The Clark Howard Podcast 05.13.25 Ask An Advisor With Wes Moss
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May 13, 2025 Wes Moss, a fiduciary financial advisor known for his expertise in investing and retirement savings, joins to break down the world of ETFs, index funds, and mutual funds. He explains when to use each investment vehicle and clarifies the crucial differences between retirement and brokerage accounts. Wes emphasizes the importance of long-term strategies and diversification in navigating market volatility. He also answers listener questions, ensuring that both new and seasoned investors get the insights they need to plan effectively.
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Differences Between Fund Types
- Mutual funds are actively managed and usually expensive due to high operational costs.
- ETFs trade like stocks throughout the day and are generally cheaper, with index funds being a low-cost mutual fund alternative.
Use Funds by Account Type
- Use mutual funds and index funds primarily within retirement accounts for long-term growth.
- Use ETFs in brokerage accounts for liquidity and trading flexibility.
Choosing Tax-Efficient ETFs
- Check Lipper ratings for tax efficiency when choosing ETFs to avoid high tax costs.
- Transition from mutual funds to ETFs carefully to prevent triggering unnecessary capital gains taxes.