The Clark Howard Podcast
Episode: 09-23-25 – Ask An Advisor With Wes Moss
Date: September 23, 2025
Host: Clark Howard
Guests: Wes Moss (Advisor), Krista Dibiaz (Co-Host)
Episode Overview
On this “Ask An Advisor” edition of The Clark Howard Podcast, money expert Clark Howard’s team delves into the recent Federal Reserve interest rate cut, the implications for mortgages and the stock market, and addresses pressing listener questions about business banking, retirement strategies, dividend investing, Roth IRAs, and more. Wes Moss, Certified Financial Planner, provides actionable advice for individuals and small business owners, and gives a candid exploration of Americans' biggest retirement fear—running out of money. Throughout, Wes keeps the discussion approachable, pragmatic, and lighthearted.
Key Discussion Points & Insights
1. The Federal Reserve’s Recent Interest Rate Cut
Segment begins at [01:36]
-
Interest Rate Cycle Context:
Wes Moss recaps how, for years post-2020, the Fed held rates at zero, making borrowing cheap. In response to inflation, the Fed elevated rates significantly—pushing mortgage rates from 3% up to nearly 8% by October 2023, resulting in a housing market freeze. -
Current Situation:
The Fed has just cut rates by a quarter point. The current 30-year fixed mortgage average stands at 6.13%, down from the peak but still above pandemic lows."If you have a 3% mortgage, you’re not moving. You're locked in, and you have very little motivation to start...and trade in your 3% mortgage for a 6% mortgage." (Wes Moss, [05:07])
-
Impact on Borrowers:
Borrowers with variable-rate debt or new borrowing will see slight relief, but the cut is minor."A quarter of a point is not that much, but it's not nothing." (Wes Moss, [08:53])
-
Fed’s Balancing Act:
The Fed is torn between keeping inflation in check (still hovering at 3%, above the desired 2%) and preventing job market slowdown (job growth has slowed to a crawl)."They really had to thread the needle here. And essentially what Chairman Powell said is...we've got risk to the downside in the job market, and that seems to be slightly bigger of a risk than more inflation. And that's why they cut rates." (Wes Moss, [07:19])
-
Historical Stock Market Impact:
Wes references 40+ years of history: in 19 out of 20 past instances where the Fed cut rates while the stock market was near a high, stocks were up a year later, by an average 12.9%."You’ve seen a 95% historical data that shows markets are up on average 12 months later." (Wes Moss, [09:04])
2. Listener Q&A with Wes Moss
A. Small Business Savings Strategy
Karen from Wisconsin, [09:34]
- Scenario: Karen’s daughter, a photographer, keeps profits in a no-interest business checking account.
- Advice:
- Operate under an LLC.
- Only keep a buffer in the business checking.
- Move surplus to a business high-yield savings account—“Banks count on us being lazy…You have to be vigilant.”
- For longer-term goals (like buying a wedding venue in 5–7 years), consider a balanced mutual fund, not something aggressive.
"Put as much as you can in High Yield Savings and then if there’s some real money there, invest at least some of it for a big purchase in the future." (Wes Moss, [13:56])
B. Dividend Investing Choices
John from Rhode Island, [14:16]
- Reinvest Dividends or Allocate Manually?
- Both effective; for simplicity and consistency, automatic dividend reinvestment (DRIP) is best.
- Manual reinvestment lets you rebalance, useful in retirement.
"The easier and frictionless we can make investing...usually the better." (Wes Moss, [15:10])
C. Backdoor Roth IRA Logistics
Michelle from Oregon, [16:36]
- Issue: Earnings over Roth IRA limit require recharacterization, producing excess gains that complicate things.
- Advice:
- It's a “good problem to have”—you’re maximizing all available options.
- Simplifying by making annual contributions and converting right away may be best; don’t chase perfection.
"The enemy of a good plan...is the dream of a perfect plan." —John Bogle, quoted by Wes Moss ([19:06])
D. Retirement's Biggest Fear: Running Out of Money
Wes’s research, [22:52]
- Audience Questions: What keeps you up at night? Is it headlines, geopolitics, the economy?
- Core Anxiety:
- Nearly half of Americans cite “running out of money in retirement” as a top fear, across all wealth levels—even among those with $3M+ saved.
- Inflation erodes purchasing power (dollar has lost 47% since 2000).
- The solution is clarity through planning, not just piling up more assets.
- “Rich ratio” formula: income ÷ expenses.
- Regular review and updating of the plan helps alleviate worry.
"Clarity is the antidote to not worrying about running out of money." (Wes Moss, [27:41])
E. Spousal IRA Contributions in Retirement
Jeffrey from Virginia, [30:42]
- If your spouse has earned income and you file jointly, you can contribute the max to your Roth IRA—even if you are retired and have no earned income yourself.
F. IRA 72T Withdrawals and New Employment
Jason from Florida, [32:26]
- It's possible to take 72T distributions from an IRA and later re-enter the workforce contributing to a 401(k).
- Consider applying 72T rules only to a portion of your IRA, to preserve flexibility.
G. High-Income ETFs—Too Good to Be True?
Jonah from Florida, [34:47]
- Caution advised with income-focused ETFs like QQQY; payouts may look attractive, but they're based on options premium, not dividends/interest.
- Net asset value may steadily decline.
“You never want to hone in on just one thing...particularly something when you’re getting the whiff of too good to be true.” (Wes Moss, [35:41])
Notable Quotes & Memorable Moments
-
On mortgage market inertia:
"Honey, ain’t nobody moving. And it’s slow as molasses." (Wes Moss quoting a mortgage professional, [04:54])
-
Dividend reinvestment clarity:
“The easier and frictionless we can make investing, which is already kind of a full time job or a full time sport, usually the better.” (Wes Moss, [15:10])
-
On planning for retirement fears:
“It is a planning solution and it is a clarity versus fuzziness solution. And if you have clarity, you start to sleep better at night.” (Wes Moss, [28:29])
-
When discussing high-yield “too good to be true” products:
"Just because these investments have worked over the last few years doesn't mean they'll always work...Limit your exposure, limit your risk. Just be really careful here." (Wes Moss, [36:33])
Timestamps for Important Segments
- [01:36] – Federal Reserve rate cut impact and mortgage/employment discussion
- [09:34] – Listener Q&A: Small business banking and saving strategy
- [14:16] – Listener Q&A: Dividend reinvestment versus manual allocation
- [16:36] – Listener Q&A: Backdoor Roth contribution logistics
- [22:52] – Segment: The biggest fear in retirement is running out of money
- [30:42] – Listener Q&A: Spousal IRA contributions during retirement
- [32:26] – Listener Q&A: Taking IRA 72T withdrawals and then returning to work
- [34:47] – Listener Q&A: The risks of high-yield, option-based income ETFs
- [37:36] – Outro
Episode Tone
The episode is approachable, practical, and deeply focused on real-world financial decisions. Wes Moss combines technical acumen with relatability, often lightening the tone with friendly banter with Krista and clear, regular-person analogies ("slow as molasses," "banks count on us being lazy"). Advice is always wrapped in encouragement to plan carefully and never chase easy-appearing “hacks.”
Summary for Non-Listeners
This episode informs listeners about the ripple effects of a long-awaited Federal Reserve rate cut—offering cautious optimism for mortgage rates and the stock market—before Wes Moss answers a variety of listener questions, ranging from optimizing small business cash reserves to practicalities of retirement account rules and tackling the universal fear of running out of money in retirement. The guidance emphasizes vigilance with financial institutions, the value of automatic investments, the dangers of seeking shortcuts, and, most fundamentally, the power of clear, ongoing financial planning.