Full Show: Are We in a Passive Investing Bubble? and Lump Sum Investing vs. Dollar Cost Averaging | Clark Howard Video
Is passive investing creating a stock market bubble? Fiduciary financial advisor Wes Moss dives into the rise of index funds, why they became so popular, and the potential concerns. Also, Wes covers a classic investing strategy: Dollar Cost Averaging (DCA). He explains how systematically investing over time can smooth out your cost basis and make investing less daunting, especially with a lump sum. We'll look at how DCA stacks up against investing a lump sum all at once – you might be surprised by the numbers!
Plus, Christa shares your #AskWes questions and Wes gives his take. All this and more on the May 20, 2025, Ask an Advisor episode of the Clark Howard podcast. Submit your questions: link
Learn more about Wes: link
00:00 - Intro
01:12 - Are We in a Passive Investing Bubble?
08:56 - Ask An Advisor - If I already have bonds in my Roth 401(k), can I make my Roth IRA more aggressive by going all stocks? (Akshay in North Carolina)
09:43 - Ask An Advisor - My son just rolled $980K from a TSP into an IRA—how should we invest the last 20% for income and diversification? (Joe in Virginia)
17:17 - Ask An Advisor - Is it smart or silly to pay the tax on a Roth rollover using money from an existing Roth account? (Sup in Minnesota)
20:41 - Lump Sum Investing vs. Dollar Cost Averaging
26:38 - Ask An Advisor - Should I avoid withdrawing from investments in up years and only pull money in down markets during retirement? (Dennis in Connecticut)
29:21 - Ask An Advisor - If I’m overwhelmed by investing, is a target date fund still a smart choice—even though Wes doesn’t love them? (Mark in Florida)
31:51 - Ask An Advisor - Is the “reverse glide path” strategy a good idea for reducing risk in early retirement—or are there downsides? (David in Virginia)
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