The Clark Howard Podcast – "Ask An Advisor With Wes Moss"

Episode Date: December 23, 2025
Host: Clark Howard (with Wes Moss, Investment Advisor)
Guest Host: Krista Dibiaz

Episode Overview

This episode of The Clark Howard Podcast focuses on real-world financial questions submitted by listeners, with a central theme of navigating healthcare enrollment (especially for early retirees and those under 65), current implications of Federal Reserve rate cuts, and actionable retirement planning. Wes Moss, investment advisor, offers practical, detailed advice, and shares personal stories to illustrate complex topics. As always, the tone is empathetic, conversational, and clear, empowering listeners to make informed decisions.

Key Topics & Insights

1. Navigating Healthcare Enrollment for Early Retirees & the Recently Bereaved

Timestamps: [02:26]–[12:03]

• ACA Enrollment Periods:
  • Current enrollment extends into mid-January for coverage starting the following February.
  • Open enrollment is still available, dispelling the myth that options are limited once the main window expires.
  • Quote:
    "If you're enrolling now through the ACA, it would be for coverage the beginning of Feb. So there's still time." – Wes Moss [01:05]
• Case Study: Early Retiree/Widow ("Rebecca"):
  • Rebecca, a widow in her 40s with two young children, faced COBRA premiums exceeding $2,500/month.
  • Through the ACA exchange, her actual cost reduced to less than $200/month, possibly even free depending on income.
  • The key:
    • ACA subsidies, expanded during COVID, are still significant through 2025 (expected to sunset in 2026).
    • Subsidy calculators like KFF.org (Kaiser Family Foundation) provide personalized estimates.
  • Accurate income reporting is crucial to avoid future payment adjustments with the ACA.
  • Two major resources for navigating ACA and plan selection:
    • kff.org
    • nabip.org – Connects you with licensed benefits consultants for plan comparison and doctor/medication compatibility.
  • Quote:
    "The punchline is she thought she was going to be paying $2,000 or $2,500 a month. The reality is she's going to be paying probably less than $200 a month. It may even be free..." – Wes Moss [03:34]
  • Decision factors include premium, out-of-pocket maximums, coverage of preferred physicians/medications, especially for specialized drugs.
  • Memorable moment: Rebecca’s relief at not needing immediate full-time work due to ACA options [05:54-06:06].
  • Expert tip: If you under- or over-estimate income, the IRS will settle the balance after you file taxes.

2. Retirement Timing and Overcoming Healthcare Cost Anxiety

Timestamps: [12:04]–[15:54]

• Listener "Jeannie": 10-year age gap with spouse, fearful of retiring at 60 due to potential high healthcare costs.
• Advice:
  • A robust written (or visual) financial plan dispels uncertainty; if numbers and assumptions are conservative, early retirement is likely safe.
  • Healthcare "fear" can be mitigated:
    • Early retirees often qualify for significant ACA subsidies by keeping taxable income lower.
    • Psychological transition to retirement is a hurdle; incremental or part-time retirement may help adjust.
  • Quote:
    "If you can do it mathematically and if it works out on paper, then I say go for it." – Wes Moss [14:42]

3. Principal Protected Notes: Cautionary Takeaways

Timestamps: [15:54]–[18:19]

• Listener Question ("Joy"): Should I use principal protected notes in my IRA?
• Wes's Analysis:
  • Principal protected notes are “financial burritos”—complicated bank-backed structures.
  • Risks:
    • No guarantee if the sponsoring bank fails.
    • Usually no dividend payments (important in long-term returns).
    • Illiquidity: Funds are locked up for 5–7 years, making early withdrawals prohibitively expensive.
  • Psychological “lockup” could backfire compared to simply holding a diversified portfolio.
  • Quote:
    "It's almost like one of these notes is psychologically allowing you to lock yourself up—to put yourself in jail—so you don’t touch your investments, when in reality, if you just don’t touch your investments for seven years, it’s hard to lose money." – Wes Moss [17:35]

4. De-Risking and Generational Wealth for "Overfunded" Retirees

Timestamps: [18:19]–[24:10]

• Listener "Rich" in Arkansas:
  • Early retiree; annual spending around $100k, $3.2M net worth (2.7M invested, 66% stocks, 34% bonds), plans for generational giving.
  • Investment balance is prudent; resist the temptation to become too aggressive or conservative based on recent stock market outperformance.
  • 4% withdrawal rule applies solidly here; portfolio’s performance allows for legacy buildup with little risk if the current mix is maintained.
  • Memorable moment: Joyful acknowledgement of Rich’s lifestyle—"Rich plays a hundred rounds of golf a year… they're living the life." – Wes & Krista [20:00-20:14]
  • Quote:
    "You've landed squarely well, just under what I would call the safety zone. That's a great level to be at." – Wes Moss [21:46]

5. Federal Reserve Rate Cuts and the Real Estate Market

Timestamps: [26:52]–[35:12]

• Explaining the Fed:
  • The Fed controls short-term rates (the “fuel line” analogy), but not the 10-year bond yields that drive mortgage rates.
  • Even after recent cuts, mortgage rates remain ~6–6.25%—not expected to fall dramatically unless broader economic signals change.
  • Quote:
    "The Fed only controls that really short-term interest rate, the federal funds rate… Mortgage rates are predicated on the 10-year treasury rate." – Wes Moss [27:55]
  • Rate cuts don’t always trickle into lower mortgage rates; long-term rates reflect complex future expectations, not just Fed actions.
  • Market “Goldilocks” moment (not too hot, not too cold), with jobless claims low, household net worth at records ($160T), and resilient consumer spending.
  • Discussion of "K-shaped" recovery: Wealth disparity remains, but aggregate data drives Fed decisions.
  • Advice: Don’t sit idle waiting for drastically lower mortgage rates—high 5s at best are likely in the medium term.

6. Social Security: Timing and Strategy

Timestamps: [35:12]–[38:32]

• Listener "Doug" in Ohio: Should you take Social Security at 62 and invest, or wait until 70 for higher payments?
• Summary:
  • Waiting until 70 yields ~8% guaranteed increases per year.
  • Taking early comes with substantial reductions and lost compounding.
  • No “perfect answer”—the risk of dying early means lost benefits, but on average, waiting is optimal unless financial strain dictates otherwise.
  • Quote:
    "If you knew your expiration date, you would know exactly when to take Social Security." – Wes Moss [36:01]
  • Summary rule: Take Social Security when you need it, delay if possible for the higher, guaranteed growth.

7. Asset Allocation Across Accounts

Timestamps: [38:32]–[40:13]

• Listener "Steve" in South Carolina: How to keep a 60:40 stocks-to-bonds allocation with multiple accounts (IRA, brokerage)?
• Key point: Always allocate across your full portfolio (“household view”); unequal balances in different account types may require a more aggressive allocation in tax-deferred accounts if other assets are kept liquid.
• Quote:
  "If you have 10 different accounts… you want to look at the allocation of all of those accounts combined to meet what you're comfortable with." – Wes Moss [39:53]

8. International and Early Retirement: "Almost Free Freddie"

Timestamps: [40:13]–[45:34]

• Profile: Retiring at 43, moving to Eastern Europe (dream home, pool, palm trees, low living costs), incomes from VA, pending pension, rental property.
• Analysis:
  • Able to cover living expenses comfortably with very low (<2%) portfolio withdrawal rate before pension starts at 50.
  • Paid-off properties and diversified income streams add stability.
  • Quote:
    "If these numbers are the actual numbers, then your lower cost of living, $5,600 is a low cost of living… you are very close to being free, my friend Freddie." – Wes Moss [44:53]
  • Memorable moment: Guessing the mysterious palm-tree-laden Eastern European country, and affirmation of public service: "Thank you for your service, Freddie, both in the military and then as a police officer, putting your life on the line… That's no small feat." – Krista Dibiaz [42:57]

Notable Quotes

• On ACA Coverage:
  "It's more common than most people might think… Anyone looking for health care under the age of 65." – Wes Moss [02:26]
• On Visual Financial Planning:
  "There's real power in seeing that mathematically, visually." – Wes Moss [13:15]
• On Principal Protected Notes:
  "It's a fairly complicated financial vehicle where a bank… backs it. And Lehman Brothers did a lot of these back in 2005, 6, 7…" – Wes Moss [16:21]
• On Living Retirement Fully:
  "They're living the life. It's great." – Krista Dibiaz [20:14]
• On Fed/Rate Cuts and Consumer Health:
  "The United States consumer… is a lot wealthier today than they were a year ago, three years ago, five years ago." – Wes Moss [30:58]

Resource Links & Tools Mentioned

• Healthcare Cost Calculators: kff.org
• Healthcare Advisors: nabip.org
• The Clark Howard Podcast & Team Clark: clark.com/askclark

Final Takeaways

• ACA subsidies remain robust for most through 2025; early retirees or those with sudden life events like widowhood should always check ACA options before overpaying for COBRA.
• Use accurate income projections to maximize healthcare subsidies and avoid tax surprises.
• Early retirement is feasible with conservative planning, controlled spending, and an understanding of healthcare coverage opportunities.
• Financial products like principal protected notes may not be effective for most; understand the tradeoffs in return, risk, and liquidity.
• Waiting for ideal mortgage rates may only delay opportunities—act based on your life, not headlines.
• Social Security timing is highly individual; generally, waiting increases financial security in old age.
• Asset allocation should always be determined “by the household,” not individual accounts.
• With diversified income streams and low withdrawal rates, even ambitious early retirement plans (including international moves) can be achieved.

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