The Clark Howard Podcast: Ask An Advisor with Wes Moss (02.10.26)

Date: February 10, 2026
Host: Clark Howard
Guest: Wes Moss (Financial Advisor)

Overview

This episode is a special "Ask An Advisor" session, featuring money expert Clark Howard and guest Wes Moss. Together, they dive deep into crucial personal finance topics, emphasizing their mission to help listeners "save more, spend less, and avoid getting ripped off." The main themes include the persistent impact of inflation, investment strategies for various retirement scenarios, the risks associated with employee stock ownership plans (ESOPs), the debate between growth and value stocks, and tailored answers to listener questions about real-world financial choices. The episode stands out for its approachable, candid style and practical wisdom.

Key Discussion Points & Insights

1. The Comeback Pattern of Inflation

[02:04 – 09:35]

• Inflation isn't always "over" when rates fall:
  Wes Moss explains that after a major inflation surge (like post-pandemic), there's a historically clear pattern—87% of the time in major economies, a second inflation wave returns within 3 to 5 years, regardless of the original cause.

  • “87% of the time, once we get a 6% inflation rise, it comes back within three to five years.” — Wes Moss [05:29]

• Why does this happen?

  • Business Pricing Behavior: After a shock, companies respond quickly to inflation by raising prices, but consumers are slow to adjust and resist higher costs until they eventually acclimate.
  • Labor Market Reaction: As higher prices become the new normal, employees eventually demand higher wages, which then creates further inflationary pressure.

• Real-life examples:
  Increases in the price of everyday items like burritos serve as a tangible sign of this phenomenon.

  • “The burrito used to be 6 and now it's 12. I'm just not going to buy it. I can't get used to it.” — Clark Howard [06:16]

• Advice:
  Don’t become complacent when inflation rates drop; remember, previous price increases are ‘stacked’ and embedded in the economy. This is a core reason to invest—to protect your purchasing power over time.

2. Listener Q&A: Retirement Strategy and Tax Efficiency

[09:35 – 12:53]

• Question: Mike, preparing for retirement at 59, seeks advice on drawing down multiple retirement accounts with a focus on tax efficiency.

• Wes’s Guidance:

  • Use periods of lower income before Social Security starts to convert traditional 457 plan assets to a Roth account, maximizing conversions within the 24% tax bracket.
  • “Utilize everything you can in that 24% bracket, Mike. ... Now is the time to do that.” — Wes Moss [11:08]
  • On 457-to-401k conversions for withdrawal control: Not necessary unless you want to draw only from bond funds, but it's generally fine to withdraw proportionally unless retiring before 59.5.

3. ESOP Pitfalls and Illiquidity

[12:53 – 17:33]

• Question: Lori is concerned about a major drop in the value of her husband’s private-company ESOP.

• Discussion:

  • Private ESOPs are risky—it’s essentially a concentrated bet on a single (often illiquid) stock.
  • Major declines can result from business downturns or from many employees retiring simultaneously, triggering forced buybacks and valuation pressures.
  • “ESOPs are just like investing in one stock. ... A lot can go wrong with a private company.” — Wes Moss [16:36]
  • Employees can—and should—request Form 5500 and financial disclosures to better understand the plan’s status.

• General Rule:

  • Diversify: Don’t let company stock (even in ESOPs) exceed 10% of your portfolio. More is riskier.

4. Asset Allocation in Retirement—Stocks vs. Bonds

[17:33 – 19:06]

• Question: Larry asks if, with 100% stock ETFs in retirement, he needs to add bonds.

• Wes’s View:

  • If fixed income covers expenses and you have 3 years of cash reserves, there’s no need to increase bond holdings, provided you can tolerate volatility.
  • “You do want to invest it appropriately. If you have a high risk tolerance ... I don't see you needing to go beyond the stock ETFs.” — Wes Moss [18:20]
  • “You already do have a piece of the pie ... your dry powder is your safety asset.” — Wes Moss [18:50]

5. Growth vs. Value Stocks: Red Apples and Green Apples

[21:41 – 29:49]

• Explanation:
  Wes uses apples as an analogy:

  • Growth stocks = “Red, shiny apples”—sexy, high-flying, reinvest heavily, low dividends.
  • Value stocks = “Green, tart apples”—reliable, mature, steady dividends, lower growth.

• Growth Example: Amazon's early years, plowing all revenue into expansion instead of profits.

  • “He said, we’re just doing it at a much larger scale than anyone has ever done.” — Wes Moss [25:19], recalling Bezos’ interview.

• Market Trends:
  Growth and value stocks have alternated as market leaders over the decades. Recent years favor growth, but value has shown momentum lately.

• Investment Philosophy:

  • “It’s nice to have both ... when growth stocks aren’t doing well, I feel I’m really glad I own value and dividends.” — Wes Moss [29:14]
  • As you near retirement, it’s wise to shift somewhat toward value/dividend payers for stability and income.

6. Deploying Large Sums: Lumpsum vs. Dollar-Cost Averaging

[29:49 – 33:55]

• Question: Matt, a disciplined saver sitting on a large inheritance, worries about market overvaluation and timing.

• Counsel:

  • Don’t try to outsmart the market—waiting for a dip could mean missing years of returns.
  • Stretch your time horizon: "You have 40, 50 years of investing, Matt. ... just stretch out the time horizon and put the inheritance money to work." — Wes Moss [33:11]
  • Dollar-cost average (split investing over 12–18 months) to reduce anxiety about market timing.

7. Buffered Notes/Structured Products: Hidden Pitfalls

[33:55 – 37:38]

• Question: Scott considers a “buffered account” (structured note) to limit downside over 6 years but cap gains.

• Critique:

  • The downside protection looks attractive but is rarely needed for a six-year S&P 500 horizon; you’re essentially paying hefty fees and losing dividends and liquidity.
  • True risk: If the issuing bank fails (like Lehman Brothers in 2008), you could lose everything—regardless of market performance.
  • "It sounds like it’s about the market, but it’s not. It’s a note, it’s an obligation of the company. ... When Lehman went under, those notes went to zero dollars." — Wes Moss [36:37]
  • Bottom line: Avoid these products—stick with direct market investing.

8. Lump Sum Pension Payout vs. Annuity

[37:38 – 41:06]

• Question: Dennis, forced into early retirement, seeks advice: Lump sum pension payout or monthly payments?

• Answer:

  • The monthly payout is okay, but the lump sum provides flexibility and, with a direct IRA rollover, defers taxes.
  • “As long as you do a rollover into a retirement account, then you’re fine on taxes, Dennis.” — Wes Moss [40:38]
  • Make sure to roll directly into an IRA, avoiding immediate taxation and keeping options open.

Notable Quotes & Memorable Moments

• On Inflation’s Lasting Impact:
  "Even though the rate is fine, it’s the accumulation of all that inflation that makes the burrito still $12."
  — Wes Moss [08:42]

• On ESOPs:
  "It is a very, very important thing to understand is that ESOPs are just like investing in one stock. ... A lot can go wrong with a private company."
  — Wes Moss [16:36]

• On Growth vs. Value:
  "It’s nice to have both. ... They come together and they make one giant market with two very different components."
  — Wes Moss [29:14, 29:44]

• On Investing Lumpsums:
  "Think about it. Two or three years ago, if you received an inheritance and you left it in cash ... you’ve missed almost 100% return."
  — Wes Moss [31:50]

• On Structured Products:
  "You’re paying someone to impose a restriction on you. ... All you’re doing is paying for them to impose restrictions on your money. I think that answers the question."
  — Wes Moss [36:14, 37:20]

Timestamps for Important Segments

• Inflation patterns & investing rationale: [02:04–09:35]
• Retirement portfolio withdrawal strategy: [09:35–12:53]
• ESOP dangers & legal recourse: [12:53–17:33]
• Retiree asset allocation & dry powder: [17:33–19:06]
• Growth vs. value stocks (apples analogy): [21:41–29:49]
• Deploying large sums (timing vs. averaging): [29:49–33:55]
• Structured notes / buffered accounts: [33:55–37:38]
• Lump sum pension rollover advice: [37:38–41:06]

Tone & Style

Clark and Wes maintain a relaxed, friendly, and practical tone. Wes blends clear explanations with memorable analogies (“apples”, “financial burritos”), and both hosts answer listener questions directly, often using vivid real-world examples.

In Summary

This episode shines as a practical financial Q&A, steering listeners through complex issues like the shadow of inflation, retirement drawdown strategies, unseen risks in ESOPs and financial products, and the constant challenge of market timing. The actionable guidance—anchored in historical patterns and behavioral wisdom—encourages informed, patient, and diversified investing for financial independence.