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

Podcast: The Clark Howard Podcast

Published: 2025-12-30

Duration: 37 minutes

Guests: Wes Moss

Summary

Wes Moss emphasizes the importance of social capital in retirement happiness, revealing a 'magic number' of friendships. He also analyzes labor market data to predict the future of employment.

What Happened

Wes Moss introduces the concept of the '3.6 Rule' from his 2025 Money and Happiness in America Study, highlighting the significant impact of social connections on retirement happiness. He notes that retirees with at least five close friends are 21% more likely to report being happy, emphasizing that social capital is as crucial as financial capital.

The episode discusses the decline in close friendships over the years, with data showing a drop from 66% of Americans having five or more friends in 1990 to 42% in 2024. Moss attributes this decline partly to the rise of social media and internet use, which has reduced in-person interactions.

Wes Moss examines the recent labor market data, noting an unemployment rate increase to 4.6% due to more people entering the labor force. Despite this, the prime age employment-to-population ratio remains strong at 80.6%, indicating a robust job market for those aged 25 to 54.

In the 'Ask An Advisor' segment, Wes advises a listener named David from Texas against making his 18-year-old son responsible for younger siblings in a will. Instead, he suggests appointing a more responsible adult as a trustee to ensure the well-being of the siblings.

Another listener, Dick from Arizona, inquires about using Roth IRA funds for a home purchase. Wes advises against this, recommending the use of brokerage accounts or a home equity line of credit (HELOC) instead, to avoid potential tax implications.

Eric from Georgia, who was laid off after 12 years in a high-paying role, seeks advice on rebuilding his savings. Wes suggests prioritizing Roth IRA contributions and a taxable brokerage account over a new employer's 401(k), due to the lack of a match and Eric's existing substantial tax-deferred savings.

Wes also touches on the tax implications of Roth conversions, advising that such moves be made in stages if future tax rates are expected to be higher. He notes that some retirees may face higher tax brackets due to pensions and required minimum distributions.

Christa shares additional listener questions with Wes, who provides practical financial advice and insights, emphasizing strategic financial planning alongside maintaining strong social connections.

Key Insights