The Clark Howard Podcast - 03.31.26

“Ask An Advisor with Wes Moss”
Date: March 31, 2026
Host: Wes Moss (with co-host Mallory Boggs filling in for Krista DiBiase)

Overview

In this “Ask An Advisor” episode, Wes Moss and Mallory Boggs field questions from listeners on hot-button personal finance topics, ranging from new government savings accounts for children, effective retirement portfolio allocations, and the nuanced differences between retirement approaches. With practical math, research-backed theories, and relatable anecdotes, the co-hosts aim to help listeners build wealth, avoid common mistakes, and plan for a financially secure future.

Key Topics & Discussion Points

1. New "Trump Account" Savings Vehicles for Kids

[02:22-09:20]

• What is it?
  • New government-backed savings accounts colloquially referred to as “Trump Accounts.”
  • Not politically motivated—a bipartisan financial tool.
  • Eligible participants receive $1,000 in “seed money.”
  • Up to $5,000 can be contributed annually (by parents, grandparents, or even employers).
• Long-Term Potential
  • Saving $5,000/year for 18 years ($90,000 total), invested at a 7% return, could grow to ~$280,000 by age 24.
  • If converted to a Roth IRA at age 18 and held until age 59.5 (without withdrawals), the account could grow to over $3 million.
• Emphasized Shift:
  • “It shifts the conversation towards not just a little bit. Well, you should save younger and younger. It shifts it to the very beginning of life.”
    — Wes Moss [05:37]
• Psychological Impact:
  • Family-wide, multi-generational thinking (not just saving for college) is encouraged.

2. Listener Q&A Segment #1: Portfolio Allocations & Inflation Concerns

[09:23-14:21]

a. Ann from Pennsylvania:

Balanced portfolio advice for retirees who are wary of stock market bubbles (AI, overvalued markets), but fear inflation eroding all-bond/CD portfolios.

• Efficient Frontier Principle:
  • “About where the curve starts to bend is about an 80% bond, 20%... still super conservative account, the curve starts to bend there.” — Wes [12:17]
  • All-bond portfolios may carry more risk than a 20% stocks/80% bonds mix.
• Tactical Advice:
  • Incrementally add some stocks back (e.g., 10% now, 10% later) for inflation protection.

3. Listener Q&A Segment #2: Military Pensions and Stock-Heavy Portfolios

[14:25-16:59]

b. Patrick from Florida:

Query: Should $2.5M in TSP/IRA accounts remain fully in stocks if you have reliable, COLA-adjusted military pensions?

• Integration of Pensions as “Dry Powder”:
  • “Treating our pensions and VA money as dry powder” — Patrick [14:52]
• Wes’s Take:
  • Pensions can act like a bond/fixed income portion, enabling higher equity tolerance.
  • Cautions: Retirees should have some safe assets; suggests an 80–90% equity, 10–20% bonds mix, not 100% in stocks.

4. Listener Q&A Segment #3: Funding a Roth IRA for a Child Abroad

[16:59-18:44]

c. Alan from Georgia:

US-based parents funding a Roth IRA for a daughter earning only German income.

• Rules:
  • Key issue: Whether the daughter’s income is considered “earned income” for US tax purposes, depending on tax treatment (foreign earned income exclusion [FEIE] vs. foreign tax credit).
• Actionable Tip:
  • Wes recommends consulting a CPA who understands international/expat tax law.
  • “If she claims the... foreign earned income exclusion... no, you can't do it. If... foreign tax credit, then it's very possible.” — Wes Moss [17:18]

5. Segment: FIRE (Financial Independence, Retire Early) vs. Retire Sooner Approach

[18:44-28:14]

• Definitions:
  • FIRE: Saving 50%+ of income, living extremely lean lifestyles, aiming for ultra-early retirement (sometimes age 35–40).
  • Retire Sooner: Realistic version of early retirement, focuses on avoiding mistakes, targeted for ages 62–67 or a few years prior.
• Comparative Insights:
  • Wes on FIRE:
    • “It’s a little bit centered around deprivation and perfect spreadsheets rather than what retirees are doing... for a very happy, fulfilling, purpose-filled retirement.” [23:15]
    • “Never working again at age 40 or 45 is just a little bit too young. I appreciate the sentiment... but I think real life dictates being able to retire five to ten years before traditional retirement ages, not 20 to 25 years sooner.” [27:50]
  • Emphasizes the “dimmer switch” approach—phased retirement or scaled-back work, not abrupt career endings.
  • The “money green zone”: You need 25x your annual expenses saved to safely retire.
  • FIRE varieties: “lean FIRE,” “fat FIRE,” “barista FIRE,” and “coast FIRE.”

6. Listener Q&A Segment #4: Roth Conversion Logic

[28:18-31:03]

d. Dave from Detroit:

When is a Roth conversion actually worthwhile vs. simply spending traditional IRA money and delaying Social Security?

• Core Point:
  • “The Roth conversion has taken on its own virality... That’s not true at all. It is great if you are in a position where a Roth conversion makes sense, but it always comes back to a tax question, which is an income management question.” — Wes Moss [28:55]
• Decision Framework:
  • Only convert if you’re paying a lower tax rate now than you would in the future.
  • Don’t do it just because “everyone says so.”

7. Listener Q&A Segment #5: Target Date Retirement Fund Selection

[31:03-34:24]

e. Andrew from Missouri:

Should a retiring wife stick with a 2035 Target Date Fund or push to a 2040 one since withdrawals won’t start right when she retires?

• Explanation:
  • Target funds are just prebuilt asset allocations that get more conservative as the “target” date approaches.
• Advice:
  • If withdrawals won’t start for several years after retirement, it’s reasonable to select a fund with a later date to keep a more aggressive investment mix a bit longer.
  • “It’s less about the year and more about understanding the mix once you open up the hood.” — Wes Moss [34:16]

Notable Quotes & Moments

• Wes Moss on Early Saving:
  • “Family should think about savings as a whole lifetime, not just ‘I’m going to get started in my 20s or 30s.’” [05:37]
• On all-bond portfolios at risk:
  • “The risk actually goes up... and your return, expected, actually goes down if you get too far along the curve.” — Wes, on efficient frontier [13:57]
• On FIRE movement:
  • “The reason the concept has never really sat well with me is that a lot of the FIRE mentality... is centered around deprivation and perfect spreadsheets...” [23:15]

Timestamps for Important Segments

• [02:22] — “Trump Accounts”: What are they? How do they work?
• [09:23] — Ann’s Retirement Allocation Dilemma: Bonds vs. Stocks, Efficient Frontier
• [14:25] — Patrick’s Pension “Dry Powder” and Equity Weighting
• [16:59] — Funding US Roth IRAs with Foreign Income
• [18:44] — FIRE vs. Retire Sooner: Realistic Retirement Planning, Psychological Dimensions
• [28:18] — The Real Math of Roth Conversions
• [31:03] — Choosing the Right Target Date Retirement Fund

The Bottom Line

This episode emphasizes the value of long-term, early saving (especially with new government-backed accounts), balanced and diversified portfolios (with a real understanding of risk), realistic retirement planning tailored to actual lifestyle desires, and the critical importance of understanding the tax consequences—not just following the latest trends or rules of thumb. Wes Moss and Mallory Boggs advocate for informed, flexible planning that adapts to changing economic realities and individual family needs.