The Clark Howard Podcast

Episode: Ask An Advisor with Wes Moss

Date: March 10, 2026
Host: Krista Dibiaz
Guest Advisor: Wes Moss

Episode Overview

This episode of The Clark Howard Podcast focuses on answering listener questions about investing—specifically international versus domestic stocks, the practicalities of rebalancing, interpreting retirement statistics, IRA strategies, and the all-important “rich ratio” for retirement readiness. Wes Moss offers insights grounded in behavioral finance and practical planning, guiding listeners through market trends, portfolio management, and key retirement principles. The tone remains conversational, encouraging both curiosity and critical thinking about financial decisions.

Main Topics & Key Insights

1. International vs. Domestic Stocks: Is It Time to "Go Global"?

([00:49] – [10:05])

• Listener Concerns: More people are wondering whether to increase international stock allocations, given strong one-year performance.
• Market Performance Stats:
  • S&P 500: up ~16%
  • Broad international ETF: up ~36%
• Behavioral Caution:
  • Wes Moss: "We have a very pronounced behavioral idea when it comes to investing—that’s called recency bias." ([02:26])
  • Investors often chase recent winners, but markets rotate leadership. Just as small caps are catching up now, international is playing catch-up versus years of U.S. outperformance.
• U.S. Dollar & Reserve Status:
  • Media headlines (“Reign of the dollar is coming to an end”) have spurred some fear, but the global payment system is still deeply entrenched in the U.S. dollar (~60%).
  • Comparison with euro (~15%), yuan (~5%), yen/pound (~3% each). Digital currencies: negligible impact.
• Diversification Reminder:
  • U.S. multinational companies derive significant revenue overseas (e.g., McDonald’s, Apple, Intel, Nike, Procter & Gamble >50% non-U.S. revenue).
  • Owning large U.S. companies provides built-in diversification and a potential hedge if the dollar weakens.
• Actionable Takeaway:
  • “Before you get your U.S. stocks to try to have a larger portion in non-U.S. domiciled companies, take a look and just see what you own.” ([09:42])
  • Asset allocation, not chasing performance, should drive international exposure.

2. Listener Q&A With Wes Moss

A. Rebalancing & “Glad I Missed Out Gladys”

([10:05] – [13:18])

• Question from Gary in Nevada:
  • Observing FOMO (Fear of Missing Out) investing vs. "Glad I Missed Out Gladys" who gravitates to prior losers, as happens in rebalancing.
• Wes’s Take:
  • Rebalancing essentially makes you "Gladys": buying more of what’s lagged, selling what’s run ahead.
  • Analogy: Not rebalancing is like “a frog boiling in water”—risk exposure rises subtly over time, potentially blowing up when markets turn.
  • Quote: “Rebalancing every year can help you avoid sequence of return risk…and avoid getting caught up in the equity storm.” ([12:45])

B. Misleading Retirement Statistics & Home Ownership

([13:18] – [17:19])

• Question from Steve in Wisconsin:
  • Questions about confusing statistics on average 401k balances and “40% of homes are owned outright.”
• Wes’s Response:
  • Account-level averages tell us little; what matters is net worth (inclusive of all accounts and home equity).
  • The 40% stat refers to individuals, not corporate owners.
  • Net Worth Benchmarks:
    • 1 in 3 U.S. households: $500k+
    • 1 in 5: $1M+
    • Top 10%: ~$1.9M+
    • Median: $192,000
  • Key Point: “Your overall net worth…that’s what matters.” ([16:00])

C. Non-Deductible IRA vs. Brokerage Account

([17:19] – [20:06])

• Question from Mike in Ohio:
  • Ineligible for Roth or deductible traditional IRA, uses non-deductible IRA. ChatGPT suggests brokerage account instead.
• Wes’s Advice:
  • Non-deductible IRAs are only worthwhile if quickly backdooring into a Roth; otherwise, they complicate taxes.
  • Brokerage accounts: lower long-term capital gains taxes, more flexibility.
  • Quote: "There’s tax efficiency in a regular brokerage account. There’s more simplicity..." ([18:50])

3. The Retirement “Rich Ratio”—The Number That Still Matters

([22:54] – [28:55])

• Wes Moss:
  • The "rich ratio" = Have divided by Need (monthly net income / monthly expenses).

  • 1 = Financially rich; <1 = Financially strained, regardless of income.

  • Backpack of Rocks Analogy:
    • Every extra “rock” (debt, spending) in your retirement “backpack” makes the journey harder.
    • Lighten the load to improve your ratio.
    • Quote: "Rich isn’t about the income, it’s about the margin and the cushion, the safety." ([26:05])
  • Example Scenarios:
    • Tom: $12k need, $8k income → Ratio 0.67 (strain despite being “wealthy”)
    • Susan: $4k need, $5.6k income → Ratio 1.42 (cushion and comfort)
  • Advice: Focus on reducing fixed “needs” (especially mortgage) to increase margin.

4. Additional Listener Questions

A. Calculating Net Worth & Including Pensions

([28:55] – [32:50])

• From Neil in California:
  • Retired firefighter with strong pension, low expenses, wants help calculating net worth and how to factor the pension.
• Wes’s Breakdown:
  • Net worth = assets – liabilities.
  • Pensions can be “capitalized” (e.g., annual income / expected return), treating the pension as a bond holding for allocation purposes.
  • Quote: “It would take a net worth of, call it $2 million, to be in the position that you’re in today.” ([32:30])
  • Neil’s “rich ratio” is very high: “Like three and a half or four. It's awesome.” ([32:46])

B. What To Do With a Failed Vacation Fund

([32:50] – [35:57])

• From Christopher in Oregon:
  • Saved $100k for a vacation house—unlikely to buy, mortgage on main at 3.65%, $80k balance.
• Wes’s Approach:
  • Rule of thumb: only use up to a third of liquid assets to pay off mortgage—but with stable employment (government), paying it off may be worthwhile: “I doubt you’ll be upset if you pay it off.”
• Krista: “Take that mortgage payment every month and put that somewhere else.” ([35:57])

C. Best Investments for a Young Saver

([36:00] – [37:34])

• From Timothy in Oregon:
  • 19-year-old daughter has $3,000 saved; can’t do monthly contributions, has a Vanguard account.
• Wes’s Recommendation:
  • All-equity, ultra-low-cost total stock market or S&P 500 index fund—total stock market preferable for someone young for added small-/mid-cap exposure.
  • Lump contributions as income allows is fine.
  • Krista: “Good for her for starting so young!”

Notable Quotes & Memorable Moments

• Wes Moss [02:26]: “We have a very pronounced behavioral idea when it comes to investing—that’s called recency bias.”
• Wes Moss [09:42]: “Before you get your US stocks to try to have a larger portion in non US domiciled companies, take a look and just see what you own.”
• Wes Moss [12:45]: “Rebalancing every year can help you avoid sequence of return risk…and avoid getting caught up in the equity storm.”
• Wes Moss [16:00]: “Your overall net worth…that’s what matters.”
• Wes Moss [18:50]: “There’s tax efficiency in a regular brokerage account. There’s more simplicity in a brokerage account. And unless you’re trying to do a backdoor Roth...”
• Wes Moss [26:05]: "Rich isn’t about the income, it’s about the margin and the cushion, the safety.”
• Krista Dibiaz [27:50]: “Cushion is comfort, like you’re saying.”
• Wes Moss [32:46]: “So he’s got a rich ratio of like three and a half or four. It’s awesome.”

Key Timestamps

• 00:49: Introduction to international vs. domestic investing
• 02:26: Recency bias and its danger for investors
• 05:59: U.S. dollar’s continued global dominance
• 09:42: Built-in international exposure through multinational U.S. stocks
• 10:05: Listener Q&A begins (FOMO, rebalancing)
• 12:45: Boiling frog analogy for risk creep
• 14:11: Retirement and home ownership statistics explained
• 17:48: Non-deductible IRA vs. brokerage—tax implications
• 22:54: The “rich ratio”—the ultimate retirement metric
• 27:50: Comfort, margin, and adjusting needs for retirement
• 28:55: Calculating net worth when you have a pension
• 32:50: What to do with a vacation fund you no longer plan to spend
• 36:20: Investment advice for a young saver (Vanguard index funds)

Summary

This episode delivers a comprehensive walkthrough of current investing trends, portfolio management, and retirement readiness principles, with direct, relatable listener examples. Amidst evolving markets, Wes Moss returns to fundamentals—balance, diversification, and real-life ratios that determine true financial comfort. As always, listeners are encouraged to assess their own needs versus resources, rebalance accordingly, and focus not on fleeting trends, but lasting principles: “rich isn’t about income; it’s about having margin and cushion.”