The Clark Howard Podcast Episode: Clark Answers His Critics on "Clark Stinks" / Maximize Your Savings Release Date: January 17, 2025

Introduction

In this candid episode of The Clark Howard Podcast, renowned money expert Clark Howard engages directly with his listeners' critiques in the segment aptly titled "Clark Stinks." Aimed at fostering transparency and improving his advice, Clark opens the floor to honest feedback while delving into critical financial topics, including retirement planning, consumer protection, and financial product evaluations. Additionally, Clark addresses a significant lawsuit against Ameriprise, shedding light on broader issues within the banking and brokerage industries.

Clark Stinks Segment

Time Stamps and Notable Quotes Included

1. Retirement Contribution Limits

   • Listener Ryan [03:28]: Criticizes Clark's stance on varied retirement account contribution limits, arguing that higher limits for business owners incentivize employer-sponsored plans benefiting lower-income employees.
   • Clark Howard [03:28]: "Our current Alphabet soup system for retirement is not working for the typical American working person because it's too complicated... We need a simplified system where even if an employer provides a match, it's into an account that's the employees already have and doesn't have to be ported from employer to employer."

   Clark acknowledges Ryan's perspective but emphasizes the complexities and administrative costs that justify differing contribution limits across retirement plans.

2. Toilet Paper vs. Bidets

   • Listener Charlie [05:22]: Points out Clark's missed mark when recommending toilet paper over bidets, sharing personal success with a home-installed bidet.
   • Clark Howard [05:37]: Comments on the appeal and cost of high-tech bidets, "The Japanese Toto, you know, they have heated seats and they do all kinds of crazy things and they also have a crazy kind of price."

   Clark admits the oversight and reflects on the cost-effectiveness and hygiene benefits of bidets compared to traditional toilet paper.

3. Extended Warranties and Supplemental Insurance

   • Listener [06:18]: Highlights the financial drain of extended warranties, advocating for self-saved funds over costly insurance.
   • Clark Howard [06:28]: "Don't buy them. Don't buy them ever. And the next time a TV person says to you, you need to protect this investment in the TV you're buying, all you got to say is a TV is not an investment. It's not."

   Clark reinforces his stance against extended warranties, emphasizing their poor return on investment for consumers.

4. Travel Insurance Coverage

   • Listener Susan [07:43]: Critiques Clark's advice on travel insurance, noting limited coverage caps in popular credit card offerings.
   • Clark Howard [08:00]: Acknowledges the gap in coverage for expensive trips, "We've got this gap in the marketplace and I don't have an easy answer for people buying really, really expensive trips."

   Clark discusses the limitations of current travel insurance options and the challenges in addressing high-value trip coverage.

5. Cutting the Cord and Rural TV Access

   • Listener Stephen [08:50]: Shares frustrations with limited over-the-air TV options in rural areas, making cable or alternative internet services necessary.
   • Clark Howard [09:28]: Recognizes the issue, "This has been a problem in rural America forever... I mean, you get so far out and even a big rooftop antenna is not going to pull in a broadcast signal."

   Clark empathizes with the challenges faced by rural listeners and acknowledges the limitations of over-the-air TV in remote areas.

6. Purchasing Expensive Vehicles

   • Listener Robert [10:20]: Criticizes Clark for advising the purchase of high-priced vehicles, suggesting more economical alternatives.
   • Clark Howard [11:23]: Responds candidly, "If I was encouraging somebody to spend an enormous amount of their take-home pay on a brand new Camry, then obviously I had a screw loose and I wasn't thinking clearly."

   Clark concedes the misstep and reiterates his preference for used vehicles, highlighting market fluctuations that affect new vs. used vehicle pricing.

7. Employer 401(k) Matches and Roth Contributions

   • Listener Hmong Hermang [12:20]: Points out inaccuracies in Clark's portrayal of employer 401(k) matches as "free money."
   • Clark Howard [12:59]: Clarifies, "Employees that don't participate in the 401(k) traditional or Roth miss that match money that to them would be like a built-in raise." He also explains recent changes allowing post-tax matches.

   Clark appreciates the correction and elaborates on the nuanced benefits of employer-sponsored retirement contributions.

8. Building Credit for Children

   • Listener Brian [14:06]: Discusses experiences with credit card approvals for minors and the challenges under age 21.
   • Clark Howard [14:56]: Explains bank-specific criteria and reiterates the importance of understanding individual bank policies.

   Clark offers insights into credit-building for young adults, acknowledging the stricter requirements set by certain banks like Bank of America.

9. Negative Mortgage Reporting

   • Listener Anthony [26:22]: Reports inaccuracies in mortgage balance reporting affecting his FICO score.
   • Clark Howard [28:10]: Advises filing a complaint with the Consumer Financial Protection Bureau, sharing his own past experiences resolving similar issues.

   Clark provides actionable steps for resolving credit report discrepancies, emphasizing persistence in dealing with financial institutions.

10. Using 403(b) for Educational Expenses

    • Listener Chelia [30:47]: Seeks advice on using her 403(b) retirement account to fund her daughter’s veterinary school without penalties.
    • Clark Howard [31:34]: Explains the nuances of transferring 403(b) funds and the conditions under which penalties can be avoided.

    Clark offers detailed guidance on the complexities of utilizing retirement funds for educational purposes, directing listeners to specialized resources for further assistance.

Ameriprise Lawsuit and Banking Practices

Timestamp: [21:38] – [26:06]

Clark Howard delves into a lawsuit against Ameriprise, highlighting systemic issues within major banks and brokerage firms regarding the underpayment of interest on savings accounts. He criticizes the deceptive practices where institutions pay negligible interest rates despite rising market rates, exemplifying this with cases involving Charles Schwab and Morgan Stanley. Clark underscores the frustration consumers face when banks fail to transparently communicate account statuses, often leading to legal battles and loss of trust. He emphasizes the importance of consumers being vigilant about where they place their savings and encourages moving funds to FDIC-insured institutions that offer competitive interest rates.

Notable Quotes:

• "This is your money. I want it working for you." [21:38]
• "It’s a rot to the core that goes on with the big banks and the brokerage houses." [21:38]

Listener Questions and Financial Advice

Throughout the episode, Clark addresses multiple listener questions, offering practical financial advice:

• Credit Monitoring Tools: Clark discusses the benefits and intentions behind free credit monitoring services like American Express's "My Credit Guide," explaining how these tools help companies identify potential customers.

• Educational Expenses: Detailed guidance is provided on using retirement accounts for education, including the specific conditions and potential penalties involved.

Clark's responses are characterized by his trademark honesty and actionable recommendations, reinforcing his commitment to empowering listeners with financial knowledge.

Notable Quotes:

• "Don't buy them ever. A TV is not an investment." [06:28]
• "If you look at it as employer saying hey I'm spending this money not for that employee, they voluntarily took a pay cut. They shouldn't take." [14:06]

Conclusion

In this episode, Clark Howard embraces constructive criticism from his audience, demonstrating his dedication to refining his advice and addressing the real-world financial challenges listeners face. By tackling a range of topics from retirement planning intricacies to consumer protection against misleading financial products, Clark provides a comprehensive overview of contemporary financial issues. His discussion on the Ameriprise lawsuit further underscores systemic problems within financial institutions, advocating for greater transparency and better consumer practices. As always, Clark's approachable demeanor and expertise make complex financial matters accessible, empowering listeners to make informed decisions towards financial freedom.

Final Thoughts

The Clark Howard Podcast continues to serve as a vital resource for individuals seeking to enhance their financial well-being. This episode's focus on addressing criticism exemplifies Clark's commitment to growth and his relentless pursuit of providing honest, practical financial advice.

For more insights and personalized advice, listeners are encouraged to visit www.clark.com/askclark and engage with Team Clark through various free resources dedicated to helping consumers save more, spend less, and avoid financial pitfalls.