The Clark Howard Podcast 06.24.25 Ask An Advisor With Wes Moss
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Jun 24, 2025 Wes Moss, a fiduciary financial advisor and author, discusses the pitfalls of chasing market trends influenced by 'FOMO Freddy.' He emphasizes the importance of maintaining a consistent investment strategy for long-term success. Wes introduces the concept of 'dry powder,' highlighting its role as a financial safety net during market downturns. They also tackle listener questions on IRA transfers in volatile markets and the risks of market-linked notes. This insightful conversation equips listeners with essential tools for resilient investing.
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FOMO Freddy's Investment Trap
- FOMO Freddy is the archetype of investors chasing hot trends and bragging about gains at parties.
- An example is a 2020 innovation ETF that surged over 250% then plunged to negative, illustrating the danger of chasing momentum.
Stick to Investing Style
- Different investment styles perform best in different years, switching between them lowers returns over time.
- Sticking with one style can yield nearly $4 million from $500,000 in 20 years versus $2.5 million by chasing best performers.
When to Transfer IRA Funds
- To avoid missing big market days during an IRA transfer, choose a time when market volatility (VIX) is low.
- Missing a day or two during transfer matters less than sitting on the sidelines for months during volatile markets.