02.07.25 Clark Answers His Critics on Clark Stinks / Energy Prices & Home Building

Summary

Episode Summary: The Clark Howard Podcast – "Clark Answers His Critics on Clark Stinks / Energy Prices & Home Building" (February 7, 2025)

In this insightful episode of "The Clark Howard Podcast," host Clark Howard engages directly with his audience by addressing criticisms in the "Clark Stinks" segment while also exploring the pressing issues of rising energy prices and innovative home building practices. Released on February 7, 2025, the episode offers a blend of listener feedback, expert responses, and actionable advice to help consumers navigate financial challenges.

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Clark Stinks: Addressing Listener Criticisms

The "Clark Stinks" segment is dedicated to listeners voicing their concerns and critiques about Clark's previous advice. Clark takes this opportunity to clarify misconceptions, provide deeper insights, and acknowledge areas where his recommendations may need refinement.

1. MRI Utilization at Standalone Facilities

   • Listener Feedback (02:06 – 04:56): Brandon criticizes Clark’s advice on obtaining MRIs from standalone facilities, arguing that not all standalone MRIs meet hospital standards. He points out that variability in scan quality and protocols can lead to issues with hospital acceptance and liability concerns.
   • Clark's Response (03:05 – 04:56): Clark acknowledges the monopolistic tendencies of hospital systems and emphasizes the need for federal regulations to allow hospitals to accept MRIs from affordable standalone facilities. He shares his personal experience of successfully using a standalone MRI to manage his knee issues, highlighting the cost benefits and accessibility.

2. Switching Cell Phone Carriers

   • Listener Feedback (05:23 – 07:38): Paul and Chris express frustration over the complexities involved in switching cell phone carriers, such as obtaining account numbers and dealing with device compatibility issues, which Clark had previously advised to pursue for cost savings.
   • Clark's Response (05:23 – 07:58): Clark provides a step-by-step guide on porting out a phone number, including obtaining account details and unlocking devices. He admits to glossing over these complexities in his advice and acknowledges the importance of considering coverage and reliability before switching carriers. Clark specifically addresses challenges with Apple devices and Google Fi, noting improvements that have made the process smoother.

3. Public WiFi Security and VPN Recommendations

   • Listener Feedback (13:22 – 13:59): A listener criticizes Clark’s advice on using public WiFi, suggesting that Clark didn’t adequately emphasize the importance of using VPNs to protect personal data.
   • Clark's Response (13:59 – 14:45): Clark agrees with the listener's recommendation, highlighting trusted VPN services like Google's free VPN on Pixel phones and ProtonVPN. He underscores the necessity of ensuring secure connections when using public WiFi to safeguard against potential cyber threats.

4. Payment Methods at Winco Foods

   • Listener Feedback (14:45 – 15:03): Christine points out that Winco Foods only accepts debit cards, checks, or cash, contrary to Clark’s previous mention, which could surprise and inconvenience customers.
   • Clark's Response (15:03 – 15:52): Clark acknowledges the oversight and expresses appreciation for Winco's unique, employee-owned model. He advises listeners to be aware of payment methods to avoid embarrassment at checkout and commends Winco’s business practices.

5. IRS Direct File Limitations

   • Listener Feedback (15:52 – 16:20): Eric criticizes Clark’s recommendation of IRS Direct File, revealing its limitations for those contributing to IRAs or needing to itemize deductions.
   • Clark's Response (16:20 – 17:30): Clark clarifies that IRS Direct File is best suited for simple tax returns and explains alternative options, such as Free [e-mail], for more complex filings. He encourages listeners to utilize these free resources while cautioning against paid memberships offered by credit bureaus.

6. Background Check Fees in Home Rentals

   • Listener Feedback (17:30 – 18:20): Kathy argues that landlords should absorb background check fees instead of passing them on to rental applicants, especially in tight housing markets like Hawaii.
   • Clark's Response (18:20 – 20:35): Drawing from his own experience as a landlord, Clark explains the necessity of background check fees to cover administrative costs and prevent frivolous applications. He proposes a centralized system for background checks to reduce repetitive fees for applicants, finding it a fair compromise.

7. 60-Day Rule for Credit Card Charge Disputes

   • Listener Feedback (11:53 – 12:10): Mike questions Clark’s assertion that fraudulent credit card charges must be disputed within 60 days.
   • Clark's Response (12:10 – 13:22): Clark confirms the 60-day rule applies to statement discrepancies, including fraud, and emphasizes the importance of timely dispute to retain legal rights. He notes that some credit card companies may offer flexibility in specific cases.

8. Fidelity’s Fiduciary Practices

   • Listener Feedback (32:11 – 37:27): Taylor shares a negative experience with Fidelity’s advisors, highlighting misleading fiduciary claims and high commissions on annuities.
   • Clark's Response (32:50 – 37:27): Clark expresses deep concern over Fidelity’s dual-role practices, distinguishing between their fiduciary services and commission-based sales. He advocates for fully fiduciary firms like Vanguard, which prioritize client interests without hidden commissions. Clark criticizes Fidelity’s approach for potential reputational damage and advises listeners to seek transparent and client-focused financial advisors.

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Energy Prices & Home Building: Navigating Rising Costs

Beyond addressing listener feedback, Clark delves into the escalating energy costs affecting households and explores innovative home building practices aimed at reducing long-term expenses.

1. Impact of AI Data Centers on Energy Prices

   • Discussion (22:01 – 28:19): Clark explains that the proliferation of AI data centers, particularly those driven by Silicon Valley companies, is significantly increasing energy consumption. Utilities are struggling to meet this heightened demand, leading to higher and more volatile energy prices for consumers. He underscores how these infrastructure expansions directly contribute to soaring utility bills and urges listeners to adopt energy-efficient measures to mitigate costs.

2. Innovative Home Building: Passive and Fire-Resistant Homes

   • Passive Homes (28:19 – 32:11): Clark introduces the concept of passive homes, which are slightly more expensive to build (3-10% higher construction costs) but offer substantial long-term savings through extreme energy efficiency. He cites success stories from Massachusetts builders who are thriving with passive home models, highlighting the benefits of virtually eliminating utility bills over the home's lifecycle.
   • Fire-Resistant Construction (32:11 – 37:27): Addressing the increasing wildfire risks, Clark discusses the importance of constructing fire-resistant homes. He describes how certain neighborhoods in Southern California have successfully minimized fire damage through these building practices, emphasizing the dual benefits of safety and durability.

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Notable Quotes

• Brandon (02:12): "Clark doesn't totally stink, but he's smelling like my laundry after I forget to throw it in the dryer right away."

• Clark Howard (03:05): "Hospital systems are so hostile to people going to outside facilities that are far cheaper that they're throwing up every roadblock possible."

• Clark Howard (05:23): "When you're going to do what's called a port out, you have to have your account number, the unlock code, and remove any security locks. These steps are crucial for a smooth transition."

• Chris (07:38): "It's a good choice to look at coverage for your area before deciding to make a switch to a cheaper carrier."

• Clark Howard (12:10): "The 60-day rule is a real thing, but there are situations that offer some flexibility beyond that period."

• Taylor (32:11): "I'm very confused when he wanted me to put my money into a single premium immediate annuity. How can they be a fiduciary?"

• Clark Howard (32:53): "A fiduciary must do what is best for you, not what's best for them. Your interests are the only thing that matters."

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Key Takeaways

• Consumer Advocacy: Clark remains committed to empowering listeners by addressing criticisms transparently and refining his advice based on listener feedback.

• Financial Literacy: The episode underscores the importance of understanding the nuances in financial decisions, such as the complexities of switching service providers or navigating tax filing options.

• Energy Efficiency: Rising energy costs are a significant concern, with solutions like passive homes offering long-term savings despite higher initial investments.

• Transparent Financial Services: The discussion on Fidelity highlights the need for transparency and trust in financial advising, advocating for fully fiduciary firms that prioritize client interests.

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Resources Mentioned

• Clark's Resources:

  • Submit a question: www.clark.com/askclark
  • Credit Freeze Guide: clark.com/creditfreezes

• Trusted VPN Services:

  • Google VPN (on Pixel phones)
  • ProtonVPN

• Tax Resources:

  • IRS Direct File
  • Free [e-mail]
  • Credit Karma for free credit monitoring

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This episode exemplifies Clark Howard’s dedication to providing practical, listener-driven advice while addressing broader economic challenges. By engaging with his audience’s concerns and offering comprehensive solutions, Clark reinforces his role as a trusted guide in personal finance and consumer advocacy.

Transcript

[Dricus Du Plessis]

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[Clark Howard]

It'S my pleasure to welcome you here to the Clark Howard Show. You know our mission is to empower you with advice and information that helps you make better financial decisions in your life. And we all make mistakes, don't we? We're human Today I get the opportunity to hear just how human I am in today's Clark Stink segment. And later, something that stinks for all of us is how energy prices are going up for our homes, our apartments, all the rest. The reason behind it may leave you really annoyed, but now it's time to hear how I annoyed you in today's Clark Stitch. I have never encouraged you to speak. You almost think I'm pretty stupid. You should be ashamed of yourself. Well, maybe I'm wrong.

[Dricus Du Plessis]

Maybe I'm wrong.

[Clark Howard]

Maybe you're right, pal.

[Listener]

All right, Clark doesn't totally stink, but he's smelling like my laundry after I forget to throw it in the dryer right away.

[Clark Howard]

That's a bad smell, isn't it?

[Listener]

It's the worst. I hate it when I do that. In a recent episode, he talked about how people can get an MRI done at a standalone facility and then have any hospital read the scan. I am licensed MRI technologist and want to say that this is not totally true. While the standalone facility can make a CD with the scans on it, not all scans are created equal. A hospital may not be willing to read scans from an outside facility for a number of reasons. One of the most common reasons is the scans performed, but may or may not be done to the same standards and different scan types and angles may be used altogether. This can make for a conundrum for the reading radiologist. Because of the sue happy environment we live in. The radiologist could read the scans, but they are the ones assuming liability I have nothing against standalone clinics, but sadly, that is the way things are. Thank you to Clark, Kristen, the rest of the team, for all you do. I listen every morning. Brandon.

[Clark Howard]

Brandon, thank you. So my belief, and it's a strong one, is that the hospital systems are so hostile to people going to outside facilities that are far cheaper that they're throwing up every roadblock possible. When I'm having a problem with my left knee and I had an MRI done of it and I have, if you're curious what's wrong, if you've had knee trouble before, I have two meniscus tears, not big ones, and osteoarthritis, whatever that means. So the radiologist for the freestander writes the report. I've got the report, I've got the desk, I got the whole thing. So I know what the status is. I know what I'm supposed to do. In my case, I have to do pt. But as I shared before, the cost of having it a freestander was 18 what it was at a hospital system. Hospital systems want the ability to overcharge and to create competition we need a requirement, have to be a federal requirement that facilities have the ability to accept an MRI or other scan done outside of the monopoly hospital system. There are problems right now where roadblocks are thrown up. But remember, mine was read by the radiologist and the report was written by the radiologist for the freestander. The radiologists at the hospital system didn't have to review or read anything. I already have a report signed by a radiologist which is generally how it should work at a freestander.

[Listener]

T Mobile is our cell phone provider for five lines and two watches. Also, three of the lines are not co located. I sought out a cheaper plan as Clark suggested. However, Clark didn't mention that transferring from one carrier to another is not seamless. It is ridiculously labor intensive and complicated. While I appreciate Clark's advice to save money on cell phone plans, this advice should have come with a warning label. Otherwise, I love your show and advice, Paul.

[Clark Howard]

Paul, thank you. And I do gloss over that and that's my fault. So when you're going to do what's called a port out where you're going to take your cell phone from an overpriced Verizon, AT&T or T Mobile plan, take it to someone else, you have to have your account number from your account which you should be able to get signing into your account, adding the three and there will be a pen code. Now, I also on my cell Phone plan. I have a pen lock because of problems with people stealing your cell phone service. In order to do the two factor authentication to steal money from your bank account, brokerage, whatever, you have to remove your pen block. So you have three basic steps that trip most people up and that is the account number, the unlock code from your cell phone carrier. And the third thing is if you do have that pen locked, it must be removed. I had to do all three of those things before we ported out to two different companies. When we left T Mobile and went to Visible and went to Google Fi and my case, fortunately it was super breezy, easy and went very quickly because I knew you got to do those junk steps up front.

[Listener]

You had a couple issues with Apple phones, right?

[Clark Howard]

The Apple phone thing was interesting because with Google Fi you think Apple and Google, it's so funny, they are such frenemies. Google pays Apple $20 billion a year I think is the amount to be the preferred search engine on iPhones. And then at the same time they behave like fighting siblings. And so Apple doesn't cooperate with Google Fi. When somebody ports in an iPhone, you got to do these manual changes to settings on an iPhone. And if you don't know that and don't do those, an iPhone doesn't work flawlessly on Google Fi. They do now.

[Listener]

Okay, another one about this. You stink worse than a penguin enclosure that has not been deep cleaned.

[Clark Howard]

I don't know what that's like.

[Listener]

Sounds bad. On your episode where you spoke of phone plans, you forgot to mention the speed and reliability of certain self service providers. I choose Verizon even if it's pricey check just because it won't cut in and out like other services in my area. It's a good choice to look at coverage for your area before deciding to make a switch to a cheaper carrier.

[Clark Howard]

Chris, Chris, thank you very much for that. Verizon has a number of captive cell phone plans. And they tell you with the captive plans if you're essentially going to be a junior partner with Verizon or a full on Verizon partner. And so one of the brand names Verizon owns is Straight Talk. And so with Straight Talk they have different tiers and the top tier gives you the same exact service and access to Verizon's network as you have when you're on Verizon they disclose that, which means the others do make you a junior partner. If you're with Visible they have a plan where you're treated like a senior partner with Verizon another where You're a junior partner, you can guess which is more expensive. So your point is perfectly valid that with cell phone companies you want to know what kind of speeds you're going to have, what kind of prioritization you're going to have, which are the two big things you're referring to that you feel more comfortable with and have had better results. But by staying with Papa Verizon instead of one of their junior children, you.

[Listener]

Talk about the big bad hospital monopolies and lack of price transparency and how they gouge us consumers. However, you did not tell the whole story. Government insurance such as Medicare and in California Medi Cal don't pay much and often underpay the actual cost of the service. So what are hospitals supposed to do? This dynamic makes us private insurance holders with PPO like plans a prime target for large bills. We end up subsidizing everything that the government insurance is not properly paying for. So the blame is not just the hospitals, but also a problem regarding government insurance. I live in an area of California where over half the people are insured through the state's Medi Cal program. You add Medicare insured people to that and you have the hospital serving perhaps over 75% of its patients with insurance that isn't paying them adequately for their work. Also, you said hospitals are supposed to offer charitable care based on the grants they received. It seems to me that treating such a large number with government insurance meets the charitable obligation. Thank you for all you do. Glad you're enjoying more time in retirement, but I already miss the extra shows. David.

[Clark Howard]

David, thank you very much for the last thing you said. So I'm doing three episodes a week instead of five and we picked up one each week we're doing with Ask an Advisor. So we're giving you four instead of five, but I think the fourth is so great that it's almost like we're at four and a half instead of five. And I'm really enjoying having more free time in my life. So thank you for that and I appreciate everything you said and you are completely right on Medi Cal, which is the equivalent of Medicaid in other states, the hospital reimbursements and doctor reimbursements for Medicaid and also for Medi Cal, which are for people that are low income, qualify potentially for government provided health care that is different than what you have through Medicare. And Medicare reimbursements are much, much higher than Medi Cal or Medicaid. So there's a cross subsidy that happens those of us who have Insurance, traditional insurance are subsidizing the running of doctor's offices and medical facilities and hospitals because the reimbursements, especially for Medicaid, are so low that facilities and doctors lose money on every single patient they see. So what you said is true.

[Listener]

I'm not sure if this is a Clark stinks or a Mike stinks, but I've heard Clark say multiple times in recent weeks that you only have 60 days to dispute credit card charges even if they're fraudulent. I thought the 60 days didn't apply in cases of fraud. Did that change or have I always been mistaken? Mike?

[Clark Howard]

So Mike, 60 day rule is one of the oddest things that exists. So if you get a statement and you don't look at it and there's a fraudulent charge on there and you notice on the 61st day, you have lost the legal right to dispute those charges. And so some credit card companies are really accommodating on it, others are not. Let's take an example. This could also be potentially a charge on somebody that appears on your checking account. If you don't notice month after month after month and then you dispute only the last 60 days, you generally will be given the right to dispute. So the 60 day rule is a real thing, but there are situations that are not involving fraud, such as if a supplier goes bust, that a credit card company may give you flexibility well beyond 60 days to dispute a charge. May is the key word.

[Listener]

Clark got a bit stinky in talking about public WI fi. There's nothing wrong with connecting to public WI fi if you're protected. If you travel a lot, you should have your own vpn. Google provides one free on Pixel phones that can be installed on laptops. Also Proton, same folks as ProtonMail. Clark talks about who has a free offering. And also Norse and mollyvad has some safety alternatives. Yep, Mulvod, a subscription is generally low cost and worth the investment to protect yourself outside of your home WI fi. Clark was right about connecting to public WI fi directly, but VPN is a better alternative than a hotspot.

[Clark Howard]

Todd Todd, thank you for that. The VPN thing is potentially a great, great solution. When I in my TV work I do a lot of interviews with data specialists and they all go on and on and on about using what they call a trusted vpn. You have to be very cautious who you use as a VPN that you're not paying for. And reading taking time to read reviews of VPNs in one of the tech sources is a really good idea before you select one. But yes, a VPN gives you a wonderful, good VPN gives you a wonderful layer of protection.

[Listener]

Clark doesn't stink, but he gets an incomplete on his answer involving Winco. I love Winco, but they only accept debit cards, checks or cash. No credit cards. Just want to be sure people don't get surprised or embarrassed at the checkout. You also have to bag your own groceries, which is no big deal for me, but it might be for some people. Christine.

[Clark Howard]

Okay, Christine, this is so funny from when I talked about Winco Foods on the podcast. I've had at least half a dozen people come up to me and want to tell their Winco Food stories. And Winco is in a limited number of states in the west, in the mountain states and on the West Coast. And they're a really different, unique kind of supermarket. 100% employee owned. I love Winco Foods, but I love Aldi. I love Lidl. There are people who don't like supermarkets that have all kinds of unusual things about them. And Winco, I should have mentioned, doesn't take credit cards, but it is a great experience.

[Listener]

Clark, you're as pungent as ever with that IRS Direct File recommendation. I excitedly rushed off to take advantage of it, only to read the fine print and find out that if you contribute to an ira, you're out of luck. For shame. I thought you were the man from Roth. All kidding aside, it turns out you also can't use it if you need to itemize deductions. Oh, well, I guess it's better to fully fund our IRA accounts than save a few bucks on tax prep software. Hope springs eternal that one day I'll be able to use Direct File. Eric.

[Clark Howard]

Eric. Yeah, Direct File is a growing product now serves, I think, ⅓ or 3/4 of the nation's population. Only half the states, but they account for huge percent of the nation's population. And it's the system they've used everywhere else in the developed world for I don't even know how many decades. And it's where the IRS already has all your 1099 W2s, all that it's only for simple tax returns. It is crazy quick. And it's free. Now, the other IRS program, Free File you may or may not qualify for, where you're using third party tax preparation software for free. So Direct File only covers, I think it's 35% of taxpayers have a return simple enough to use Direct File. For the rest of us, you can go to free [e-mail] and see if there is third party software you can use, but that has income limits that exclude roughly the top 10% of income earners in the United States.

[Listener]

I'll squeeze in one more. I'm agitated. Clark suggested to a listener that a background check fee be charged to home rental applicants. Excuse me, Clark Howard, the consumer advocate. Whenever I see an application fee, I don't apply and I live in Hawaii where housing is extremely tight. The owner should pay for the background check fees. It's the cost of doing business. Just like restaurants should not charge service fees to go order fees. What does the restaurant want me to also pay for their electricity bill, the water bill, the trash bill? Unemployment insurance fees? No. Set the prices of the menu items accordingly. Same with home rentals. Take it out of the monthly rent they will be getting. Someone may say, but there may be a lot of applicants. Maybe the applicants are applying at other homes as well and I find it unfair to expect them to pay a background check fee for each place. Kathy wow.

[Clark Howard]

Kathy, I've never so I've been a landlord, just so you know. I've been a landlord since 1983. Still, I'm a landlord today. I wear a landlord hat and I wear a regular consumer hat too. So as a landlord, when I take an application from somebody, I have a lot of expenses for doing the background check. And if there was no fee for doing a tenant application, time to review it, doing the background check and all that, then just as you said, somebody could apply all over whatever Hawaiian island you live on or in whatever city anybody lives in and just willy nilly apply here, there, everywhere and every one of those places will have costs they incur when you may not have been a serious applicant. So I do think, Kathy, what would be better is if there were a central source you could apply, pay one fee and then whatever apartment complex you were looking at living would have access. You would give them an authorization code and they would be able to check the background check that you've already paid for the one time. To me that would be a fair compromise because it is kind of goofy that you have to pay the fee for the same kind of background check over and over and over again. I would see that as a reasonable solution and I want to thank all of you for taking the time today to post your Clark Stings. It helps me. I learn from you, we all learn from each other and it expands my knowledge base and I'm able to give better advice based on your feedback, which I appreciate so very much. If you want to post to Clark stinks go to clark.com clarkston Coming up ahead, we're going to talk about something else that stinks and that is the shocker people are having with their home energy bills. We got to talk this through. I know every operating system.

[Dricus Du Plessis]

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[Clark Howard]

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[Dricus Du Plessis]

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[Clark Howard]

You know, much of the country, I forget how many was 120 million of the 350 million people were in the belt that had that extremely, extremely cold winter weather with in some places record low temperatures, temperatures that were as much as 40 degrees below normal for this time of year. And the next shock comes when the utility bills come in because the amount of energy consumption because the cold weather was crazy off the charts. So those bills are going to be an absolute, complete and total shock. If you know somebody who doesn't have the money to pay their bills, you know, for whatever comes in for their natural gas bill or their electricity bill or whatever because of the extreme winter cold. Please let them know that in most states there are protections against shut offs of heating during the winter months. Eventually if you can't pay the bill, you'll be shut off, but not during winter. And what I recommend if you have a loved one or a friend who can't pay the bill, they need to contact the utility company that the bill is with and tell them you just don't hide from the bill. You tell them you can't pay it right now. They may offer a payment plan, who knows, it varies by state and by utility what they'll do. But the one thing, don't bury your head in the sand. So key in some areas of the country there's financial assistance for low income individuals or the elderly who can't pay their heat bill. So help that individual or help that family with an application for that assistance. That having been said, forgetting the unusual cold weather or if we have an unusually hot summer in various places, that boosts bills. The reality is historically in the United States we've had extremely low power bills and that's changing. And there's a special booster shot that sending bills skyrocketing for consumers around the country. And that's this desire of the Silicon Valley crowd to build all these AI data centers all around the country. And they are sucking up so much power at these data centers that it's forcing utilities into a scramble to generate much more expensive power than what their plans had called for. And you and I are feeling the brunt of those increases as local communities try to get more jobs, want these data centers and the high paying jobs that they may have with them. So there's a direct cost to you and me as consumers with all these data centers springing up around the country. It means we're going to have to be really creative about what we do to lower our bills. One example I read about is something that has existed in very rare circumstances in the United States, but is very common outside the United States. It's when you build what's known as a passive house. I read a story recently about in Massachusetts where a builder is having great success selling homes that are passive. What is a passive home? It's where it costs roughly 3 to 10% more to build the house or the purchase price is 3 to 10% more, but the houses are so energy efficient that for the life cycle of that house, which let's say it's 80 years or whatever the life cycle we use for a house today, it has virtually zero utility bills. So over time you save so much more money on that home. And remember this, let's say the construction cost of a house is 3 or 5% higher, tens a stretch. But let's say it's 3 or 5% higher when it's built, but it's much more energy efficient. That's the structure itself. Why the cost you're paying is the land that house sits on and the permits that were pulled and all that. So it's a rethink of what we do when we look for a home is, is it built in a way that's going to save us money year after year after year after year? And the design elements that are involved in building a more efficient house are not extraordinary in order to make it not cost as much over time or have as much maintenance over time. Now the other big challenge we face, I'm going to throw in is after the tragic fires in Southern California and we have more and more wildfire risk to homes in places in the country. Nobody ever thought about that there are new methods. They're not really new, but new being used where homes are built that are fire resistant. And you may have seen if you followed a lot with the fires in Southern California, where there might be a neighborhood where one house on a street is still standing and all the others around it are just ash heaps is because that house was built as a fire resistant house. And so there are things that we do by habit, by tradition, that are things we need to rethink. And how we build for energy, how we build for longevity are things we've got to rethink that we've never really had to focus on in the United States. But it's time.

[Listener]

Krista Andrew in Iowa says thank you for answering my questions about Robinhood Gold and beneficiaries versus a will a month or so ago. I have a somewhat related question. I'm only 22 years old and I'm not exactly a high earner. Like many Americans, I can afford to put away some money for retirement, but I can't afford to get up to the contribution limits for both the 401k and IRA.

[Clark Howard]

Wait, wait, wait. We gotta stop right here. Because Andrew, you're 22 and at 22 you're already focused in living on less than what you make and saving for your future. Everything you've said is outstanding.

[Listener]

My question is, assuming I'm already taking full advantage of an employer's match, is there any reason to contribute extra to that 401k rather than an IRA that offers a match? Robinhood Gold has a 3% match on all contributions and I know some other companies have matching programs as well. Am I missing something? Unless the indexes or funds I'm investing in have significantly different fees, it seems like a no brainer to put more money into an IRA with a match than a 401k. I've already maxed my match on.

[Clark Howard]

Yeah, you're thinking exactly as you should. So you asked it like a Jeopardy question. The reality is the answer is yes. You want to put into the 401k up to the match. If you're doing the Iraq with the Robinhood Gold and you're getting the match on the first 3%. 3%, absolutely. You would do that before you'd add more contributions beyond the employer match in the 401k. As far as the funds you'd go into in Robinhood, it's your Choice. With the ETFs you buy for your Roth IRA, you're able to buy ultra, ultra, ultra low cost, broad market ETFs that'll cost you virtually nothing in that Robinhood Gold IRA.

[Listener]

Dan in Georgia says what's the scoop on getting free annual credit reports from the three major credit bureaus? I do this every January and it seems like for 2025 Experian and Equifax are broken. Can you help shed some light on this?

[Clark Howard]

So Dan, as far as I can [e-mail] all three are working now. I don't know what could have gone haywire when you attempted to access them. And thank you for bringing this up because most people are not aware that by federal law you have the right to see a free copy of your Equifax, TransUnion and Experian credit reports. The full reports once a year for nothing. And you have to go to this site, that is the official site, not any of them you see advertised on TV. You go to annualcreditreport.com just like you did. Try it again. I expect things will work as they should. Now you don't get a free score there. You get though a comprehensive report and you'll be amazed how much information is on those three reports as far as getting your free scores. If you have credit freezes set up with the bureaus, there's usually with that quote unquote membership, the sign and all that. You may be able to access a free FICO score at each of them. Maybe. But don't fall for any of their ridiculous overpriced memberships that the three credit bureaus try to sell you either at annualcreditreport.com or or at their websites. You want to track your stuff regularly, set up a credit karma and you'll have great information for free in return. Credit karma knows about you to solicit you for stuff. It's a worthy trade off and we.

[Listener]

Find the credit bureaus change phone numbers, all sorts of stuff all the time. And so we keep our credit freeze [e-mail] up to date constantly with step by step on how to do all this. It's clark.com credit freeze. This question's from Taylor in California. I recently rolled an IRA to Fidelity, one of your favorite children. I instantly got a call and email from one of their advisors. He told me that his services were free for account holders over $1 million. And he's a fiduciary. I was very confused when he wanted me to put my money into a. Here's the name of the single premium immediate annuity.

[Clark Howard]

Oh, no, no, no. Of course.

[Listener]

I said annuity. Four letter word. He said his commissions would be $700. And then this is laid out what this annuity looks like.

[Clark Howard]

And I'm looking. All right.

[Listener]

I got a bad feeling about it. How can they be a fiduciary? How can I find out about Fidelity? Also, they want me to roll my other 401k to them. Do they have some program that they get incentives?

[Clark Howard]

Taylor, Taylor, Taylor, thank you. Thank you for this post. All right, first of all, this has been. I'm shallow breathing right now. I just realized I've been very upset about this with Fidelity that you came over there with an account worth a lot of money. Suddenly they've got a bullseye target on you. So Fidelity does things. Two hats. I hate the two hat thing. There are things they do where they operate in a fiduciary capacity. There are things they do that they're not a fiduciary. And the agreement they would have you sign for this piece of garbage annuity would have in it where you would be acknowledging in the contract that Fidelity was not operating as a fiduciary. Free. It's only free because they're not operating as a fiduciary. In this case, the commission would be. Oh, my goodness. The commission would be way more than what they said. This is very, very upsetting to me. I want to contrast this to what Vanguard does. So if you would move this money to Vanguard. Vanguard has PASS personal advisory services. They may be calling it something slightly different now. And they do operate fully under a fiduciary contract with you. What a fiduciary means. For anybody who's not familiar with that term on our YouTube show or on the podcast, a fiduciary must do what is best for you, not what's best for them. Your interests are the only thing that matters, and they're legally obligated to do only what serves you. So with Vanguard, you Pay a maximum of 0.30 of a percent per year was much lower than you typically pay for having a fiduciary financial planner. The amount of money you have, you would be assigned an individual fiduciary advisor who would work with you day after day, month after month, year after year, and would only put you in investments that are ones that have no commission and are ultra low cost. I'm very, very concerned, Taylor, because you're not the first person we've heard from. And plus, I talked about a news story about Fidelity doing the two hats. And I think it's a slippery slope. And I think Fidelity is doing really well as a company. But if you harm your reputation, it's hard to rebuild it. And to me, this kind of practice at Fidelity creates reputational harm, not to mention harm to you as a consumer putting you in a piece of trash annuity. Yuck. We already had Clark Stinks. Now we have Fidelity Stinks, which is a company I love. I mean, it's one of my favorite children.

[Listener]

Are they, though still they might need to get kicked out of the house?

[Clark Howard]

I don't know. Fidelity offers a variety of great products. They offer the Fidelity zero funds, which I love. No commissions, no ongoing expenses. So that's why when you and I have talked about the two hats, I don't like the two hat thing where, yes, I'm a fiduciary here, but then over here I'm the sleazy commission salesperson pretending to you that I'm a fiduciary. I don't like that. I don't like it at all. And I'd love it if Fidelity at some point wants to put somebody on, on the podcast and the YouTube show and do a rebuttal to this. I'm happy to have it because they are one of my. But even, even with your own children, there are times you're not happy with them, right?

[Listener]

Yeah.

[Clark Howard]

I mean, that's life. I'm not happy. Fidelity. I'm not happy.

[Listener]

Dad is not happy.

[Clark Howard]

Dad is not happy. So I hope that you have a wonderful weekend in front of you. Gosh, we're getting closer. For those of us who live in cold parts of the country, you're getting closer and closer to seeing the green shoots pop up out of the snow. We're. We're going to get out of this winter. And if your finances are kind of stuck in winter, one day at a time, you can heal them. And I hope that we can be part of helping you do that. But wherever you feel you get the most solid advice and information that you can trust that helps you take more control of your wallet, do a better job with it. I'm so glad that you're of a mind that you're trying to do that. If you love what we do, know that we're here to serve you so many different ways on social media with our free newsletters, with our websites, our newsletters. You can see what we got [e-mail] newsletters Obviously, clark.com is one of our two websites. The other clarkdeals.com come and everything we're about is you learning ways to save more, spend less, and avoid getting ripped off. And we'll see you next Monday. Have that wonderful weekend.