The Clark Howard Podcast

Episode: 11.18.25 – Ask An Advisor With Wes Moss
Date: November 18, 2025
Host: Clark Howard
Guest: Wes Moss

Episode Overview

In this week’s “Ask an Advisor,” Clark Howard and financial advisor Wes Moss dive into the complexities of helping adult children financially (beyond just monetary inheritance), the evolving job market shaped by AI (and why it might create more jobs than it eliminates), and tackle a series of listener questions covering retirement withdrawals, backdoor Roth IRAs, early retirement tax strategy, and more. Throughout, the episode maintains a practical, empathetic, and slightly playful tone, emphasizing self-sufficiency, prudence, and optimism about the future.

Main Themes and Discussion Points

1. The Non-Monetary Inheritance: The Chuck and Susan Story

[00:38–08:19]

• Real-life scenario: Wes introduces “Chuck and Susan” (names changed)—a retired couple contemplating whether to help pay off their adult son and his wife’s six-figure student debt.
• Dilemma: Susan feels guilty enjoying a comfortable retirement (complete with a vacation home) while her son struggles under the weight of debt she partially encouraged by guiding him toward an expensive college.
• Financial Planning Principle: Wes analyzes their withdrawal rate (already slightly higher than ideal), cautioning against tapping further into assets or selling the beloved mountain house for this purpose.
  • Key quote:

    "There’s a difference between having peace of mind, knowing your plan is working... and the worry of running out of money."
    — Wes Moss [05:32]

• Reframing the Gift: Wes flips the script—reminding Susan that maintaining their own financial independence is a gift to their children, sparing them the burden of supporting aging parents.
  • Key quote:

    “You are giving them a gift by not being a financial burden to your kids.... Financial independence is generational generosity.”
    — Wes Moss [07:04]

• Takeaways:
  • Prioritize your own retirement financial security before helping adult children.
  • It’s “okay to say no” to requests, especially if your plan is tight.
  • Parents helping kids is common, but not becoming a future burden is a powerful silent form of inheritance.

2. Listener Q&A: Retirement and Investment Queries

[08:19–14:39]

Withdrawals from Target Date Funds

• Phyllis from Alabama: Can you instruct Fidelity to withdraw only from the bond portion of a target date fund (TDF)?
  • Wes’s reply: No; TDFs rebalance your allocation automatically, and withdrawals are proportional to the fund’s composition. Their “simplicity is strength,” but you lose granular control.
    • Quote:

      “You can't choose bonds. You can't ask them to do that... withdrawals come out proportionally.”
      — Wes Moss [09:16]

Backdoor Roth IRA—Is It Going Away?

• Richard from Nevada: Is the backdoor Roth IRA dead after the 2025 tax bill?
  • Wes: No, despite confusion from earlier proposals (Build Back Better), the 2025 legislation didn’t kill the backdoor Roth.
    • Quote:

      “The backdoor Roth lives on.”
      — Wes Moss [12:19]

Updating Retirement Plans After Big Market Gains

• Brian from California: If your retirement accounts have grown 30% since engaging an advisor, how often should you update your plan?
  • Wes: At least once a year or any time your needs or spending plan materially changes. Stay proactive, especially if considering increasing your spending due to investment gains.

3. AI and The Future of Jobs: Opportunity Not Just Threat

[17:22–29:00]

• Headlines vs. Reality: Recent mass tech layoffs (UPS, Amazon, Microsoft) fuel fears, but deeper research paints a more nuanced picture.
• World Economic Forum Data:
  • By 2030:
    • 85–92 million jobs displaced globally
    • BUT 170 million jobs created—a net gain of 85 million, or a 7% increase in employment.
      • Quotes:

        “The pie’s going to get bigger... the composition of that pie is going to change.”
        — Wes Moss [20:07]

• Nature of Change:
  • 22% of global jobs will “change in some way” (not disappear).
  • Sectors with persistent demand (housing, food, transport, insurance, healthcare, entertainment) will remain, but tasks and skills will evolve.
• Examples of AI-Driven Job Creation:
  • Hydroponic and vertical farm technicians
  • Agricultural drone operators
  • Delivery/logistics roles adapting to new technologies
  • Smart home and EV fleet technicians
  • AI-powered estate planning liaisons and platforms in financial services
    • Detailed example: AI-driven estate planning platforms now create new liaison and legal support jobs, closing a key gap between financial advisors and estate attorneys.
    • Quote:

      “It’s an entirely new industry.... That’s an example of, I think, thousands and thousands of jobs being created.”
      — Wes Moss [28:39]

• Bottom Line:
  • Demand for goods and services isn’t vanishing—roles and required skills will adapt.
  • AI’s creative destruction is real, but so is creative expansion—be ready to partner with technology.

4. Further Listener Questions

[29:06–39:00]

FIRE Movement & Tax Planning: Roth or Traditional?

• Emma from Illinois: Confused by conflicting FIRE (Financial Independence Retire Early) advice on Roth vs. Traditional accounts.
  • Wes: If you’re in the top two tax brackets (above $250K single/$500K joint), Traditional is generally better; otherwise, Roth likely wins.
  • Quote:

    “If you’re in the top two tax brackets, to me, you don’t want to do a Roth; anything lower than that, you want to do a Traditional.”
    — Wes Moss [30:35]

Large Lump Sum & Taxes (Kids Camp Settlement)

• Charlie from Texas: After decades of unpaid work at a Christian camp, a possible large lump sum of back pay may be coming—how to handle taxes?
  • Wes: Typically taxed as ordinary income in year received. Possible to seek a structured settlement for payout over years—needs negotiation with payor/insurer.

Apples—for Fun!

• MJ from West Virginia: Debates buying Wes's favorite Snapdragon apples or going with frugal Gala apples.
  • Wes: Snapdragon is “the juiciest, crispiest apple if you get a good one,” but there's love for budget-friendly Gala and the “crisp pink/pink lady” hybrid, too. [34:55]

Retirement Planning: Income Streams vs. Lump Sum

• Dan from California: Should guaranteed income (like a fixed $79K/yr for 10 years) be “added” to savings when tallying retirement security?
  • Wes: The purpose of savings is to create income, so guaranteed income is already in its final (needed) form. If you were to capitalize it at a 5% withdrawal rate, it’s worth $1.6M—and with $500K in savings, you’re well-positioned for retirement.

Notable Quotes & Timestamps

• “There are no scholarships for retirement. There are no student loans for retirement. So you have to fund your... [own needs].”
  — Clark Howard [08:19]
• “Financial independence is generational generosity.”
  — Wes Moss [07:04]
• “The backdoor Roth lives on.”
  — Wes Moss [12:19]
• “The pie’s going to get bigger... the composition of that pie is going to change.”
  — Wes Moss [20:07]
• “It’s easy to figure out what jobs are going away... But what are the new jobs going to be?”
  — Wes Moss [18:37]
• “The Snapdragon [apple] is a really interesting apple. It is the juiciest, crispiest apple if you get a good one.”
  — Wes Moss [34:55]
• “We go from apples to math.”
  — Clark Howard [38:49]

Key Takeaways

• Support your own financial plan first—assisting adult children should not undermine your retirement security.
• Target Date Funds simplify withdrawals but limit control. Accept their strengths and weaknesses.
• Despite scary headlines, AI is projected to create more jobs than it eliminates. Tech changes the type of work, not just its quantity.
• Stay up to date on financial regulations—especially backdoor Roth rules and new tax laws.
• Tax strategy should be tailored to your current and expected future tax brackets.
• Lifestyle and retirement planning is personal—income streams and savings are both ways to achieve the peace of mind needed in retirement.

To Listen/Watch/Ask Questions

• Catch "Ask an Advisor" with Wes Moss every Tuesday.
• Submit your own questions at clark.com/askclark.