03.03.2026 Ask An Advisor With Wes Moss - The Clark Howard Podcast Recap

Podcast: The Clark Howard Podcast

Published: 2026-03-03

Duration: 36 min

Summary

In this episode, Wes Moss discusses the importance of dollar cost averaging in investing, while also addressing the psychological challenges that come with investing lump sums. He reassures listeners that it's never too late to start saving, regardless of their current financial situation.

What Happened

The episode kicks off with Wes Moss and Kristen discussing a chaotic travel experience that highlights the importance of having a good travel agent. Wes shares how he successfully navigated a last-minute cancellation and received a refund thanks to utilizing an agent, which made the process much easier. This anecdote sets the stage for the importance of having support systems in financial planning as well.

Transitioning to the main topic, Wes dives into the concept of dollar cost averaging (DCA), explaining its effectiveness for most American investors. He emphasizes that many people are already practicing DCA through their 401(k) contributions, which allows them to invest steadily over time. Wes contrasts this with the lump-sum investment approach, likening it to jumping into a cold lake versus wading in slowly. He notes that while DCA is psychologically easier, a lump-sum investment often yields better returns historically, but is harder to commit to due to the fear of market fluctuations.

Key Insights

• Most Americans are already dollar cost averaging through their 401(k).
• Lump-sum investing tends to outperform dollar cost averaging historically.
• It's psychologically challenging to invest a large sum at once.
• It's never too late to start saving or investing for retirement.

Key Questions Answered

What are the advantages of dollar cost averaging?

Wes Moss explains that dollar cost averaging (DCA) allows investors to spread out their investments over time, which can mitigate the risk associated with market volatility. Since most Americans contribute to their 401(k) plans monthly, they're effectively practicing DCA without even realizing it. This method helps in making investing psychologically easier as it avoids the stress of timing the market.

Is it better to invest a lump sum or use dollar cost averaging?

According to Wes, historically, investing a lump sum tends to be more advantageous than dollar cost averaging. He notes that statistically, you are better off 'cannonballing' into the market most of the time because markets generally trend upwards. However, the psychological barrier of investing a large amount all at once can deter many individuals from taking that leap.

How can I recover money after a travel cancellation?

Wes shares his experience of using a travel agent to handle a cancellation efficiently, which resulted in getting his money back quickly. He emphasizes the value of having experts on your side when dealing with complex travel arrangements, especially when unexpected situations arise. Utilizing an agent can save time and provide peace of mind during chaotic situations.

What should I do if I feel behind on my savings?

Wes reassures listeners that it's common to feel behind on savings, but he emphasizes that 'it is never too late to start.' Many people are in similar situations, and starting to save, no matter how late, is crucial. He encourages listeners to take control of their financial future and to remember that many happy retirees started saving later in life.

What psychological factors affect investing decisions?

Wes discusses the psychological challenges that come with investing, particularly the fear of market downturns when considering lump-sum investments. He likens the experience to the discomfort of jumping into cold water versus wading in, highlighting how our minds can sometimes make investing feel more daunting than it is. Understanding these psychological barriers can help investors make more informed decisions.