02.10.26 Ask An Advisor With Wes Moss - The Clark Howard Podcast Recap

Podcast: The Clark Howard Podcast

Published: 2026-02-10

Duration: 40 minutes

Guests: Wes Moss

Summary

Inflation may slow, but past increases keep prices high, prompting wage battles. Growth stocks offer potential gains with low dividends, while value stocks provide stability with higher dividends.

What Happened

Inflation remains a bone of contention as Wes Moss discusses its persistent effects despite current rates dropping to 2.7%. He notes that inflation's cumulative impact means consumers are stuck with higher prices, leading to ongoing wage increase battles, exemplified by companies like UPS. This scenario underscores why investing is crucial to combat inflation's long-term effects.

Wes Moss compares growth and value stocks using a vivid apple analogy. Growth stocks, akin to red apples, promise fast growth but offer low dividends, with companies like Amazon being prime examples. In contrast, value stocks are likened to green apples, characterized by slower growth but higher dividends, appealing to those seeking long-term stability.

The episode delves into investment strategies, advising Mike in California to convert part of his $457,000 into a Roth IRA while staying within the 24% tax bracket. For Lori in California, Wes emphasizes the risks of concentrating wealth in ESOPs, which led to a drastic drop in her shares' value from $280,000 to $76,000.

Larry in Ohio receives guidance that he doesn't need bonds in his portfolio, as his income exceeds his expenses by 10%, and he has substantial cash reserves. Wes also advises Matt in Wisconsin to continue investing $6,000 per month in stock indices, considering his concerns about current market overvaluation.

Buffered accounts are explored as a strategy to mitigate market downturns, offering a cap on losses at 20% and gains at 90% over a six-year period. However, Wes warns of the risks, citing the Lehman Brothers bankruptcy, which left investors with worthless buffered notes.

Dennis, a 62-year-old laid off after 26 years, considers his options with a $65,000 severance package. Wes suggests using the severance to max out Roth IRA contributions and rolls over a lump sum pension into an IRA to minimize tax impacts.

Key Insights

• Inflation's steady decline to 2.7% hasn't brought relief to consumers, as the cumulative impact still leaves us grappling with higher prices. This is why companies like UPS are stuck in wage battles, proving that investing remains a crucial shield against inflation's long game.
• Think of growth stocks as the red apples of the market: fast-growing but low-dividend temptations like Amazon. Value stocks, on the other hand, are the green apples - slower in growth but packed with higher dividends, perfect for those craving long-term stability.
• Watching your shares plummet from $280,000 to $76,000 due to over-relying on ESOPs. That's the reality Lori in California faced, highlighting the risk of putting all your financial eggs in one company basket.
• Buffered accounts promise to cap your losses at 20% while offering gains up to 90% over six years, but remember the Lehman Brothers disaster. Their bankruptcy turned these safe bets into worthless notes, a cautionary tale for those seeking market protection.