The Clark Howard Podcast

Episode: 12.02.25 – Ask An Advisor With Wes Moss

Date: December 2, 2025
Host: Clark Howard (with Wes Moss & Krista Dibias)

Overview

In this "Ask An Advisor" edition, special guest Wes Moss joins Team Clark’s Krista Dibias for a deep-dive Q&A session on hot-button personal finance topics. The conversation spans the controversy and nuances of the 50-year mortgage, investment diversification strategies, Social Security optimization, credit card rewards, maximizing retirement savings, and special retirement plan features for high earners. Real listener questions anchor each segment, grounding expert advice in practical realities. The tone is lively, honest, and anchored in Clark’s signature mission: empowering listeners to save more, spend less, and live financially free.

Key Discussion Points & Insights

1. The 50-Year Mortgage: Gimmick or Opportunity?

Timestamps: [02:03]–[10:14]

• Context: The “50-year mortgage” is stirring controversy, with financial experts and media outlets divided.
• Wes Moss: Argues it’s largely a “gimmick” (02:18) since payment savings are modest, but acknowledges one potential benefit: “If a 50-year mortgage allows … one extra person to be able to start their home equity journey earlier, then that's the one thing I can say … could be helpful” (06:32).
• Krista Dibias: Strongly warns about risks: “If you suddenly have to move … in two years or five years, you've paid down so much less in principal ... you could get stuck” (07:19).
• Numbers in Context:
  • Median U.S. home: $415k
  • 30-year fixed: ~$2,500/mo
  • 50-year: ~$2,300/mo (saves ~$150–$200/mo, [07:47])
  • Principal paid after 5 years: $27k (30-year) vs. $11k (50-year) ([08:51])
• Key Takeaway: Little payment relief, much slower principal build—suitable only in rising markets for marginal buyers, but can easily become a trap if you need to sell or if the market stalls.

Notable Quote:

"It really doesn't save that much money at all ... but if a 50-year mortgage allows … one extra person to be able to start their home equity journey earlier, then … it could be helpful."
—Wes Moss ([06:15])

2. Investment Diversification & Equal-Weight Strategies

Timestamps: [10:14]–[13:55]

Listener Q (Brandon, TN): Asks how to avoid tech concentration in index funds.

• Wes: Outlines difference between market-cap and equal-weighted funds (“Top 10 companies ... really taking up about 40% of the influence” [10:53]).
• Solution: Points to equal-weight ETFs as a way to achieve diversification (e.g., RSP for the S&P 500). Also notes sector and industry-specific ETFs for further balance.
• Practical Tip: Equal sector-weighted ETFs can reduce overexposure to tech-heavy indices.

Notable Quote:

“If you’re in the majority of assets in traditional market cap weighted indices ... the worry is that the biggest companies ... are really trading well because of the same theme. It's tech and it's AI tech.”
—Wes Moss ([11:04])

3. Social Security: Take Early and Invest, or Wait?

Timestamps: [13:55]–[16:22]

Listener Q (Jamie, NV): Should I take Social Security at 62 and invest, or wait until 70?

• Wes: Explains if you don't need Social Security for living expenses, taking it early for investment offers a near break-even over ~11 years.
• Considerations:
  • Non-wage income (e.g., pensions, gains) doesn’t penalize Social Security payments.
  • Taking earlier can help build after-tax reserves, giving flexibility in the future.
• Rule of Thumb: Measurement is the “11-year break-even”—if you live to late 70s, waiting generally pays off; but flexibility and liquidity may matter more for some.

4. Credit Card & Platform Incentives: Robinhood Example

Timestamps: [16:22]–[19:43]

Listener Q (Jay, FL): Cites Robinhood Gold and associated credit card incentives.

• Wes: Crunches numbers—$50 annual fee brings ~$160 net gain from IRA deposit bonus, 3% cashback potentially earns $1,000/yr if spending $30k ([17:53]).
• Team’s Reminder: “You have to be someone who pays your balances off in full every month” ([17:19]).
• Note: Cautions against using platform for incentives alone; make sure it fits your investment needs and habits.

Memorable Moment:

“This reminds me of the toasters of the 50s ... Except it’s a pretty nice toaster.”
—Wes Moss ([18:22])

5. The Key to a Winning 401(k): The Power of Starting Young

Timestamps: [22:06]–[27:17]

• Krista’s Segue: Sets up the segment with a “winning” reference, playfully inspired by Charlie Sheen (Netflix doc chatter, [22:14]–[23:19]).
• Wes’s Example: Two hypothetical savers, Laura (starts at 25, saves 13%) vs. RJ (starts at 30, saves 9%). Laura ends up with >$3 million; RJ, despite higher returns, finishes with ~$2 million ([24:28]–[27:17]).
• Moral: “Those little variables … may not seem like a big deal, but they are.” Early and higher savings trump trying to “make up” for lost time with higher returns later.

Notable Quote:

“Five years late doesn't sound like a lot, but it really adds up. Even in this case, RJ’s rate of return was better. Laura still ended up with over a million dollars more.”
—Wes Moss ([26:30])

6. 1099 vs. W-2 for High Earners: More Money, More Hassle?

Timestamps: [27:17]–[31:49]

Listener Q (David, OK): As a CRNA, is it worth moving to 1099 work for more pay and contribution limits?

• Wes: Lays out employer-offered benefits: employer retirement contributions, health/dental insurance, paid time off, lower liability.
• Self-Employment Perks: Larger savings potential via Solo 401(k) ($70k vs. $50k/yr), but must forego $27k “free money” from employer contribution, plus benefits.
• Risks: Self-employment brings admin hassles, liability, and tax complications. Wes leans toward sticking with current W-2 setup in a high-risk field.

Notable Insight:

“You are just opening yourself up to more complication, more liability ... it is definitely more money and there's a little bit more savings. But I somewhat think it's not worth the jump in a pretty high risk field.”
—Wes Moss ([30:31])

7. Losing Mega Backdoor Roth: What Next?

Timestamps: [31:49]–[34:46]

Listener Q (Juan, CA): Lost access to Mega Backdoor Roth; what are my (tax-advantaged) options?

• Wes: Recommends double-checking if new 401(k) allows after-tax contributions and in-service withdrawals to possibly “DIY” a mega backdoor Roth ([33:18]).
• If not, suggests using low-cost, tax-efficient ETFs in a taxable account (“almost as good, but not quite”).
• Tradeoff: After-tax accounts lack tax-free growth of Roths, but offer flexibility and high tax efficiency if managed well.

8. Restoration Plans & Non-Qualified Deferred Compensation

Timestamps: [34:46]–[39:33]

Listener Q (Ben, GA): Pros/cons of a restoration plan for highly compensated employees.

• Wes: Restoration plans let you defer more salary for tax-deferred growth. Downsides: no ERISA protection, subject to employer solvency, less liquidity/rollover flexibility.
• Withdrawal Planning: Main issue is choosing payout period (5, 10, or 15 years). Shorter terms mean bigger tax hits but more liquidity; longer terms spread the tax cost.
• Pro Tip: Coordinate with Social Security and retirement income needs when choosing a payout option.

Notable Quote:

“…There’s not a lot of drawbacks. One drawback is ... it doesn’t have ERISA protection. … But historically I’ve seen companies that use these restoration type plans usually do a pretty good job at how much they’re giving you … so all of that good outweighs the negatives.”
—Wes Moss ([36:28])

Notable Quotes & Memorable Moments

| Timestamp | Quote | Speaker | |-----------|-------|---------| | 06:32 | "If a 50-year mortgage allows … one extra person to be able to start their home equity journey earlier, then that's the one thing I can say … could be helpful." | Wes Moss | | 07:19 | "If you suddenly have to move … in two years or five years, you've paid down so much less in principal ... you could get stuck." | Krista Dibias | | 18:22 | "This reminds me of the toasters of the 50s ... Except it’s a pretty nice toaster." | Wes Moss | | 26:30 | "Five years late doesn't sound like a lot, but it really adds up. Even in this case, RJ’s rate of return was better. Laura still ended up with over a million dollars more." | Wes Moss | | 30:31 | “…it is definitely more money and there's a little bit more savings. But I somewhat think it's not worth the jump in a pretty high risk field.” | Wes Moss | | 36:28 | "...all of that good outweighs the negatives or any sort of drawback." | Wes Moss |

Takeaways for Listeners

• Homebuying: Don’t be seduced by lower payments on ultra-long mortgages; the trade-offs in principal build are profound.
• Investing: Diversification isn’t just about owning “enough” stocks—it’s about how your portfolio is weighted.
• Retirement: The earlier you start, the less return-chasing you need. Small differences now create big results later.
• Platform Perks: Rewards are only a win if you pay in full and actually like the platform.
• Career Moves: Balance take-home pay and DIY savings potential against the hidden costs and risks of self-employment.
• Advanced Plans: Restoration/non-qualified deferred comp plans are valuable but come with unique risks—align withdrawal strategy with your total retirement plan.

Listener Participation

To submit a question or join the conversation, visit www.clark.com/ask