02.17.26 Ask An Advisor With Wes Moss - The Clark Howard Podcast Recap
Podcast: The Clark Howard Podcast
Published: 2026-02-17
Duration: 36 minutes
Guests: Wes Moss
Summary
Wes Moss provides insights on whether entrepreneurs should tap into their retirement funds to save their businesses amidst cash flow issues and how to interpret the latest job market data for investment strategies.
What Happened
Many entrepreneurs are experiencing cash flow problems due to rapid technological changes and client payment delays. Wes Moss examines the pros and cons of using retirement accounts like brokerage and Roth IRA accounts to manage these financial hiccups. He explains that Roth IRA contributions can be withdrawn tax-free and penalty-free, offering a potential lifeline for business owners in need of quick cash flow solutions.
The episode also delves into the 2026 U.S. job market, providing a more optimistic outlook than previous predictions from 2025. Despite initial concerns, the January 2026 jobs report shows resilience, with a 4.3% unemployment rate and a 3.7% rise in wages year over year. These figures suggest a strong economy, which could influence stable interest rates maintained by the Federal Reserve.
Wes Moss discusses the importance of understanding total return, including dividends, which is often not accurately shown by brokerage firms. This can lead to misleading perceptions of investment performance, especially when firms show a 0% return on bonds after 10 years, ignoring the income generated.
Listeners are reminded about the concept of 'reversion to the mean,' a principle suggesting that small cap stocks, which have recently underperformed, may catch up. This concept is crucial for investors looking to maintain a balanced portfolio and anticipate market corrections.
The episode also touches on the necessity of long-term care insurance, especially for those with substantial retirement assets. While Washington State's mandatory long-term care fund offers limited benefits, the need for such insurance may be less pressing for those with significant savings.
Wes Moss answers listener questions in the #AskWes segment, providing practical advice on various financial topics, including the efficiency of money placement in high-yield savings accounts. He stresses the importance of not letting money remain idle in low-interest accounts.
Listeners are encouraged to explore more about asset class returns, reversion to the mean, and credit freezing strategies through the resources mentioned in the episode. Wes Moss's insights aim to empower listeners with knowledge to make informed financial decisions.
Key Insights
- Roth IRA contributions can be a financial lifeline for entrepreneurs facing cash flow issues, as they can be withdrawn tax-free and penalty-free, unlike other retirement funds that typically incur penalties.
- Despite concerns, the January 2026 U.S. jobs report shows a resilient economy with a 4.3% unemployment rate and a 3.7% rise in wages, suggesting the Federal Reserve may maintain stable interest rates.
- Brokerage firms often mislead investors by not accurately showing total return, including dividends, which can result in a perceived 0% return on bonds after 10 years, overlooking the income generated.
- Small cap stocks, which have recently underperformed, may experience 'reversion to the mean,' a critical concept for investors aiming to maintain a balanced portfolio and anticipate market corrections.
Key Questions Answered
How can Roth IRA withdrawals help entrepreneurs?
Roth IRA contributions can be withdrawn tax-free and penalty-free, providing a temporary solution for entrepreneurs facing cash flow problems. There is a 60-day rollover window to return the funds without penalties.
What does the 2026 jobs report indicate for investors?
The 2026 jobs report shows a 4.3% unemployment rate and a 3.7% wage increase, indicating a resilient economy. This suggests stable interest rates, which can influence investment decisions.
Why is understanding total return important for investors?
Total return includes both growth and income, which is often not shown by brokerage firms. This can lead to a misunderstanding of investment performance, particularly with bonds.