Podcast Summary: The Clark Howard Podcast – Episode 06.03.25 "Ask An Advisor With Wes Moss"

Release Date: June 3, 2025
Host: Clark Howard
Guest: Wes Moss, Fiduciary Advisor

Introduction

In this episode of The Clark Howard Podcast, host Clark Howard, along with Krista Dibiaz, welcomes Wes Moss from fiduciary firm Team Clark for the segment "Ask an Advisor." The discussion primarily revolves around two pressing financial topics: the investment potential of gold and the looming impact of artificial intelligence (AI) on white-collar jobs.

1. The Investment Case for Gold

Historical Performance and Current Trends
Wes Moss delves into the enduring appeal of gold as an investment. While gold has been a valuable store of wealth for thousands of years, its performance as an asset class has been a subject of debate.

• Price Trajectory: Currently, gold is trading around $3,300 per ounce. Historically, from 1980 to 2005, gold prices remained relatively stagnant, hovering around $500 per ounce, resulting in a flat investment for 25 years.

• Recent Performance: Gold experienced a significant surge from $1,700 per ounce in 2011 to $3,300 per ounce, marking an 8.4% annual rate of return over the long term. However, this growth has been punctuated by considerable volatility, including an 80% spike during the 1973-75 recession and a 35% loss from 2011 to 2015.

Warren Buffett’s Perspective
Moss highlights Warren Buffett's long-standing skepticism towards gold as an investment.

"Warren Buffett would rather own all the farmland in the US versus all the gold in the world."
[04:00]

Buffett perceives gold as a non-productive asset lacking dividends or interest, contrasting it with farmland, which generates income through crops.

Investment Recommendations
Given gold's volatility, Moss advises a cautious approach:

• Allocation Suggestion: Allocate 5% of your total investment portfolio to gold. This ensures exposure to gold's potential appreciation during economic downturns while mitigating the risk associated with its price fluctuations.

"If you do own gold, I would be prepared for some pretty serious volatility."
[07:45]

2. Listener Question: Allocating 401(k) Funds to Gold

Question from Paul, Illinois:
Paul inquires whether reallocating his 401(k) into a gold-focused IRA account is prudent, especially with looming concerns about the dollar and stock market volatility. He has 13 years until retirement.

Wes Moss’s Response:
Moss cautions against over-concentration in gold:

"I don't think it's advisable to be jumping all into this one asset that is more volatile than people really think."
[09:51]

Instead of heavily investing in gold, Moss recommends diversifying with safer assets like short-term treasuries, which offer stability and modest returns without the high volatility associated with gold.

3. The Impact of AI on White-Collar Jobs

Industry Insight:
The discussion shifts to the forecasted impact of AI on employment, referencing a statement by the CEO of Anthropic, a leading AI company.

"He believes that 50% of all entry-level white-collar jobs in the United States will go away over the next one to five years."
[22:15]

Analysis of Job Displacement:
Moss quantifies this potential disruption, estimating that 8 to 9 million entry-level jobs could be at risk. He draws parallels with past technological revolutions—such as the Industrial Revolution and the advent of the internet—which initially eliminated certain jobs but ultimately led to greater economic growth and job creation.

"Every time we've had a big innovation... the economy actually grew during those technological revolutions."
[23:45]

Potential for New Job Creation:
While acknowledging the probable loss of jobs, Moss emphasizes the creation of new roles that AI and emerging technologies might usher in. He highlights sectors that are less likely to be automated, such as those requiring human emotion and relationship-building (e.g., real estate, therapy).

"Anything that has to do with human emotion... we can't replace relationships with a computer screen."
[28:14]

Investment Strategies Amid AI Disruption:
Moss advises against targeting specific AI companies for investment due to the unpredictable nature of technological advancements. Instead, he recommends:

• Broad Index Investing: By investing in broad market indices, investors can capture growth from emerging leaders within the market without the risks associated with selecting individual AI stocks.

"The best way to at least know you're going to capture at least who's winning is to own the whole market."
[33:15]

4. Listener Question: Investment Choices in an AI-Driven World

Question from David, Florida:
David seeks advice on investment options amidst concerns that AI advancements may destabilize the stock market.

Wes Moss’s Response:
Reiterating his earlier point, Moss suggests:

"Indices are weighted towards the biggest companies and that has been a worry."
[35:05]

However, he maintains that broad index funds remain a robust investment choice, allowing investors to benefit from overall market growth and the emergence of new industry leaders without needing to predict which specific companies will thrive.

5. Listener Question: Equal-Weighted Indices vs. Cap-Weighted Indices

Question from Lucas, California:
Lucas wonders if moving away from cap-weighted indices to equally weighted indices could mitigate fears of an ETF bubble.

Wes Moss’s Response:
Moss acknowledges the validity of using equally weighted ETFs but points out the dominance of cap-weighted indices in the market.

"The market for cap weighted indices is so gigantic... it's a multi-trillion dollar industry."
[35:05]

Despite the feasibility of equally weighted investments, he notes that cap-weighted indices will likely remain prevalent due to their established presence in the investment landscape. However, for those seeking a more balanced approach, equally weighted ETFs offer an alternative.

6. Listener Question: Renting vs. Selling a Paid-Off Home

Question from Don, North Carolina:
Don and his spouse are considering whether to rent out their fully paid-off current home for $2,300 per month while covering the mortgage on their new home, both accruing similar monthly costs.

Wes Moss’s Response:
Moss evaluates the scenario by analyzing potential returns and the responsibilities associated with property management.

• Financial Analysis:
  Renting out the home could yield approximately a 5% net return, based on his calculations.

• Operational Considerations:
  Managing a rental property involves responsibilities akin to a "mini job," including maintenance and tenant management. While manageable for one property, scaling to multiple rentals increases complexity.

"Through my research, happy retirees don't have a mortgage on their primary home."
[38:45]

Recommendation:
For retirees, Moss suggests the peace of mind that comes with eliminating a mortgage might outweigh the financial benefits of renting out the property. Conversely, for those comfortable with the additional responsibilities and seeking higher returns, renting remains a viable option.

7. Conclusion and Final Thoughts

Wrapping up the episode, Krista Dibiaz emphasizes the value of the insights provided and encourages listeners to share the episode. The discussion underscores the importance of diversification in investments, cautious optimism regarding technological advancements, and the need to balance financial strategies with personal circumstances and risk tolerance.

Notable Quotes:

• Wes Moss on Warren Buffett’s View on Gold:
  "Warren Buffett would rather own all the farmland in the US versus all the gold in the world."
  [04:00]

• On Gold’s Rate of Return:
  "If you had just bought it back in 1980 and held it until today, it would be about an 8.4% rate of return."
  [06:10]

• On AI and Job Losses:
  "He believes that 50% of all entry-level white-collar jobs in the United States will go away over the next one to five years."
  [22:15]

• On Broad Index Investing:
  "The best way to at least know you're going to capture at least who's winning is to own the whole market."
  [33:15]

• On Retirees and Mortgages:
  "Through my research, happy retirees don't have a mortgage on their primary home."
  [38:45]

This comprehensive discussion between Clark Howard and Wes Moss provides valuable insights into navigating investments in gold and preparing for future job market shifts due to AI advancements. Listeners are encouraged to consider diversification, understand their risk tolerance, and stay informed about technological impacts on the economy.