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

Podcast: The Clark Howard Podcast

Published: 2025-12-23

Duration: 45 minutes

Guests: Wes Moss

Summary

Wes Moss reveals a healthcare secret for early retirees that drastically cuts costs before age 65. He also discusses recent Federal Reserve rate cuts and their implications on mortgage rates.

What Happened

Wes Moss discusses a little-known healthcare secret that could significantly reduce costs for early retirees and others under 65. He shares the story of Rebecca, who thought she would have to pay up to $2,500 a month for COBRA but found that ACA subsidies reduced her premium to under $200. Moss emphasizes the importance of understanding ACA subsidies, which can provide significant savings based on income levels and are calculated using tools like the Kaiser Family Foundation's online calculator.

Moss delves into the broader economic implications of recent Federal Reserve rate decisions. He explains that while the Fed has cut interest rates, mortgage rates are unlikely to drop to 5% soon due to other economic factors. Despite the Fed's actions, current mortgage rates remain in the lower 6% range, which is still an improvement from the previous 7%.

The episode touches on the K-shaped economy, where some Americans are prospering while others struggle with higher costs. Moss highlights that the average American family is wealthier now than in previous years, yet this wealth is unevenly distributed, creating disparities in economic experiences.

Moss outlines the benefits of delaying Social Security until age 70, which offers nearly an 8% annual increase. He advises listeners to consider their individual circumstances and life expectancy when planning Social Security withdrawals, as delaying can result in significantly higher benefits.

The episode also covers the story of Rich from Arkansas, who retired at 48 with a substantial net worth and a well-diversified investment portfolio. Moss uses this example to illustrate effective financial planning and the importance of maintaining a balanced asset allocation.

Freddie's story is also shared, proposing early retirement funded by rental income and VA benefits. His plan underscores the importance of having a diverse income stream and the potential of living abroad to reduce living expenses.

Lastly, principal protected notes are explained as complex financial products that offer market participation with downside protection. However, Moss warns about their risks, including illiquidity and the absence of dividends, making them unsuitable for all investors.

Key Insights

• ACA subsidies can significantly reduce healthcare costs for early retirees under 65, with potential savings bringing premiums down to under $200 from $2,500 a month, depending on income levels.
• Despite Federal Reserve interest rate cuts, mortgage rates are unlikely to fall to 5% soon, currently remaining in the lower 6% range due to broader economic factors.
• Delaying Social Security benefits until age 70 can result in nearly an 8% annual increase, which may lead to significantly higher lifetime benefits depending on individual circumstances and life expectancy.
• Principal protected notes offer market participation with downside protection but come with risks such as illiquidity and the absence of dividends, making them unsuitable for all investors.