 4% is meant to make sure your money lasts. I like to think of it as max out what you’re pulling out without running out, and that is the range.” – Wes Moss [09:23]

3. Using “Dry Powder” in Retirement: When to Tap Your Safety Buffer

[11:06–13:30]

• Listener Question (Carlisle, CA): How should a FIRE retiree decide when to switch from equities to cash/bonds during a downturn?
• Framework for Action:
  • Under 10% market decline: Stay the course.
  • 10%+ (“correction”): “Lean a little more toward dry powder.”
  • 20% (bear market): That’s when to actively draw from cash/bonds to avoid selling stocks at deep lows.
• Simplicity Matters: “Financial planning needs to be made simple because otherwise it spins out of control and you can’t follow it.” – Wes Moss [12:00]

4. Diversifying Away from an AI/Tech Bubble

[13:30–16:38]

• Listener Question (Jay, CT): Noticed significant tech/AI overlap in their 403B and worries about bubble risk.
• Portfolio Insight: Vanguard’s broad funds tend to be market-cap (thus, tech-) weighted. To reduce exposure:
  • Add value-oriented, mid/small-cap, and international funds to pull the portfolio away from being overly tech-centric.
  • Example: “If you were to add a value-oriented fund...that’ll help. You’d also want to add in order to diversify...some of the mid and small cap funds as an example and international.” – Wes Moss [15:20]

5. Alleviating the Biggest Retirement Fear: Running Out of Money

[19:43–26:36]

• Top Concern: Wes shares research showing “50% of all Americans—running out of money is a primary fear.” Even those with $3M+ worry.
• Quotes & Perspective:
  • “It’s not going to—I’m not going to have enough to live on. And at one day my money’s going to trickle down and I’m not going to have enough. That fear drives nearly everything we do when it comes to retirement.” – Wes Moss [19:54]
• 5 Strategies to Ease the Fear:
  1. Have a Plan: Know your income streams (Social Security, pensions), calculate a sustainable withdrawal rate.
  2. Use the 4% Rule as a Guideline: Historically, 99% of the time, following it doesn’t lead to running out.
  3. Recognize Changing Spending Patterns: “People spend less as time goes on...there is a natural decline in spending, even though almost 99% of retirement models project you always spending more until eternity.” – Wes Moss [23:10]
  4. Maintain a Safety Bucket: Cash or highly liquid, safe assets (“dry powder”) help manage market downturns confidently.
  5. Remember Home Equity as a Backstop: Median home equity at retirement age is $250,000; this can be accessed in emergencies, even if it’s not part of the core plan.
• Reassurance: “If you were to consistently remind yourself that as long as I do these five things...I don’t have to worry about running out of money.” [26:14]

6. Calculating the Value of a Federal Pension with COLA

[26:41–30:23]

• Listener Question (Kevin, UT): How should you value a pension with annual COLA?
• Rule of Thumb: “For every thousand bucks a month you would get in a pension...times 12...divided by 5%. So $12,000 divided by 5%...is $240k. Round it, about a quarter of a million dollars.” – Wes Moss [28:12]
• So: A future $4,000/mo pension with COLA is worth roughly $1 million in account terms.

7. Are Junk Bond ETFs Worth It for Income?

[30:23–33:36]

• Listener Question (John, WA): Are high-yield junk bond ETFs a good addition to a portfolio?
• Wes’s Take: Yes—as part of a diversified income strategy. Junk bond funds offer higher yields (6–7% currently).
• Risks: “When the stock market gets really nervous and goes down, so do junk bonds. Not as much as stocks…but during the pandemic…junk bonds were down 25%.” [33:05]
• Diversify and Use for Accentuating Income: Default risk is spread across hundreds of holdings in an ETF.

8. Retitling Brokerage Accounts to a Living Trust

[33:36–35:23]

• Listener Question (Lynn, CA): Is it necessary to title a brokerage account in the name of a trust if beneficiaries match?
• Recommendation: “Yes...If you have Living Trust set up, then you do want to retitle your brokerage accounts in the name of that living trust. It takes away the confusion.” – Wes Moss [34:20]
• Reason: Streamlines inheritance, avoids probate. Confirm with your estate attorney for individual circumstances.

Notable Quotes & Memorable Moments

• On Market Panic: “So I’m not panicking about [the dollar]. And I don’t think people need to change…their investment strategy for the over exaggeration that the dollar has just calmed down a little bit.” – Wes Moss [07:31]
• On Retirement Fear: “The real boogeyman is this persistent fear...one day my money’s going to trickle down and I’m not going to have enough.” – Wes Moss [19:55]
• On Simplicity: “Financial planning needs to be made simple because otherwise it spins out of control and you can’t follow it.” – Wes Moss [12:00]
• On Changing Spending: “I've been in the retirement planning world for over 25 years, and people spend less as time goes on. They really do.” – Wes Moss [23:00]
• On Dry Powder: “That dry powder really, I think, helps us mentally not worry about utilizing our money when inevitably it's not if, but when the stock market is down.” – Wes Moss [24:00]

Timestamps of Important Segments

• [01:11] – Gold, the dollar, and putting headlines in context
• [07:34] – Listener Q: The true point of following the 4% rule
• [11:06] – Listener Q: When to use “dry powder” in retirement
• [13:30] – Listener Q: Diversifying a 403B to avoid the AI/tech bubble
• [19:43] – Retirement fear: Running out of money and five ways to quell it
• [26:41] – Listener Q: Calculating the lump sum value of a federal pension with COLA
• [30:23] – Listener Q: Are junk bond ETFs a worthy income play?
• [33:36] – Listener Q: Should a brokerage account be titled in the name of a living trust?

Conclusion

Clark and Wes provide calm, practical, and actionable financial advice—urging listeners to avoid overreacting to scary headlines, stick to time-tested retirement and investment guidelines, and continually revisit plans to ensure peace of mind. The focus remains empowering listeners to take control of their financial future with confidence, clarity, and simplicity.