The Clark Howard Podcast

Episode: 09.30.25 – Ask An Advisor With Wes Moss

Release Date: September 30, 2025

Host: Wes Moss (Guest Advisor), Krista DiBias

Episode Overview

This episode of “Ask An Advisor” features certified financial planner Wes Moss, with Krista DiBias as co-host. The focus is on both the emotional and practical aspects of personal finance. The episode begins with a cautionary tale about the importance of clear financial communication within couples, especially in the face of unexpected loss. Wes also introduces a new, somewhat controversial “rule of thumb” on spending for financially comfortable listeners. The hosts answer listener questions about financial planning, retirement accounts, investment vehicles for minors, and emerging strategies for maximizing income and minimizing taxes. Throughout, the tone is empathetic and practical, with plenty of real-world examples.

Key Discussion Points & Insights

1. The Importance of Financial Conversations with Loved Ones

Segment: [02:06]–[11:10]

• Wes shares an urgent story about helping a friend’s mother who was suddenly widowed and overwhelmed by financial uncertainty.
  • She discovered she’d lost her husband’s Social Security income and was unsure about pensions, mortgage balance, and available assets.
  • The lack of prior financial conversation created weeks of anxiety and confusion.
  • Wes guided her through considering retirement account withdrawals as an income stream, illustrating the profound relief a simple conversation can provide.
• Insight: Couples should have a clear, periodic “big picture” talk about where their money is, what comes in, what would happen if one partner passed away, and where to access account information and passwords.
  • “A 30-minute conversation can make that really difficult time a little less difficult.” — Wes Moss [09:25]
• Krista recommends creating a shared Google Doc or binder with essential documents and updates, emphasizing organization and safety.

2. Listener Questions — Expert Responses

a. Retirement Account Protection & Investment Choices

Segment: [11:10]–[13:35]

• Kim from Massachusetts asks about TSP (Thrift Savings Plan) protections past RMDs (Required Minimum Distributions) and post-retirement options.
  • Wes clarifies that RMDs don’t remove creditor protection from the bulk of TSP; only withdrawn cash loses that shield.
  • He confirms plenty of post-retirement life cycle or target-date mutual fund options exist, but points out protection is based on the type of account, not the type of fund.

b. UTMA vs. Other Investment Accounts for Minors

Segment: [13:35]–[16:19]

• Jason from Michigan asks if a UTMA is the best place for kids’ money.
  • Pros: Good vehicle, allows investment, low limitation unless gifting above $19K/year.
  • Watch-outs: At 21 (MI), kids get full control; could impact college financial aid (FAFSA); income above a threshold is taxed at parents’ (kiddie tax) rate; irrevocable.
  • UGMA and UTMA are nearly the same, differences are mainly state-based. Other options: 529s, brokerage in parent’s name, or Roth IRA if child has earned income.

c. Do I Need a Financial Advisor?

Segment: [16:19]–[20:40]

• Maria from Delaware, a diligent single saver with $1.2M, pension, paid house, and no debt, asks whether she’s missing out by not having an advisor.
  • Wes calls this “the best FOMO ever” and discusses why people tend to seek advisory help as their finances get more complicated with age.
  • Not everyone “needs” an advisor, but it can offer peace of mind, especially for those with substantial assets or complex situations. He encourages trying out advisory services like Vanguard’s Personal Advisor Select if curious, noting there’s “very little downside.”
  • “The person that’s the financial advisor is supposed to really dampen and take away a lot of that anxiety.” – Wes Moss [18:28]

New Rule of Thumb: The 0.01% Rule

Segment: [23:35]–[28:45]

• Wes introduces Nick Maggiulli’s “0.01% Rule” for spending, inspired by a Jay Z quote (“What’s $50,000 to someone like me?”).
  • Formula: Take 0.01% of your net worth. Purchases under this threshold should be considered “not worth sweating over.”
    • Example:
      • $500K net worth → $50 threshold
      • $1M net worth → $100
      • $10M net worth → $1,000
  • The number represents your daily expected growth (assuming a 4% annualized return divided by 365), and the rule is an antidote for over-scrutinizing small purchases, especially for frugal “Clark Smart” listeners now in a comfortable financial position.
  • Context: “Are you really going to spend three hours trying to get a refund that is $150 and it’s going to take you three hours?” – Wes Moss [28:27]
• Krista jokes many listeners might still agonize over every dollar, but the principle is to value your time and mental energy once basics are secure.

More Listener Questions (With Notable Insights)

Adjusting the 4% Retirement Withdrawal Rule if Your Home is Paid Off

Segment: [28:45]–[31:25]

• Amy from Arkansas wonders about increasing her withdrawal rate to 5% as her house is paid off.
  • Wes says having a paid-off home gives more flexibility; historically, a 5% rate still works 84% of the time over 30 years (with a 70/30 equity/bond split). He leans “4%-plus” as a happy retiree formula, but paid-off housing offers “insurance” against outliving assets.
  • “Paid off house and 4%-plus rule, both together at the same time.” — Wes Moss [31:23]

“Buy, Borrow, Die” Tax Strategy

Segment: [31:25]–[35:23]

• Alex from Georgia is using a “buy, borrow, die” strategy to supplement income via low-leverage loans against assets instead of selling and triggering capital gains, leaving assets to heirs for a step-up in tax basis.
  • Wes affirms it’s a smart, tax-efficient strategy as long as leverage is kept low and assets are diversified enough to handle market downturns.
  • “The reason you’re looking at it as an actual strategy is that you’re being intentional about it… That can make a lot of sense.” – Wes Moss [32:27]

TSP vs. Vanguard for Roth Conversions

Segment: [35:23]–[38:24]

• Greg from Florida asks if there’s any reason to leave TSP for Roth conversions, given both TSP and Vanguard have low fees.
  • Wes explains TSP index funds are excellent, low-cost, and cover global basics. Only real reason to move is for more fund choices or advanced strategies at Vanguard; otherwise, staying with TSP is totally sensible.
  • “Having the five broad indices that cover most of the world, that’s a really good place to start.” — Wes Moss [38:04]

Notable Quotes & Memorable Moments

• On financial conversations:
  • “If something happened to you today on your walk, how hard would it be for your spouse, from a financial standpoint?...A 30-minute conversation can make that really difficult time a little less difficult.” — Wes Moss [09:25]
• On financial planning vs. anxiety:
  • “Half of America doesn’t have a written plan. 64% of Americans worry more about running out of money than death itself.” — Wes Moss [09:57]
• On the 0.01% Rule:
  • “It’s an interesting way to think about spending in any given situation… Don’t sweat that. Your time is more valuable.” — Wes Moss [28:32]
• On buy, borrow, die:
  • “You’re just using the natural rules of the tax code in life and I don’t think it’s crazy. Just watch your leverage amount.” — Wes Moss [34:34]

Timestamps for Key Segments

| Time | Topic/Question | |-----------|--------------------------------------------------------------| | 02:06 | Financial crisis after death; importance of pre-planning | | 11:10 | TSP protections after RMDs; retirement account options | | 13:35 | UTMA vs. UGMA and other accounts for kids’ investments | | 16:19 | “Do I need a financial advisor?” FOMO and financial guidance | | 23:35 | Introduction of the 0.01% Rule for spending | | 28:45 | Paid-off house and the 4% (or 5%) withdrawal rule | | 31:25 | Buy, borrow, die tax strategy explained | | 35:23 | TSP vs. Vanguard for Roth conversions |

Overall Tone & Style

Engaging, approachable, and practical, the hosts mix warmth with authority, making complex financial advice actionable. Wes’s personal examples and Krista’s listener advocacy ensure the tone stays relatable, occasionally lighthearted, but always on-mission: empowering listeners to be “Clark Smart.”

Summary Takeaways

• Talk openly with loved ones about financial arrangements before emergencies.
• Simple organization—lists, shared documents—can prevent tremendous stress.
• Financial rules of thumb (like the 0.01% or 4% rules) are tools, not straightjackets; adapt to your situation.
• It’s okay to transition into enjoying your money once you’re secure; don’t agonize over tiny sums.
• Major decisions (advisors, account types, leveraging assets) should fit your specific goals, risk tolerance, and stage of life.

To submit questions or subscribe to the newsletter, visit clark.com/askclark.