The Clark Howard Podcast – Episode Summary: January 10, 2025

Title: Clark Answers His Critics on "Clark Stinks" & Find Your Best Phone Plan
Host: Clark Howard
Release Date: January 10, 2025

Introduction

In this episode of The Clark Howard Podcast, host Clark Howard engages directly with his audience by addressing criticisms in the "Clark Stinks" segment. Additionally, he provides actionable advice on optimizing cell phone budgets, helping listeners save significant amounts annually. The episode is a blend of listener interactions, expert insights, and practical financial tips aimed at empowering consumers to make informed decisions.

Responding to Critics – "Clark Stinks" Segment

Clark Howard opens the episode by embracing feedback from his audience through the "Clark Stinks" segment, where listeners voice their criticisms and seek clarifications on previous advice.

1. LED Bulb Advice Criticism

A listener named Greg challenges Clark's previous advice regarding LED bulb usage.

• Listener Greg (03:06): "If you want to know how bright a bulb is, look at the lumens... You can put an LED that actually uses 15 watts in a 40 watt rated light fixture, no problem."

• Clark Howard (03:06): "Greg, 100% correct. What’s so phenomenal is how cheap LED bulbs are now... They save you a lot in electricity over the years."

Clark acknowledges Greg's expertise, reinforcing the cost-effectiveness and versatility of LED bulbs.

2. Credit Card vs. Bank/Brokerage Bonuses

Listener Joe expresses frustration over the podcast's focus on credit card rewards instead of lucrative bank and brokerage bonuses.

• Listener Joe (04:00): "We get it... But you don't listen when we want to hear about bank bonuses or brokerage bonuses that easily generate far more money."

• Clark Howard (04:59): "I'm a little flaky... These bonuses are perfectly legal what you're doing and thank you for sharing for others that are infinitely great at detail that they should be doing this too."

Clark admits his oversight, explaining that while he personally receives bonuses, he might not highlight them due to the complexity involved in effectively leveraging these offers.

3. Medicare Advantage Health Plans

John raises concerns about Medicare Advantage plans allegedly shifting costs to taxpayers and denying care to seniors.

• Listener John (06:28): "I always thought the whole system... is supported by US taxpayers... pharmacies these plans make by denying care to seniors."

• Clark Howard (06:50): "Medicare Advantage plans can work great for regular routine stuff... But when someone gets a really complicated or expensive illness, the plans may deny necessary care to save money, resulting in patient dumping back into traditional Medicare."

Clark explains the financial incentives that lead Medicare Advantage plans to deny costly treatments, ultimately disadvantaging those with severe health issues.

4. Body Donation to Medical Schools

A listener shares a positive experience with body donation, countering Clark's previous belief about age restrictions.

• Listener (08:37): "My father was 75... UNC Chapel Hill accepted his body donation and honored him with a ceremony."

• Clark Howard (09:17): "I'm going to see if I can do the same donating to medical school... Thanks for suggesting it."

Clark appreciates the listener's insight, expressing interest in body donation as a way to contribute to medical education.

5. Property Tax Regulations in Oregon

Gordon corrects Clark's generalizations about property tax increases.

• Listener Gordon (09:39): "In Oregon... the assessed value of property cannot increase by more than 3% per year... No huge and unfair disparities."

• Clark Howard (10:11): "When I talk about something that affects all 50 states... Federalism allows states to experiment with solutions. I apologize for my generalization about the property tax problem."

Clark acknowledges the specific measures Oregon has implemented to cap property tax increases, highlighting the diversity of approaches across states.

6. Explanation on Index Funds

A 22-year-old listener emphasizes the need for Clark to elaborate on why index funds are recommended.

• Listener (11:37): "You didn't explain why... It's impossible to time the market... Active fund managers don't beat the market 94% of the time over the long term."

• Clark Howard (12:49): "Linda, thank you. The most important thing about being in index funds is that you stay the course... Active funds tend to trail the market over time."

Clark underscores the advantages of passive investing through index funds, stressing the difficulty of market timing and the consistent underperformance of active fund managers.

7. Walmart Delivery Tipping Practices

Pete raises concerns about tipping Walmart delivery drivers and the potential impact on service quality.

• Listener Pete (14:07): "If you don't tip the driver... it's hard to tell how your item is delivered, and the driver might get shorted."

• Clark Howard (14:34): "Walmart is moving towards using their own fleet of drivers and trucks... Do people tip Amazon drivers? I've not heard of that before."

Clark discusses the evolving landscape of delivery services, noting the shift from third-party to in-house delivery fleets and the uncertainties around tipping practices in different services.

8. VIN Sharing and Vehicle Sales Safety

Richard warns about the risks of sharing Vehicle Identification Numbers (VINs) due to potential VIN washing scams.

• Listener Richard (15:11): "I gave my VIN to a couple of people... Now my VIN is out there."

• Clark Howard (15:43): "VIN washing or cloning is a serious issue... It's crucial to background any vehicles you buy to avoid purchasing ones with hidden histories."

Clark advises meticulous verification when selling vehicles, emphasizing the importance of protecting one's VIN from fraudulent activities while ensuring transparency for buyers.

Optimizing Your Cell Phone Budget

Shifting focus from addressing criticisms, Clark delves into practical advice on managing cell phone expenses, a significant area where many consumers overspend.

1. The Trap of Unlimited Plans

Clark highlights that many consumers pay for unlimited data plans despite minimal usage, leading to unnecessary expenses.

• Clark Howard (22:31): "A lot of us are paying for unlimited data on our cell phones when we barely use any. Why pay for unlimited when we didn't need unlimited?"

By switching to providers like Google Fi, which offer data usage tracking and capped plans, listeners can align their plans with actual usage, potentially saving hundreds annually.

2. Exploring Discount Brands

Clark explains how major carriers own multiple discount brands, providing more affordable options without compromising service quality.

• Clark Howard (22:31): "Verizon owns Straight Talk, Visible, and Total Wireless... T Mobile has Cricket and others, but not as extensive."

By utilizing these subsidiary brands, consumers can access similar network services at a fraction of the cost, maximizing savings without sacrificing connectivity.

3. Utilizing Phone Plan Finder Tools

To facilitate informed decision-making, Clark introduces a phone plan finder tool available on his website.

• Clark Howard (27:23): "I have a phone plan finder tool where you can put in your situation... The goal is for an individual to save you $500 a year for a family plan to save you $1500 a year."

This tool helps users compare various plans based on their specific needs, ensuring they select the most cost-effective option tailored to their usage patterns.

Current Consumer Trends and Insights

Beyond responding to critics and providing budget tips, Clark touches upon notable trends in the consumer market.

1. Amazon Hull vs. Competitors

Clark discusses Amazon's competitive response, Amazon Hull (spelled H-A-U-L), aimed at challenging platforms like Temu and Shein.

• Clark Howard (27:43): "Amazon Hull is Amazon's competitive response to losing market share to Temu and Shein... It's a great source for ridiculously cheap prices but with longer shipping times."

While Amazon Hull offers significant savings, Clark notes that platforms like Temu currently offer stronger competition. However, he anticipates Amazon Hull will become a formidable competitor over time.

2. Selling Homes to Companies vs. Traditional Agents

Dan from Ohio inquires about the legitimacy and fairness of companies that buy homes directly compared to traditional real estate agents.

• Clark Howard (29:34): "Selling to companies like Open Door and Offer Pad often means accepting lower prices... These companies focus on quick sales with guaranteed purchases but may not offer fair market values."

Clark advises homeowners to compare offers from these companies with those from traditional agents, who can provide competitive pricing based on market comps, ensuring better financial outcomes.

Managing Rising Insurance Costs

Addressing concerns about escalating car and home insurance premiums, Clark offers strategies to mitigate these expenses.

• Listener Darla (33:11): "Our car and house insurance is skyrocketing... What can be done to decrease the cost?"

• Clark Howard (33:22): "Thoroughly shop the market... Consider raising your deductibles to reduce premiums... Combine auto and home insurance for potential discounts."

Clark emphasizes the importance of shopping around, comparing quotes, and adjusting coverage options like deductibles to find the most affordable insurance solutions without compromising necessary protections.

Conclusion

In this episode, Clark Howard effectively navigates through listener feedback, correcting misunderstandings, and providing deeper insights into various financial topics. From scrutinizing Medicare Advantage plans and defending the use of index funds to offering practical tips on phone plan optimization and managing insurance costs, Clark remains dedicated to empowering his audience with actionable advice. By addressing both critiques and providing solutions, this episode exemplifies Clark Howard's mission to help consumers save more, spend less, and make informed financial decisions.

For more resources and personalized financial tools, visit Clark.com and ClarkDeals.com.

Notable Quotes with Timestamps:

• Clark Howard (03:06): "What’s so phenomenal is how cheap LED bulbs are now... They save you a lot in electricity over the years."

• Listener Joe (04:00): "We get it... But you don't listen when we want to hear about bank bonuses or brokerage bonuses that easily generate far more money."

• Clark Howard (06:50): "Medicare Advantage plans can work great for regular routine stuff... But when someone gets a really complicated or expensive illness, the plans may deny necessary care to save money."

• Listener Gordon (09:39): "In Oregon... the assessed value of property cannot increase by more than 3% per year... No huge and unfair disparities."

• Listener (11:37): "Active fund managers don't beat the market 94% of the time over the long term."

• Clark Howard (12:49): "The most important thing about being in index funds is that you stay the course."

• Clark Howard (22:31): "A lot of us are paying for unlimited data on our cell phones when we barely use any. Why pay for unlimited when we didn't need unlimited?"

• Clark Howard (27:23): "The goal is for an individual to save you $500 a year for a family plan to save you $1500 a year."

• Clark Howard (33:22): "Thoroughly shop the market... Consider raising your deductibles to reduce premiums... Combine auto and home insurance for potential discounts."

This comprehensive summary encapsulates the key discussions and insights from the episode, providing valuable information for both regular listeners and newcomers seeking to enhance their financial well-being.