The Clark Howard Podcast - Episode Summary

Episode Title: Retirees Returning to Work / Medical Privacy Warning
Date: March 11, 2026
Host: Clark Howard

Episode Overview

In this episode, Clark Howard dives into two important financial topics:

1. The growing trend of retirees returning to the workforce, with a focus on planning pitfalls and strategies to ensure financial stability in retirement, especially when facing unexpected healthcare costs or forced early retirement.
2. A sharp warning about medical privacy risks when using direct-to-consumer labs and genetic testing services, with actionable advice for protecting your sensitive health data.

Clark also answers listener questions relating to investment strategies, handling inherited property, using large bonuses, gym contracts, tax withholdings, and maximizing 529 college savings plans.

Key Discussion Points and Insights

Retirees Returning to Work: Financial Pitfalls and Planning

(Starts at 00:36)

• Early Retirement Risks:

  • Many aim to retire early, but a significant issue is the mismatch between expected and actual retirement expenses, leading to retirees re-entering the workforce.
  • Clark notes:

    “50% of people who go back to work after they retired had to go back...because they didn't have enough money for retirement.” (01:22)

• Losing Career Momentum:

  • Retirement can mean giving up earning potential and a stable career pathway.
  • Once you leave, “you can't easily get back to what you were doing, earning what you were earning.” (02:00)

• Healthcare Gap (50-65 years):

  • The biggest unknown for early retirees is securing health coverage before Medicare eligibility at 65, which can be both costly and uncertain.

• Fiduciary Advice is Key:

  • Clark strongly recommends hiring a fiduciary, fee-only planner for an objective assessment—whether you're unsure about retiring or afraid to leave work due to “fear of the future.” (03:55)

• Age Discrimination Reality:

  • Forced early retirement remains common, especially in corporate settings, despite legal protections:

    "Age discrimination is supposedly illegal... The laws are not enforced at all." (03:24)

  • Sometimes, taking a less prestigious job to bridge to full retirement is the smartest option for financial and health benefit continuity.

Listener Q&A Highlights

Mutual Funds, ETFs, and Taxes

(06:03)

• Question: Are Fidelity Zero funds appropriate for taxable accounts, or should one use ETFs?
• Clark’s Take:

  “Fidelity Zero funds are a type of mutual fund, but they are an index fund. Index funds...are not going to generate a meaningful amount of current tax each year.” (06:42)

• Conclusion: You're fine using Fidelity Zero funds in a taxable account.

Selling an Inherited House Among Siblings

(07:58)

• Scenario: Co-ownership with brother after mother’s death; complexities of selling, mortgages, and fairness.
• Clark’s Direct Advice:

  “As much as your brother wants to live in the house, the only smart way to handle this...is the house should just be sold.” (08:53)

• Reasoning: Legal requirements and fairness outweigh sentimental attachment; selling enables clear division of assets.

Bonus Windfall—Pay Off Mortgage or Car Loan?

(11:10)

• Situation: Enough bonus to pay off house ($50k at 6.125%) or car ($45k at 4.125%).
• Clark recommends:

  “Six and a quarter percent… pay off the mortgage. Be mortgage debt free. Car loans extinguish so quickly...a low priority.” (11:53)

  • Also emphasizes saving for retirement as a high priority after paying off high-interest debt.

Medical Privacy Warning: Dangers of Direct-to-Consumer Labs

(16:06)

• The 23andMe Bankruptcy Wakeup Call:
  • Information from genetic testing companies is highly valuable—especially to insurers or others who could discriminate.
  • On the impact of 23andMe’s bankruptcy:

    “...the data that 23andMe had was like handing to the insurance industry on a silver platter...” (16:14)

• Federal Law Lags HIPAA for Independent Services:
  • Privacy standards (like HIPAA) do not apply to independent labs or direct-to-consumer medical tests outside a traditional healthcare environment.
  • Most states also lack protective statutes.
• Clark’s Bold Advice:

  “If you go to an independent lab...you use a fake name. Ok, there I said it.” (18:16)

  • Avoid providing Social Security numbers or traceable information to shield your medical privacy whenever possible.

Additional Listener Questions

Gym Contract Traps

(19:18)

• Three-Year Lock-Ins:
  • Contracted gyms are structured to extract prolonged payments, with “rollover provisions” making it tough to escape.
  • Clark’s strong words:

    “Contract gyms. I despise. I despise them to my core...they are all about ripping you off.” (19:35)

  • Canceling a credit card won’t end obligations due to the terms of the contract.

Adjusting Tax Withholding after Consistent Refunds

(22:12)

• How much to adjust?

  “Reduce one or the other of your withholdings by about $1,500 a year—just pull half the money off the table.” (22:38)

  • Easier to gradually decrease your over-withholding without risking an unexpected tax bill the next year.

529 to Roth IRA Conversion Limits

(23:18)

• With $26,000 per child saved by age 13, what now?
• Clark’s guidance:
  • If kids are likely college-bound, continue funding 529s for tax-free growth and spending.
  • If not, consider reallocating future contributions to your own Roth IRA or retirement savings.

  “If college is part of the deal and it's clear ... then don't change anything. Keep contributing to the 529.” (23:58)

  • Enjoys the "good problems" of strategic saving and tax advantages.

Notable Quotes & Memorable Moments

• “I want you to think about what a bummer this is. You think, hey, I'm good. I'm done with working... and then something happens that you realize, oops, I don’t have enough money.”
  – Clark Howard (01:20)
• “Age discrimination is supposedly illegal...The laws are not enforced at all.”
  – Clark Howard (03:24)
• “You use a fake name. Ok, there I said it.”
  – Clark Howard, on protecting your privacy at independent labs (18:16)
• “Contract gyms. I despise. I despise them to my core...they are all about ripping you off.”
  – Clark Howard (19:35)
• "It's knowledge you can act on."
  – Clark, on the goal of the podcast and newsletters (25:01)

Timestamps for Important Segments

• 00:36 – Main topic: Retiring early and returning to work; pitfalls and planning advice
• 06:03 – Q&A on Fidelity Zero Funds, mutual funds vs. ETFs in taxable accounts
• 07:58 – Q&A on inherited home, dealing with sibling co-ownership
• 11:10 – Q&A on paying off mortgage vs. car loan with a bonus
• 16:06 – Medical privacy risks, the 23andMe bankruptcy, and direct labs
• 19:18 – Q&A on being trapped in a gym contract
• 22:12 – Q&A on adjusting IRS tax withholdings
• 23:18 – Q&A on 529 plan strategies and Roth IRA conversions
• 25:01 – Closing comments about the value of actionable financial advice

Summary Takeaways

Clark Howard's focus in this episode is a mix of hard truths (retirement, medical privacy, contract traps) and practical financial action (investment choices, debt prioritization, tax strategies). His signature blend of tough love, clear-eyed realism, and consumer advocacy is evident throughout.

Listeners are encouraged to:

• Plan for retirement with both optimism and caution, ensuring health coverage and savings are adequate.
• Work with fiduciary, fee-only planners for personalized advice.
• Be highly protective of personal data when using non-traditional medical services.
• Avoid financial products and contracts (like gym memberships) that lock you into long-term obligations with little recourse.
• Make informed, tax-smart choices about investments, windfalls, and college savings strategies.

Clark wraps up by inviting further questions and encouraging listeners to use his free online resources for everyday financial empowerment.