The Clark Howard Podcast

Episode: 02.17.26 – Ask An Advisor With Wes Moss
Date: February 17, 2026
Host: Clark Howard
Guest: Wes Moss

Overview

In this Ask An Advisor episode, Clark Howard is joined by financial advisor Wes Moss for a deep dive into practical financial issues, especially those facing listeners directly. The discussion centers on navigating cash flow issues for small business owners, the current state of the job market (with new labor data insights), investment diversification, maximizing savings returns in the current interest rate environment, long-term care insurance, and responding to listener-submitted personal finance questions.

Key Discussion Points & Insights

1. Cash Flow Management for Small Business Owners

[01:56 – 08:49]

Scenario:
Clark presents a hypothetical (but common) situation for small business owners: solid business on paper, but suffering a cash crunch due to delayed client payments.

• Wes Moss's Framework:
  • First, look to non-retirement brokerage accounts. Liquidate as needed, accept capital gains taxes if required.
  • Roth IRA contributions can be withdrawn at any time—tax and penalty free. These are after-tax dollars and accessible in an emergency.
  • If you withdraw more than contributions from a Roth IRA and are under 59½, expect taxes and penalties on the earnings portion.
  • If the cash crunch is guaranteed to be short, consider using the “60-day rollover” rule: You can take a full Roth distribution and redeposit within 60 days with no tax/penalty, but only once a year.
• Key Details:
  • Must strictly adhere to the 60-day window.
  • The entire amount must be redeposited in time, or the distribution becomes permanent with tax/penalty implications.

Notable Quote:

“Remember your Roth contributions... those are free and clear—you can pull out your contributions, you don’t pay taxes on them and you don’t pay penalties on them.”
— Wes Moss [06:49]

2. Small Cap Investments & Reversion to the Mean

[08:49 – 11:10]

• Listener Question: Is an 18% allocation to small cap value stocks too high for a portfolio in the low 40s?
• Wes Moss's Take:
  • Large cap growth has been dominant, but historically, small caps outperform over extended periods due to reversion to the mean.
  • Recently, small caps have started to catch up, signaling potential for continued rotation.
  • Diversification is key. The S&P 500 is not well-diversified due to its heavy weighting in the top 10 stocks.

Notable Quote:

“That’s really what you’re doing—I think it’s a good thing. And I don’t think 18%, as long as you have a higher risk tolerance, is totally fine.”
— Wes Moss [10:44]

3. Why Savings Account Rates Remain Low

[11:10 – 12:49]

• Listener recalls 6% savings rates in the 1990s but now gets 0.25% despite high mortgage rates.
• Wes Moss:
  • It's unacceptable for banks and credit unions to pay paltry rates.
  • Interest rate spreads (“net interest margin”) are the key: Banks maximize profit by paying little and lending at higher rates.
  • Action Step: Move cash beyond your basic checking needs to a high-yield savings or money market account (current rates ~3.5–4%).
• Clark & Wes: Protect against identity theft; freeze credit, use multifactor authentication.

Notable Quote:

“It is your job now to make sure that if you have a larger chunk of money and it’s going to sit in cash…it should be at least getting 3.5% or higher.”
— Wes Moss [13:25]

4. Long-Term Care Insurance (LTCI) Decisions

[15:03 – 18:06]

• Listener Question: In Washington State, with mandatory state LTC coverage (small benefit), should they buy more with $1.2 million in assets and plans to retire soon?
• Wes Moss:
  • State benefit covers very little—capped at ~$35,000–$40,000.
  • If you have limited assets, Medicaid eventually covers LTC.
  • If you have $3 million+, you can likely “self-insure.”
  • Today’s LTC policies are extremely expensive due to underpricing in the past. There are few “good” options.
  • Listener is on track to self-insure—don’t buy extra LTC insurance.

Notable Quote:

“I want you to be in the self-insured camp... Those income streams effectively are your new paycheck for the rest of your life.”
— Wes Moss [17:19]

5. Latest Jobs Data & Economic Outlook

[21:04 – 28:10]

• Wes Moss’s Analysis:
  • Temporary tracking disruptions (government shutdowns) muddied recent labor data.
  • Big negative revision to 2025 jobs numbers (900,000 fewer jobs than initially reported), but recent data (Jan 2026) shows positive trends.
  • January 2026:
    • +130,000 jobs
    • Unemployment down to 4.3%
    • Underemployment (“U6”) down as well
    • Wages up 3.7% YoY, outpacing inflation
    • Employment-to-population ratio for prime age workers at a robust 80.7% (up 5.6% since 2021)
  • Education and unemployment:
    • More education = lower unemployment (college degree: 2.9%).
  • Media headlines often exaggerate layoffs, losing sight of context.
  • Implications:
    • Labor market overall strong; supports consumer spending and economic growth.
    • Signals that the Federal Reserve will likely maintain current interest rate levels—good for bonds and equities.

Notable Quote:

“So I think the bottom line, pretty good job numbers that we’re going to have to monitor, which is in turn really good news for your 401k.”
— Wes Moss [27:51]

6. Listener Q&A Highlights

[28:10 – 38:03]

A. Educators’ Investment Options:

• 403(b) and 457 plans can have high fees, especially 403(b)s with annuities. 457 plans (especially state-run) usually better.
• Don’t move to a traditional IRA now (high-income, no deduction, messy after-tax contributions).
• Action Step: Look into “in-service rollover” once eligible (often at 59½) to escape high fees.

B. Social Security Math for Early Retirees:

• Listener questions how someone retiring in late 40s can get ~$80K in Social Security.
• Wes: Calculation is based on top 35 earning years; lacking some years (goose eggs) doesn’t lower benefit as dramatically as expected (5–7% rather than 15% reduction).

C. Tracking Total Return for Investments:

• Brokerages often show only price gain/loss, not total return (including dividends/interest).
• Manual tracking or portfolio management software is required for a true picture.
• Be mindful: Especially misleading for fixed income and mutual funds with distributions.

Notable Quote:

“It is the number one misdirected question I get when it comes to performance. Shouldn’t we sell this XYZ thing…because it looks like it’s made no money? Why? Probably because you’re not counting any of the income and the big brokerage firms just don’t have a good way to do that.”
— Wes Moss [35:36]

Timestamps for Important Segments

• [01:56] – Small business cash stress & Roth/brokerage solutions
• [08:49] – Small cap investments, historical performance, and diversification
• [11:10] – Why savings accounts often don’t keep up with interest rates
• [15:03] – Long-term care insurance: who really needs it?
• [21:04] – Jobs report breakdown, education trends, and economic implications
• [28:10] – Q&A: Educators’ retirement funds, Social Security benefit calculations, tracking true investment returns

Memorable Quotes

• “If you need the money to float yourself, particularly small business owners, it is accessible—[Roth] contributions can come out tax-free, penalty-free.”
  — Wes Moss [07:58]

• “I think we’re in a stable interest rate environment…that’s a good thing for bond investors. It’s also a good thing for equity investors.”
  — Wes Moss [27:30]

• “An object at rest tends to stay at rest…and right now you’re at rest. The money market’s just sitting there.”
  — Wes Moss [14:10]

Tone & Style

The discussion is practical, upbeat, and direct. Clark is methodical and supportive, while Wes is clear, detailed, and not afraid to call out industry shortcomings or push for savvy consumer action.

Summary

This episode of "Ask An Advisor" delivers a rapid-fire, actionable journey through pressing financial topics: managing cash flow crises with tax-smart Roth IRA withdrawals, the logic behind diversifying into small caps, maximizing cash yields amidst stingy banks, and the realities of long-term care insurance. Wes Moss brings fresh labor market perspective, showing caution but overall optimism about the U.S. economy and its impact on individual investors. Listener Q&A rounds out the show with sharp, relatable advice on retirement accounts, Social Security math, and measuring true investment returns. The emphasis remains on consumer empowerment—knowing your options and insisting on better solutions for your own financial health.