The Clark Howard Podcast

Episode: 12.16.25 - Ask An Advisor With Wes Moss

Date: December 16, 2025
Host: Clark Howard (regular host), Guests/Co-Hosts: Wes Moss & Krista Dibiaz

Episode Overview

This special year-end “Ask an Advisor” episode features Krista Dibiaz and financial advisor Wes Moss, tackling listeners’ most pressing financial advice questions as 2025 draws to a close. With major tax law changes on the horizon for 2026, they deep-dive into year-end tax planning, the psychological hurdles of transitioning from saving to spending in retirement, why people use advisors, and how to evaluate whether your advisor is genuinely working in your best interest. The episode is packed with practical advice, memorable stories, and actionable tips for securing financial well-being.

Key Discussion Points & Insights

1. The Psychological Transition: Saver to Spender in Retirement

[01:22–11:35]

• Listener Cliff from Idaho asks: How do advisors help clients feel comfortable drawing down their nest egg in retirement?
• Wes Moss:
  • Describes “the millionaire’s paradox”: Lifelong savers built wealth by being frugal, so spending their accumulated savings feels unnatural.
  • Many retirees view their 401(k) as unfamiliar "lottery-sized" money, leading to anxiety about withdrawals.
  • Retirees fear “what if the money goes away?”—prompting reluctance to enjoy spending.
• Wes’s 3-Step Approach to Overcoming This Hurdle:
  1. Written Financial Plan: “The psychology of money is so important… Build some sort of written plan that has the inputs that over time should be relatively conservative.” (06:53)
  2. Understand Safe Withdrawal Rules: Knowing and applying the 4% (now up to 4.7%) withdrawal rule gives “a permission slip to help you get over the worry.”
  3. Balanced, Diversified Portfolio: “Build a real fortress” so that market fluctuations are less emotionally jarring.
  • Key mindset: This is not lottery money. It was earned, not luck; you deserve to spend it guilt-free.
  • Memorable Quote:

    “You earned it and you deserve to be able to spend it. That I think can help folks have the permission to freely spend what you need…” — Wes Moss [10:54]

2. Why Do Advisors Work If They’re So Smart?

[11:35–17:45]

• Listener Matt from Colorado: “If advisors give great advice and understand the market, why do they work instead of just retiring rich themselves?”
• Wes Moss:
  • Wealth and financial planning get more complex as net worth increases—“the wealthier people are… the more you need help managing all the complexity.”
  • Advisors aren’t “market whisperers” creating instant wealth; few beat the market consistently.
  • The main value is helping clients avoid big mistakes (e.g., emotional decisions, tax missteps, lack of estate planning).
  • Many clients want to outsource the details: “Most people could easily do your own taxes… But people do hire CPAs because of the complexity… Most [clients] don’t want to be in the weeds.”
  • For some, financial advising is deeply meaningful work, regardless of personal wealth.
  • Memorable Quote:

    “Advisors are there to help you avoid big mistakes… manage your taxes, stay invested through volatility… Avoid emotional decisions…” — Wes Moss [14:47]

  • Fun note: Reference to the “Mappiness Project,” ranking activities by enjoyment. Standing in line is almost as disliked as work, emphasizing Matt’s frustration writing from an airport queue!

3. How to Evaluate If Your Advisor Has Your Best Interests at Heart

[17:45–20:33]

• Listener Alex from Oregon: How do you know if your advisor truly looks out for you (not just portfolio performance)?
• Wes Moss:
  • Priority #1: Find a fiduciary advisor—required to put your interests first, charged on a fee rather than commission structure.
  • Essential: The advisor should understand you deeply—not just your portfolio, but your goals, values, and circumstances.
  • “You should feel listened to… If your advisor is understanding you and they’re fiduciary, that goes a long way.”
  • If advisors promise unrealistic returns (e.g., 12% monthly!), run away.
  • Krista’s Anecdote: Her dentist described feeling “dirty” after sessions with a pushy, sales-driven bank advisor—underscoring the value of fiduciaries and genuine care for clients.

4. Year-End & 2026 Tax Planning: What’s Changing and How to Prepare

[22:47–31:40]

• Wes’s Caveat: “Always double-check with your CPA or CFP—tax planning is never one-size-fits-all. Everyone’s situation has a unique fingerprint.” [22:59]
• Six Big Tax Changes & Action Tips for 2026:
  1. Higher SALT Deduction:
     • State & local tax (SALT) deduction jumps from $10,000 to $40,000 (with income phase-outs above $500k household).
     • Action: Max your 401k/defer income if close to phase-out.
  2. Charitable Deduction Rule Changes:
     • New 0.5% AGI “floor” and 35% cap on value of deduction; larger donors ($50k+) see nearly $2,000 less in tax benefits in 2026.
     • Action: Consider giving in 2025 for stronger deduction.
  3. HSA Expansion with ACA Plan:
     • HSA eligibility expands for ACA bronze/catastrophic plans and some subscription-style primary care, potentially affecting millions.
     • 2026 limits: $4,400 (single), $8,750 (family), +$1k catch-up.
     • Action: Review eligible plans; maximize HSA contributions.
  4. Clean Energy Credit Expiration:
     • $3,200 credit for energy upgrades (windows/heat pumps) expires Dec 31, 2025.
     • Action: Must install qualifying upgrades by year-end for credit.
  5. Return of 100% Bonus Depreciation:
     • For business owners and real estate: Deduct full cost of qualifying assets (e.g., a $30,000 work truck) in the year purchased, not over several years.
  6. 529 Plan Flexibility:
     • Pre-college expenses eligible (materials, tutoring, tests) up to $20,000 in 2026 (vs. $10k in 2025).
     • 529s are becoming “like a Swiss Army knife” of education savings.
• Summary:

  “Check 2025 income, accelerate charitable giving, review HSA insurance, and hurry on energy upgrades before Dec 31.” — Wes Moss [31:23]

5. Listener Q&A: Accounts for Grandchildren, IRA Consolidation

[31:40–37:30]

A. Best Way to Gift a Grandchild (Non-529)

• Listener Massimo from NJ: Wants to give $1,000/yr (not via 529) to a grandchild.
• Wes Moss:
  • #1: Custodial Roth IRA is ideal, but baby must have earned income (baby modeling, for example).
  • #2: Joint accounts not preferred—child could gain access too early.
  • #3: UTMA/UGMA Account—Best option. Grows under grandparent control, converts to child at 18 or 21 depending on state. Also a great platform for teaching financial literacy as child grows.
  • Memorable Moment:

    “If the baby is really good looking, maybe they can do baby modeling!” — Krista Dibiaz [32:59]

B. Should I Consolidate My Retirement Accounts?

• Listener Kevin from Georgia: Retiring soon, should he consolidate assets from 401(a) TIAA CREF and Roths into one custodian (Fidelity/Vanguard) for low-cost advice?
• Wes Moss:
  • 401(a) is common for government employees; similar to a 401(k).
  • CREF side: Easy to roll over to an IRA if in mutual funds.
  • TIAA side: Trickier if in traditional annuity accounts—may have to stagger withdrawals over years.
  • Recommendation: Consolidation is positive for clarity and control; one custodian is simpler and not detrimental to diversification.
  • Memorable Quote:

    “You’re not getting diversification by having four different firms with four different IRAs. That’s a misnomer.” — Wes Moss [36:51]

Notable Quotes & Memorable Moments

• Wes Moss [10:54]:
  “You earned it and you deserve to be able to spend it.”
• Wes Moss [14:47]:
  “Advisors are there to help avoid big mistakes... build sustainable long term plans, manage your taxes, stay invested through volatility, avoid emotional decisions...”
• Wes Moss [31:23]:
  “Check 2025 income, accelerate charitable giving, review HSA insurance, and hurry on energy upgrades before Dec 31.”
• Krista Dibiaz [32:59]:
  “If the baby is really good looking, maybe they can do baby modeling!”

Timestamps for Important Segments

| Segment/Topic | Timestamp (MM:SS) | |-----------------------------------------|---------------------------| | Saver-to-Spender Mindset in Retirement | 01:22–11:35 | | Why Do Advisors Need to Work? | 11:35–17:45 | | Is Your Advisor Working for You? | 17:45–20:33 | | Upcoming Tax Changes & Planning | 22:47–31:40 | | Setting up Accounts for Grandchildren | 31:40–34:41 | | Should I Consolidate Retirement Accounts?| 34:41–37:30 |

Conclusion

This robust, listener-driven episode of "Ask an Advisor" blends the practical with the psychological, giving listeners actionable steps for closing out 2025 financially strong and preparing for major changes in 2026. Wes and Krista offer clear advice on the challenges of spending in retirement, working with financial advisors, maximizing year-end tax moves, and setting up future generations for success—all with a warm, encouraging, and conversational tone that empowers listeners to take the next step toward financial security.