The Clark Howard Podcast – Episode Summary Title: Top SCAMS / Again With The Gift Cards
Release Date: March 26, 2025

Introduction

In this episode of The Clark Howard Podcast, host Clark Howard delves into prevalent scams affecting consumers today and shares his unyielding frustration with gift cards. Throughout the show, Clark addresses listener questions, provides actionable financial advice, and offers insights into safeguarding personal finances.

1. Understanding and Combating Current Scams

Timestamp: [01:05]

Clark Howard kicks off the discussion by emphasizing the importance of staying vigilant against evolving scams. He outlines the most prevalent scams based on recent Federal Trade Commission (FTC) data:

• Payment App Scams: Currently the largest source of scam-related financial losses. Clark warns, "Criminals really have the ability to get in your wallet," emphasizing the irreversible nature of these frauds once the money is sent.

• Investment Scams: Ranking second, these scams continue to deceive individuals seeking profitable opportunities.

• Employment Scams: With rising unemployment rates, Clark anticipates that job-related scams will become the top scam area by the end of the year. He notes, "When unemployment rises, so do the employment scams," highlighting the opportunistic nature of scammers.

• Social Media Scams: Previously the most common, these have seen a decline but remain a significant threat.

• Youth Vulnerability: Clark points out that individuals in their teens and twenties are increasingly susceptible due to their perception of virtual friendships. "Friends nowadays can be people you've never met in person," he explains, making younger individuals prime targets for prolonged scams.

Innovative Scam Detection Tools

Timestamp: [05:15]

Clark introduces a new tool developed by Google for Android users: an AI-powered scam detection feature in messaging apps. This tool analyzes message patterns to identify potential scams without recording conversations. He remarks, "Google's AI tool... alerts you to be on your guard," underscoring the collaborative efforts between tech companies and financial institutions to combat fraud.

2. Listener Questions and Expert Advice

a. Solo 401(k) for the Self-Employed

Timestamp: [06:55]

Question from Joe, Massachusetts:
"Could Clark talk about Solo 401k? What exactly is this and how much and where to set one up? I'm self-employed without employees."

Clark's Response:
Clark enthusiastically endorses Solo 401(k) plans for self-employed individuals. "I have loved solo or self employed 401ks for a long, long time," he states. He recommends reputable providers like Vanguard, Schwab, and Fidelity, highlighting the high contribution limits—up to $23,500 annually, with catch-up contributions available for those over 50. For highly profitable businesses, contributions can soar to around $70,000, allowing substantial tax sheltering. Clark advises avoiding full commission brokerages or banks due to higher administrative costs and investment expenses.

b. Auto Insurance and Liability Protection

Timestamp: [09:06]

Question from Dan, Florida:
"Should I change my child's car title and insurance to protect myself from liability claims?"

Clark's Response:
Clark clarifies that transferring the vehicle title and insurance to a child does not necessarily shield parents from liability. "If a parent provides more than 50% of the financial support to a child, in most states, the parent is still liable," he explains. Drawing from legal insights, Clark advises maintaining adequate liability coverage and considering an umbrella policy for additional protection. He recounts a case where a Florida surgeon was financially devastated by a liability claim despite state minimums, underscoring the necessity of comprehensive coverage.

c. Stacking Discounts on Gas Purchases

Timestamp: [11:50]

Listener from Missouri:
Shares personal success in stacking Walmart Plus discounts with Sam's Club MasterCard benefits to receive double discounts at gas stations, specifically Murphy gas stations.

Clark's Confirmation:
Clark verifies the effectiveness of this strategy. "If you are both a Walmart Plus and Sam's Club MasterCard cardholder, you get the double stack," he confirms. He praises listeners for taking advantage of such deals, allowing them to maximize savings at already discounted gas stations.

d. Protecting Retirement Savings While Caring for an Elderly Parent

Timestamp: [18:47]

Question from Kay, Washington:
"How can my father-in-law protect his retirement savings while caring for my mother-in-law diagnosed with Alzheimer's?"

Clark's Response:
Expressing empathy, Clark stresses the urgency of consulting an elder law attorney specialized in Medicaid planning. "Arizona is an unusually expensive state for long-term care," he notes, suggesting exploring more affordable options in neighboring states like New Mexico or Utah. He emphasizes the importance of professional legal guidance to navigate Medicaid spend-down rules without depleting essential retirement funds, ensuring financial security for caregivers.

e. Balancing Retirement Savings and Emergency Funds

Timestamp: [22:20]

Question from Andrew, Iowa:
"Is it safe to have a portion of our emergency funds invested in the stock market?"

Clark's Response:
Clark advises against investing emergency funds in volatile assets like stocks. "I would rather you put your emphasis moving forward on not putting money more in the stocks," he recommends. Instead, he suggests increasing the cash reserve to cover at least three to six months of living expenses, favoring money market funds for liquidity and safety. Clark commends Andrew and his wife for their disciplined approach but encourages prioritizing accessible savings over investment for emergencies.

3. Fun Segment: NFL Quarterbacks GOAT

Timestamp: [24:28]

Question from James, Alabama:
"Who is the greatest NFL quarterback of all time?"

Clark's Response:
Clark humorously grapples with the "Greatest of All Time" (GOAT) quarterback debate. He playfully mentions Joe Namath and Tom Brady, ultimately leaning towards Brady due to his seven Super Bowl rings and relentless work ethic. "He worked at it and now he does a good job," Clark concludes, highlighting the importance of dedication and excellence in achieving greatness.

4. Trend Alert: Americans Desire Larger TVs

Timestamp: [25:42]

Clark touches upon the growing consumer trend for larger television screens. An article cited reveals a strong preference among Americans for big-screen TVs, with 65-inch models becoming increasingly popular. He mentions that deals typically range from a couple of hundred to $300, making larger sizes more accessible. Clark also notes that ClarkDeals.com regularly features TV deals, aiding listeners in making cost-effective purchases.

5. The Great Gift Card Grievance

Timestamp: [13:45]

Clark passionately voices his disdain for gift cards, particularly in light of economic downturns causing retailer and restaurant closures. "When the economy shifts, retailers and restaurants close, and your gift cards become worthless," he laments, referencing the collapse of over 800 Joanne stores. Clark warns listeners to exercise caution when purchasing or receiving gift cards, as they can lose value unexpectedly due to business failures. He contrasts this with the reliability of cash, emphasizing its universal acceptance and stability.

Conclusion and Resources

Clark wraps up the episode by reiterating his commitment to empowering listeners with financial advice and resources. He highlights the availability of free one-on-one advice through the Clark Consumer Action Center, accessible at clark.com/cac. Additionally, he encourages listeners to subscribe to the Clark Howard Newsletter for daily insights and tips on saving more, spending less, and avoiding financial pitfalls.

Notable Quotes

• On Scams:
  "Criminals really have the ability to get in your wallet." [01:05]

• On Solo 401(k):
  "If your business is extremely profitable, you're allowed to put in money all the way up to the mid-60s where you're able to shelter it in the Solo 401K." [07:14]

• On Liability Protection:
  "If a parent provides more than 50% of the financial support to a child, in most states, the parent is still liable." [09:35]

• On Emergency Funds:
  "I would rather you put your emphasis moving forward on not putting money more in the stocks." [23:15]

• On Gift Cards:
  "Cash money is actually money—money, paper money that is good wherever you go and doesn't go out of business." [13:45]

Additional Resources

• Clark Consumer Action Center:
  clark.com/cac

• Clark Newsletter:
  Subscribe at clark.com/newsletter

• Elder Law Attorney Information:
  Clark mentioned that show notes will include links to elder law attorney resources for Arizona.

• TV Deals:
  Visit ClarkDeals.com for the latest television discounts and offers.

Stay informed, protect your finances, and make smarter decisions with Clark Howard’s expert advice. Remember, save more, spend less, avoid getting ripped off.