Podcast Summary — The Clark Howard Podcast

Episode: 02.16.26 — Your Relationship With Money / Self-Employed Retirement Planning
Date: February 16, 2026
Host: Clark Howard
Co-Host: Krista

Overview

This episode delves into two intertwined financial themes: our emotional relationship with money—striking a healthy balance between saving and spending—and essential retirement planning tools for self-employed individuals, particularly the often-misunderstood Solo 401(k)/Self-Employed 401(k). Clark and Krista respond to a wide range of listener questions, offering pragmatic advice that spans everyday spending habits, using financial products wisely, and maximizing tax-advantaged savings for solo entrepreneurs.

Key Discussion Points and Insights

1. Developing a Healthy Relationship with Money

[02:32 - 09:55]

• Clark stresses the importance of mindset and balance:

  • Being overly frugal or overly spendy both carry risks, and the trick is recognizing which traps you might fall into (deprivation vs. overspending).
  • Societal pressures and comparison with others often drive unnecessary or unhappy spending.

• Quote:

  "Money is not a God.…Trying to compare yourself to somebody else who bought the new whatever, that's a bad recipe. Things don't make people happy. Having anxiety from what you owe…that will make you miserable."
  — Clark ([03:11])

• Storytime & Self-Reflection:

  • Clark admits to going overboard with thrift and tells a humorous story of parking far away to avoid hotel parking charges during a book tour, which inadvertently caused Krista to ruin her shoes in a snowstorm ([08:41 - 09:13]).
  • Krista teases Clark about the consequences of extreme cheapness—like his car getting broken into six times because he didn't want to pay for parking ([09:29 - 09:54]).

• Moral:

  • “Balance in life is important.…Once you reach that point that you've really established good financial security, don't deprive yourself of little joys in your life either.”
    — Clark ([07:09])

2. Listener Questions & Practical Financial Tips

[09:56 - 27:47]

a. Bank Account Security

• [09:56 - 11:41]
  • Is it enough to have checking and savings at the same institution with overdraft disabled, or should you use separate banks for security?
  • Clark explains most banks have a "cross default" clause: if one account is compromised, the bank may raid your linked accounts to cover losses.
  • Advice: Check with your institution; at many banks, it’s safer to spread funds across different banks for true security.

b. Sling TV Passes

• [11:41 - 12:35]
  • New: Day passes for TV streaming (e.g. for sports events).
  • Clark sees these as good “sampler packs,” especially during major sports seasons.

c. Zero Percent Financing Deals

• [12:35 - 15:12]
  • Listener asks: Is it safe to use 0% interest deals instead of paying cash?
  • Clark warns: Most “no-no-no” plans (zero down, zero interest, zero payments for a set period) will charge retroactive interest (often 35%+) if you miss even $1 by the deadline.
  • Quote:

    "It is the rarest of rare individuals that will take out... a no-no-no plan… and get every payment done before that period ends. Like, maybe one in a thousand people."
    — Clark ([13:14])

  • Krista shares she’s successfully used these on big purchases, but it requires discipline ([14:24 - 14:56]).

3. Self-Employed Retirement Planning: Solo 401(k)/Self-Employed 401(k)

[18:18 - 21:52]

• Who qualifies:
  • One-person businesses, freelancers, consultants, side-giggers without employees (independent contractors OK).
• Key benefits:
  • Massive contribution limits (“over $70,000/year can be stashed, grow tax free and then spent tax free” with Roth option).
  • Both Traditional (pre-tax) and Roth (after-tax) versions—choose based on your income bracket and retirement plans.
• Availability now broad:
  • Major low-fee brokerages (Schwab, Vanguard, Fidelity) make it easy to open, though frontline reps might not know about them—be persistent.
• Warning:
  • Avoid bank-based brokerages due to high, unnecessary fees.
• Quote:

  “This is a great money-saving benefit... the most unknown, underutilized tool out there for tax benefit for you when you run your own place and it’s just you.”
  — Clark ([20:23])

4. More Listener Mailbag: Retirement, Emergency Funds, and Modern Cash Practices

a. Roth Account Withdrawals and Taxes

• [21:52 - 22:29]
  • Clark confirms Roth withdrawals are tax-free both federally and at the state level, so long as you’re eligible.

b. Emergency Fund + COBRA Coverage

• [22:29 - 24:12]
  • Listener asks if six-month emergency funds should factor in possible COBRA (health insurance) premiums.
  • Clark’s advice: “You’ve done something extraordinary and rare... You should be proud, relax, and be happy. If it makes you happier to put another $6k in, go for it, but I wouldn’t say it’s a high priority.”
    ([23:41 - 24:12])

c. Cash Discounts & Shortchanging at Restaurants

• [24:12 - 26:17]
  • Listeners complain about restaurants charging 3% upcharges for credit cards, and cash payments sometimes get rounded up with no coin-change given back.
  • Clark calls this practice “uncool,” suggesting restaurants should at least round down to be fair ([25:20]).

d. Cashless Businesses & The Future of Everyday Payments

• [26:17 - 27:47]
  • Krista notes more restaurants no longer accept cash for safety.
  • Clark blames high US merchant fees on congressional “Visa/MasterCard cartel” failures, but concedes: Everyone must decide if credit/reward points are worth the surcharge.

Notable Quotes & Memorable Moments

• Clark (on comparing yourself to others)

  "Trying to compare yourself to somebody else… That's a bad recipe because it can get you to spend money you shouldn't based on your finances and it doesn't make you happy." ([03:37])

• Krista (on extreme thrift backfiring):

  “You’ve harmed yourself though. Parking your cars in bad parking areas to get free parking. And you’ve had numerous broken into and had a windshield shattered.” ([09:28])

• Clark (on self-employed 401k):

  “It’s the most unknown underutilized tool out there for tax benefit for you when you run your own place and it’s just you.” ([20:28])

• Clark (encouraging healthy balance):

  "Enjoy little pleasures that you deferred earlier in life. Enjoy them." ([06:37])

Timestamps for Important Segments

• 02:32 — Opening on relationship with money and balance
• 08:41 - 09:54 — Clark’s anecdotes about thrift and unintended consequences
• 10:00 - 11:41 — Bank account structure, overdraft, and security
• 12:35 - 15:12 — Dangers of 0% financing “no-no-no” deals
• 18:18 - 21:52 — Deep dive: Self-employed/Solo 401(k) plans
• 21:52 — Roth IRA withdrawals tax status
• 22:29 — Should COBRA costs be included in emergency funds?
• 24:12 - 26:17 — The “cash discount” racket at restaurants
• 26:17 — Cashless businesses, payment habits, and merchant fees

Tone and Style

Clark maintains his trademark blend of practical, direct, and often self-deprecating advice, with light-hearted banter from Krista. Listeners are encouraged to look honestly at their financial habits, seek balance, and use the financial system to their advantage—always with a vigilant eye for rip-offs and pitfalls.

In a Nutshell:
This episode is a guide to financial balance: master your spending emotional triggers, avoid the traps of consumer credit, and—if you work for yourself—seize the tax-advantaged opportunities now broadly available. And yes, sometimes it’s okay to pay for parking.