Podcast Summary: The Clark Howard Podcast

Episode: Regular Retail vs. Costco / The Newly Expanded ABLE Account

Date: January 26, 2026
Host: Clark Howard
Co-host: Krista

Overview

In this episode, Clark Howard explores two central topics:

1. The declining ease and rising costs associated with retail returns, especially contrasted with Costco’s famously friendly policies.
2. Important new expansions to ABLE (Achieving a Better Life Experience) accounts, which offer tax-advantaged saving for individuals with disabilities.

Clark also answers listener questions about Costco insurance, travel scams involving online visa services, and issues with airline credit cards and in-flight amenities. As always, the focus is on empowering listeners to make better financial decisions and avoid common consumer pitfalls.

Main Discussion Points & Insights

1. The State of Retail Returns: Traditional Stores vs. Costco

Key Points

• Retailers Tightening Return Policies
  • More stores (both brick-and-mortar and online) are shortening return windows and adding return fees.
  • Many retailers now charge for mail-in returns even if in-person store returns remain free.
  • Clark: “The era of simple, easy returns is over now.” (03:56)
  • Returns often cost more to process than the item’s original price.
• Consumer Guidance
  • When giving gifts, know the store’s return rules—don’t assume returns will be easy or cost-free.
  • In-person returns are usually less costly than shipping items back.
• Costco’s Exceptionally Generous Policy
  • Most items can be returned “no questions asked,” sometimes with no time limit (certain electronics now have a 90-day window).
  • Special note: If an item’s price drops within 30 days of your purchase, Costco will refund you the difference at the membership desk—even if you don’t have the receipt, because they track purchases electronically.
    • Clark: “All you have to do is ask.” (05:45)
  • Memorable moment: Clark shares that his wife received a $20 Costco shop card after a price drop on her Dyson Airwrap—Costco proactively sent the savings:
    • “Imagine members getting these in the mail, and it’s like, who does that? Who does that? You ever heard of that anywhere?” (06:30)
• Retail Abuses and Customer Etiquette
  • Clark and Krista lament how some customers abuse generous return policies (e.g., returning old, used items for full refunds).
  • Both complain about customers leaving unwanted items—especially perishables—on random shelves, leading to waste and higher costs.

Notable Quotes

• Krista (on Clark’s affection for Costco):
  "That's why you had a dog named Costco and now you have one named Kirkland Signature." (06:46)
• Clark (on retail returns):
  “The cost of returns is eating retailers alive—some returns cost more to process than the item itself.” (~02:20)

Timestamps

• 00:36 – Clark’s mission and show intro
• 01:28 – The tightening of retail return policies
• 03:56 – The end of “easy returns” era
• 05:45 – Costco’s price adjustment policy
• 06:30 – Example of Costco sending shop card after price drop

2. Listener Q&A: Warehouse Clubs and Related Consumer Issues

Costco Insurance

• Listener Question (Russell, Texas): Thoughts on auto and home insurance from Costco?
  • Clark: Virtually no complaints, which stands out compared to the volume of complaints about other insurers.
  • “We get really no complaints about the auto or homeowners insurance products available through Costco…not a source of complaints.” (11:26)
• Timestamps:
  • 11:13 – Insurance question and Costco customer feedback
  • 12:00 – Segue to travel-related question

Travel Scams: Visa Application Sites

• Listener Warning (Tim, Pennsylvania):
  • Was nearly scammed by a fake UK ETA visa application site charging over $100 vs. the legitimate $22 fee.
  • Clark explains the proliferation of predatory visa “services,” especially for countries now requiring electronic travel authorizations for Americans and other tourists.
  • Always use official government sites (.gov/.gov.uk, etc.) for applications.
  • Clark: “I call them phonies because they’re misleading you and just ripping you off.” (13:02)
• Timestamps:
  • 12:03 – Listener recounts ETA visa experience
  • 13:02 – Clark explains the issue

3. The Newly Expanded ABLE Accounts

What is an ABLE Account?

• Definition:
  • A 529A account, modeled after the 529 college savings accounts, allows people with disabilities (or their families) to save up to $100,000, tax-free, for disability-related expenses—without affecting eligibility for federal or state benefits.

2026 Updates

• Key Expansion:
  • Now, eligibility includes individuals who became disabled at any age up to 46 (previously, the disability had to begin before age 26).
  • Clark: “A lot of military veterans may have a disability. An ABLE account would work for any number of reasons…could be after an accident, an injury, or being a victim of violence.” (20:38)
• Contribution and Withdrawal Rules:
  • Money must be spent on qualified disability expenses (QDEs); all withdrawals must match expenses incurred in the same calendar year (no holding receipts and reimbursing yourself years later).
  • Keep meticulous records in case of audit.
  • Never let the balance exceed $100,000 or risk losing benefits.
• Who Should Set Up?
  • Directly with your state ABLE program, never through a commission salesperson (same as Clark’s 529 advice).

Guidance for Listeners

• The ABLE guide on clark.com has been newly updated for recent legislative changes.

Listener Questions on ABLE

• Anonymous (New York): Can you pay qualified expenses out of pocket, save receipts, and reimburse yourself from ABLE later, letting funds grow tax-free like some HSA rules?
  • Clark: “No…with an ABLE, as I interpret the rules, you have to pay current-year expenses in that year. It’s a straightjacket.” (23:54)
• Timestamps:
  • 18:22 – What is an ABLE account?
  • 20:38 – New eligibility rules
  • 23:29 – Listener reimbursement question
  • 23:54 – Clark’s answer: spend/reimburse in same year

4. Additional Listener Questions

Airline Credit Card Limit Issues

• Garth (Virginia):
  • Applied for American Airlines credit card to save $250 but was approved with only a $1,500 limit—not enough to pay for his airfare.
  • Clark notes this is now common due to banks’ fear of delinquencies; recommends either seeking a no-fee alternative for that credit line or closing the account if not useful.
  • “The credit card companies, the big banks, are really terrified about delinquencies and defaults right now.” (25:54)
• Tips: Use the awarded points/cashback if possible, and downgrade to a no-fee card if you can't close right away.
• Timestamp: 25:27 – Airline card question and response

In-flight Entertainment Systems Not Working

• Richard (New York):
  • Is compensation available for broken entertainment screens on transatlantic flights?
  • Clark: Unfortunately, no – “it is not part of the ticket you purchased…just unfortunate.” Odds of airline offering compensation are slim unless you are a frequent flyer or have status.
  • Advises travelers: Always download movies to your own device before long flights.
• Timestamp: 27:43 – Airline entertainment issue answered

Notable Quotes & Moments

• Clark on Customer Behavior (Costco returns):
  “The cost of returns is eating retailers alive—some returns cost more to process than the item itself.” (~02:20)

• Krista on Clark’s Infectious Love for Costco:
  “That’s why you had a dog named Costco and now you have one named Kirkland Signature.” (06:46)

• Clark on ABLE Accounts Expansion:
  “This is significant because historically, before the 529 ABLE came into existence, a disabled person had to be impoverished in order to qualify for any state or federal assistance.” (19:43)

• On ABLE Withdrawal Rules:
  “That is still a straightjacket ... with an ABLE, as I interpret the rules ... you have to pay it from the 529 in that month ... it’s got to be current year expenses.” (23:54)

• On In-flight Entertainment:
  “My wife and I are taking a trip soon and I said, ‘don’t forget, download some stuff because the video system on the plane will likely be broken because that'll be our luck.’” (27:59)

Conclusion

Clark Howard’s key message: Be an informed, empowered consumer—especially in an era when return policies, credit limits, and online information (like visa sites) may not be as friendly or straightforward as before. Costco remains an outlier in customer service, and new ABLE account rules mean more families can save effectively for disabilities, but be mindful of strict usage rules.
Visit Clark.com and ClarkDeals.com for up-to-date resources on saving money, consumer protection, and financial guidance.

For detailed guides and the newly updated ABLE account resource, visit Clark’s website.