The Clark Howard Podcast — Episode Summary

Date: January 23, 2026
Episode: Clark Answers His Critics on Clark Stinks / Owning Rental Property
Host: Clark Howard
Producer/Co-host: Krista

Episode Overview

On this Friday episode, Clark Howard dives first into "Clark Stinks," a regular segment where listeners call out his incomplete, incorrect, or questionable advice. Clark responds candidly and invites further input, always aiming to improve his guidance. In the latter half, Clark discusses the current landscape for aspiring landlords, detailing the realities and pitfalls of owning rental properties in today's market. Listener questions round out the episode, with Clark giving actionable, practical advice on retirement planning, credit scores, and home internet options.

1. Clark Stinks: Listener Feedback & Clark’s Responses

(00:36–14:14)

Listener Critiques & Notable Quotes

Critique 1: Roth IRA for Teen with Lawn Job

• Mike in Kansas questions Clark’s advice for a 17-year-old wanting to fund a Roth IRA with lawn-mowing income, asking if there should be proof of reported income.
  • Clark: “He needs to have some kind of record of what he earned from various jobs he did. If he was ever subject to an audit… and doesn't have any kind of trail, [there's a problem].” (02:33)
  • Krista: “I thought they were supposed to file a simple tax return.” (03:18)
  • Clark asks for CPA input: "We’d like to have round two of this." (03:27)

Critique 2: All Timeshares Aren’t Bad?

• Wayne in Florida shares a rare positive Disney Vacation Club resale experience, pushing back against Clark's blanket timeshare criticism.
  • Clark: "That may be the most positive timeshare-related story… Phenomenal.” (04:37–04:48)

Critique 3: Consumer Reports & Safety Ratings

• Corey in California calls out Consumer Reports for not including crash safety ratings in car reviews, despite Clark's endorsements.
  • Clark: "That’s a great question. I didn’t realize they don’t include crash rating...What does that say about me?" (05:26)

Critique 4: Small Landlords & Digital Payments

• Tom in Georgia asks if receiving rent via Venmo is OK for LLCs.
  • Clark: “You would set a separate Venmo account specifically for the LLC… as the recipient there’s not the risk to you that there is the sender from Venmo or Cash app.” (06:12)

Critique 5: Home Insurance Shopping Fail in California

• Perry in California shares his futile search for cheaper insurance in a dysfunctional market.
  • Clark: “I wasted a lot of your time, didn’t I? …That is clearly a broken insurance market.” (07:31–08:45)

Critique 6: Electric Vehicle Insurance Clarification

• Eric in Arizona says higher Tesla insurance rates are due to costly repairs, not just vehicle type.
  • Clark: “The repair costs for Teslas is pretty high...Both Tesla and Lemonade may find out later they blew it and didn’t underwrite well…” (09:10–10:44)

Critique 7: Water & Utility Line Coverage

• Frank in Colorado points out homeowners insurance options for covering utility lines.
  • Clark: “My worry about that is if they then treat a claim as a traditional homeowner’s claim...it may lead to a higher premium…” (11:03)

Critique 8: Stuck in Credit Freeze Hell

• Linda in New York says Clark’s advice (and “SEAL laugh”) was dismissive for those locked out of their credit due to old PIN systems.
  • Clark: “I’ve been talking with my sister-in-law who’s in this situation...I’m going to see if I can come up with [an answer].” (12:39–14:14)

Memorable Listener Burns:

• “Clark stinks worse than a sumo wrestler’s mu washi after a 15 day tournament.” (11:52)
• “You stink like my high school gym socks.” (10:44)

2. Main Topic: Is Now the Time to Buy Rental Property?

(15:53–22:08)

Key Insights

Tough Market for Small Landlords

• Wall Street/private equity firms dominate the rental home market with economies of scale.
• Clark: “How is it that the Wall Street crowd has gone all-in on this in these three years I’ve said this is really hazardous for you?”
• Home prices have risen much faster than rents; in many locations, the economics now don’t work for the small investor.

Clark’s Rental Rule of Thumb

• “Simple [Guideline]: You should be able to charge rent equal to 1% or more per month what it costs you to buy a place.” (15:53)
  • Ex: $200,000 property → $2,000/month rent, minimum.
  • “It’s very difficult today...you may only be able to get like a third of a cent or a half a cent in rent for each dollar that a place costs you to buy.”

When/How Is It Doable?

• Best opportunity: distressed properties needing major work, assuming you can do most repairs yourself.
  • “You have to buy a place that’s a mess and you have to be capable of doing much of the work yourself.”
• Turnkey or fixer-uppers + paid contractors: rarely viable for the solo landlord in 2026.

Clark’s Own Moves

• “I have two rental properties and I’m hoping to go from two to one soon because the economics just don’t support [it]…something that has made me a lot of money over the years.”
• Invites real estate professionals to challenge his assessment: “If you feel I’m missing a strategy that would make it work, I’d love your feedback.”

Memorable Moment

• Clark discouraging a would-be landlord at Chick-fil-A: “Maybe I was too negative, but I don’t think so.” (next time: 19:25)

3. Listener Q&A and Money-Saving Advice

(22:08–27:56)

Retirement Planning for the Self-Employed (22:08–24:29)

• Caroline in Arizona: High income, husband becoming a 1099 entrepreneur, can’t use Roth IRA, where to save?
  • Clark: “He can set up his own retirement account...either a Solo 401(k) or a SEP IRA. Some firms let you do a Solo Roth 401(k), others traditional. SEP requires virtually no paperwork.”
  • Choose between Roth or traditional for the Solo 401(k) based on expected tax bracket.

Credit Score Factors (24:29–26:15)

• Todd in Florida: Should I have 11 credit cards per FICO suggestion?
  • Clark: “If your credit score is already rock solid...you can ignore it...Pay every bill on time, keep utilization low. That’s almost all that matters.”

Home Internet in Rural Areas (26:15–27:56)

• Megan in Pennsylvania: Only choice is capped, slow LTE internet for $50/mo—What to do?
  • Clark: “Only way to know if it’s good enough is to try it...If you go over the cap, you get throttled...You do have Starlink as an option. Everyone I know who’s gotten it loves it, but it’s more expensive.”

4. Notable Quotes & Memorable Moments

• “We’d like to have round two of this.” — Clark, on inviting CPAs to debate Roth IRA rules for teens (03:27)
• “That may be the most positive timeshare-related story … Phenomenal.” (04:37)
• "If your credit score is already rock solid...you can ignore it." (24:47)

5. Segment Timestamps

• 00:36–14:14: Clark Stinks — Listener complaints, Clark’s responses on Roth IRAs, timeshares, car reviews, landlord payment tech, insurance headaches, and credit freezes.
• 15:53–22:08: Deep dive on rental property ownership in 2026 — why the economics have shifted and what it takes to make it work.
• 22:08–24:29: Retirement savings for self-employed (Solo 401(k) vs SEP IRA)
• 24:29–26:15: Credit score tips: how many cards is “too many”?
• 26:15–27:56: Options for rural home internet when faced with limited, expensive choices.

6. Episode Tone & Takeaways

Clark maintains his signature self-deprecating, conversational, and candid style throughout the episode—enthusiastic about empowering listeners, not afraid to admit when he’s wrong, always striving for practical, real-world advice. Critiques are welcomed, with some humor and humility.

Core Takeaways:

• Always keep documentation for tax-sheltered accounts funded with odd jobs or cash income.
• Timeshare experiences occasionally can be positive, but are rare exceptions.
• Don't expect rental property riches in today's market unless you find fixer-uppers and do most work yourself.
• Compare Starlink and LTE options if stuck with slow home internet.
• Only credit lines and utilization really matter for strong credit scores, not number of cards.

For more money-saving tips and to submit your own questions or “Clark Stinks” comments, visit Clark.com.