The Clark Howard Podcast 02.11.25 Ask An Advisor With Wes Moss
Feb 11, 2025
Wes Moss, a CFP® and fiduciary financial advisor, dives into crucial financial decisions related to pensions and investments. He provides a simple method for choosing between a monthly pension and a lump sum, emphasizing the 6% test and inflation's impact. Wes shares insights on investing during high market periods, challenging the fear of peaks. He also tackles listener questions on investment strategies, exploring Vanguard funds and tax implications for inherited IRAs. This engaging discussion offers valuable tips for navigating financial waters with confidence.
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Pension vs. Lump Sum: The 6% Test
- When deciding between a lump sum and monthly pension, use the 6% test.
- Multiply the monthly amount by 12, then divide by the lump sum; if it's 6% or more, consider the monthly option.
Target-Date Funds: Allocation Matters
- Target-date funds (TDFs) are not all the same; some get too conservative too quickly.
- Focus on the right allocation for you, not just the target date.
Beta vs. Volatility
- Beta measures volatility relative to another asset, usually the S&P 500.
- Different websites use different timeframes, making it hard to find a consistent beta value.