01.14.25 Ask An Advisor With Wes Moss - 10 Things Investors Should Watch Out For in 2025
Digest
This podcast episode features financial advisor West Moss offering insights into the 2025 investment outlook. He highlights ten crucial factors, divided into two parts. The first five considerations include economic resilience (building on 2024's strength), the robust US consumer, rising productivity, the historically positive second year of a presidential cycle, and a balanced perspective on tariff impacts. The second five focus on potential market volatility, the bull market's relatively young age, the importance of dividend reinvestment, the resurgence of bonds, and the fundamental role of company earnings. The episode also includes two segments dedicated to answering listener questions. These questions cover diverse topics such as transitioning to a 60/40 portfolio in retirement, rolling over 529 plan funds, the safety of Modern Woodmen annuities, optimal retirement fund allocation between spouses, long-term care needs, trust fund rollovers, and life insurance strategies in later years. Moss provides practical advice and considerations for each scenario.
Outlines
2025 Investment Outlook: Economic Resilience and Market Trends
Introduction to the "Ask an Advisor" format and a preview of West Moss's discussion of ten key investment considerations for 2025, emphasizing economic resilience and market trends. This includes an overview of the top five factors impacting investment strategies for the coming year.
Top Investment Considerations for 2025 (Parts 1 & 2)
West Moss details ten key investment considerations for 2025. These include economic resiliency, the strong US consumer, rising productivity, the positive historical trend in the second year of a presidential cycle, potential tariff impacts, market volatility, the relatively young bull market, dividend reinvestment, the resurgence of bonds, and the fundamental role of company earnings.
Listener Questions (Parts 1 & 2)
West Moss answers listener questions regarding portfolio allocation strategies (including 60/40 vs. 100% stock), 529 plan rollovers, the safety of Modern Woodmen annuities, retirement fund allocation between spouses, long-term care needs, trust fund rollovers, and life insurance strategies in later years.
Keywords
Economic Resiliency
The ability of an economy to withstand shocks and maintain growth despite challenges.
US Consumer Spending
A major driver of the US economy; strong spending is anticipated in 2025.
Productivity Growth
Increase in output per unit of input; recent acceleration suggests improved efficiency.
Presidential Cycle
Historically, the second year of a US presidential term is favorable for the stock market.
Portfolio Allocation
Distribution of investments across asset classes to manage risk and achieve goals.
529 Plan Rollover
Transferring 529 plan funds to a Roth IRA under specific conditions.
Annuity
A contract providing a stream of payments over time; fixed annuities offer guaranteed rates.
Dividend Reinvestment
Reinvesting dividend payments to increase overall returns.
Bond Yields
The return an investor receives from holding a bond; higher yields make bonds attractive.
Retirement Planning
Strategies for managing retirement funds, including allocation and insurance.
Q&A
Should I switch from a 100% stock portfolio to a 60/40 portfolio at age 68, entering retirement?
A 60/40 allocation is generally more conservative for retirees. Consider target-date funds.
Can I roll over unused 529 plan funds into a retirement account?
Yes, under certain conditions (15 years old, 5 years of contributions), up to $35,000 tax-free into a Roth IRA.
Is my Modern Woodmen annuity a safe place for retirement funds?
Modern Woodmen is highly-rated, but not FDIC-insured; its annuities offer guaranteed interest rates.
Should we cancel our term life insurance policies in our 70s?
No, maintaining term life insurance is advisable at this age due to low premiums compared to the death benefit. Re-evaluate burial insurance.
How should we allocate retirement funds between spouses considering long-term care needs?
(This answer is implied in the summary but not explicitly stated in the Q&A section of the input data. A more detailed answer would be needed to provide a complete response here.)
Show Notes
What does 2025 hold for investors? On this episode of Ask an Advisor, fee-only fiduciary financial advisor Wes Moss breaks down 10 things investors should watch out for in 2025. Should we worry about tariffs? Will the market be more volatile? Can we expect a bull or bear market? You don’t want to miss these valuable insights and more to help you prepare for the year ahead! 10 Things Investors Should Watch Out For in 2025
Plus, Christa shares your #AskWes questions and Wes gives his take. All this and more on the January 14, 2025, Ask an Advisor episode of the Clark Howard podcast.
Submit your questions at clark.com/ask.
We hope you enjoy our weekly Ask An Advisor episodes, in which Christa and Wes discuss investing and retirement savings in depth. Let us know what you think in the comments!
Learn more about Wes: Wes Moss, CFP®
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