03.28.25 Clark Answers His Critics on Clark Stinks / Recession: Potential & Preparation

Summary

The Clark Howard Podcast – Episode Summary Episode Title: Clark Answers His Critics on Clark Stinks / Recession: Potential & Preparation
Release Date: March 28, 2025
Host: Clark Howard

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1. Addressing Criticism: "Clark Stinks" Segment

In this episode, Clark Howard confronts various criticisms from listeners, collectively referred to as the "Clark Stinks" segment. The discussions highlight differing opinions on topics Clark has previously addressed, showcasing the diverse perspectives of his audience.

• Daylight Savings Time Debate:

  A prominent complaint revolves around Clark's stance on Daylight Savings Time (DST). One listener, Pete, vehemently opposes DST, arguing that it disrupts sleep schedules and offers no real benefits. Pete states at [02:04]:

  "Daylight savings time is extremely unhealthy and terribly disruptive to our lives. Why do we subject our cardiovascular system and our children to this farce?"

  Clark responds by acknowledging the divisiveness of the issue and shares his personal enjoyment of the extended evening hours post-DST change. He elaborates on the complexities of achieving national consensus on DST, noting potential safety concerns if DST were to be observed year-round:

  "But being able to be outside and hang out outside is just such an extreme joy... The most recent thing I saw is that we just go on the equivalent daylight saving time all year long, which would be very potentially dangerous for a lot of school kids…" ([04:08])

• Advertisements and Big Banks:

  Another listener questions the presence of big bank advertisements on Clark's podcast, expressing concern over the reliability of these institutions. At [05:44], the caller remarks:

  "Are you really relying on a big bad monster mega bank to keep the lights on?"

  Clark explains the mechanics of programmatic advertising, clarifying that such ads are dynamically inserted and not directly controlled by his team:

  "On the streaming services and more and more they're able to target the ad agencies and time buyers are able to micro target down to almost like specific neighborhoods…" ([06:14])

• Pronunciation of "Kaizen":

  A playful critique is made regarding Clark's pronunciation of the Japanese term "kaizen," which means continuous improvement. At [13:23], a listener corrects him:

  "Clark's pronunciation can certainly use some continuous improvement… The word he's looking for is kaizen dan."

  Clark humorously acknowledges the mistake and commits to improving:

  "It's so funny. I've only called it Kai son for, I don't know, 40, 50 years. Kai Zen. So you get more." ([13:35])

• Costco vs. Kroger Shopping Experiences:

  Dave, another critic, shares his contrasting shopping experiences between Costco and Kroger, arguing that Kroger offers better deals and lower prices. He states at [13:52]:

  "Why do I keep my membership? Here's the deal. Their Costco City card has great cash back… Thanks for everything else you do, but drop the Costco obsession."

  Clark defends Costco by highlighting its competitive pricing and large selection, while also acknowledging the benefits of shopping at Kroger with digital coupons:

  "Kroger's doing it because then they hope you buy the other things while you're there that are not on sale… The pricing at Costco is just phenomenal." ([15:19])

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2. Recession: Potential & Preparation

Clark delves into the looming economic concerns surrounding a potential recession, analyzing current trends and offering actionable advice for listeners to safeguard their finances.

• Economic Sentiment Across Income Levels:

  Referencing a Wall Street Journal survey, Clark notes that anxiety about the economy spans all income brackets. He observes that even higher-income individuals, who have previously enjoyed financial stability, are now apprehensive alongside those who have been struggling.

• Growth Recession vs. Full Recession:

  Clark explains the difference between a "growth recession"—where the economy grows but at a slow rate leading to layoffs—and a full-blown recession. He mentions that economists estimate a 40-60% chance of a recession, emphasizing that while a severe recession like the Great Recession is unlikely, challenging times are on the horizon.

• Stock Market Corrections:

  Highlighting the overvaluation in the stock market, Clark anticipates a correction or possibly a bear market as stock prices realign with company earnings. He warns that high stock valuations, previously priced for perfection, are now susceptible to declines as economic conditions change.

• Tariffs as an X Factor:

  Clark identifies tariffs as a significant unpredictable element that could exacerbate economic downturns. He explains that tariffs traditionally harm both the imposing and targeted economies by increasing consumer costs and stifling growth.

• Personal Financial Preparedness:

  Clark urges listeners to proactively assess and strengthen their personal finances. Key recommendations include:

  • Evaluate Big Purchases: Prioritize essential expenditures over discretionary spending.
  • Repair Personal Balance Sheets: Focus on paying down debts such as credit cards, personal loans, and home equity lines of credit.
  • Prepare for Uncertainty: Establish a rainy day fund to cushion against unexpected financial shocks.

  He uses a vivid analogy to illustrate preparedness:

  "Think about a day when you're out there and it's just beautiful. And then out of nowhere a storm rolls in… But right now the economy is sending you clear signals. This is a time for you to be prepared." ([19:04])

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3. Q&A Segment: Listener Questions and Clark’s Advice

In the latter part of the episode, Clark addresses several listener questions, providing tailored financial advice to diverse situations.

• Roth IRA for a Daughter with Chronic Illness ([25:07] – [28:44]):

  Question: Lisa from Pennsylvania inquires about opening a Roth IRA for her 20-year-old daughter with invisible chronic illnesses who earns income through TikTok but may need disability support in the future.

  Clark’s Response: Clark empathizes with Lisa's situation and discusses the potential benefits and risks of opening a Roth IRA. He acknowledges that while Roth IRAs are typically protected assets, upcoming changes to Social Security disability programs introduce uncertainty. He advises that saving for the future is prudent and that Roth IRAs generally offer better protection than regular investment accounts. Additionally, he mentions the possibility of transferring unused 529 plan funds to a Roth IRA, given current laws.

• Collecting Medical Bills in a Small Practice ([28:44] – [30:52]):

  Question: Erin from Georgia owns a small medical practice and seeks advice on effectively collecting payments from patients to sustain her business.

  Clark’s Response: Clark advises Erin to adopt strict payment policies, similar to those used by dentists, requiring upfront payments before rendering services. He emphasizes that medical bills are often deprioritized by patients, making it essential for small practices to secure payments in advance to ensure financial stability.

• Shipping Protection Charges ([30:52] – [31:40]):

  Question: Shannon from Virginia asks whether optional shipping protection charges are worthwhile or merely a tactic for companies to increase revenue.

  Clark’s Response: Clark explains that shipping protection is akin to pseudo-insurance, intended to mitigate issues like package theft and damage. He suggests alternative solutions, such as utilizing package pickup points and lockers, which shift the responsibility from consumers to retailers. Clark advocates for innovative delivery methods to enhance security and reduce the need for additional consumer-paid protections.

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Conclusion

In this episode, Clark Howard not only addresses direct criticisms from his audience but also delves into broader economic concerns, providing listeners with both reassurance and practical strategies to navigate potential financial challenges. Through the Q&A segment, he continues his mission to empower individuals with actionable financial advice tailored to their unique circumstances.

Notable Quotes:

• On Daylight Savings Time:

  "Daylight savings time is extremely unhealthy and terribly disruptive to our lives." — Pete ([02:04])

• On Economic Preparedness:

  "This is a time for you to be prepared. Be a scout, be prepared for what could come and then you'll be rewarded." — Clark Howard ([19:04])

• On Shipping Protection:

  "We need to be innovative here as well to make it better for the retailers to not get stuck with all these problems." — Clark Howard ([31:36])

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Stay Connected

For ongoing financial tips, consumer advice, and to join the conversation, visit www.clark.com/askclark. Empower yourself to save more, spend less, and achieve financial freedom with Clark Howard and Team Clark.

Transcript

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[Clark Howard]

Foreign it's my pleasure to welcome you here to the Clark Howard show where our mission is to serve you with advice and information that empowers you so you make better financial decisions in your life. It's Friday and it means you're gonna empower me with your information about where you feel I missed the boat or where I messed up and later. You probably been hearing more and more buzz about a recession. So are we going to have a recession? I'll address that later. And how do you prepare yourself for the possibility? We're going to talk that through, but right now it's time for me to go to school. The Clark Stink School never encouraged you to speak. You almost think I'm pretty stupid. You should be ashamed of yourself.

[Indeed Sponsor]

Well, maybe I'm wrong.

[Unknown Speaker 1]

May maybe I'm wrong.

[Clark Howard]

Maybe you're right pal.

[Unknown Speaker 2]

Alright, a couple about this one. Clark's Joy of Daylight Savings Time claiming we get, quote, so much more daylight just stinks. Since I can remember since I was a child, I've hated the stupid practice of messing with my sleep schedule. With a passion like no other, I will wake up too early or too late, struggling to get back to normal. As for the additional hour that is quote unquote so great. It's not so great and I'll tell you why as the change approaches. Every year I wake up and the sun is out a little bit earlier just before the change. When I get up at 6:30am the sun is up. It's light out. Finally the dark of winter is over. This lasts about a week or so and then we change the clocks and my 6.30am wake up time is now moved back to 5.30am and it is dark again. My daylight is not saved and it will take weeks before the sun catches up to this change. I'm again waking up in the dark. There's no reason to do this. There never really was. This stupidity should be abolished forever. Still love the show though. Thanks for all you and your team do Pete. And also Glenn in the uk, my friend who hates this as much as I do even though his is on a different schedule for the change. And then one other one. The only thing that smells worse than you is our local mushroom farm. Seriously, your statements championing daylight savings time are truly putrid. Daylight savings time is extremely unhealthy and terribly disruptive to our lives. Why do we subject our cardiovascular system and our children to this farce? It does not save energy, is claimed by many people. It means nothing to farmers, is claimed by the unfamiliar. I grew up in a farm community. Farmers do what needs to be done without regard to what the clock says. It does not give anyone, quote unquote an extra hour of daily as you claimed on your program. The day will have the same number of hours in daylight whether that community is on daylight saving time or not. The dirty secret is this. The government wants people to spend, not save money. This fuels our consumer and debt driven economy which in turn fills the tax coffers. People tend to spend more money during daylight hours. The government uses daylight savings time to trick people into parting with their hard earned dollars. Phil Passion about this?

[Clark Howard]

Oh, I mean always. And you know, you go back to what went on in Indiana where Indiana had fights community by community about what time their clocks would be set and it was really, really bad ugly. So for me I get so much joy because in the evening having those extra hours to go walk around and do things and all that shopping is not a priority for me. But being able to be outside and hang out outside is just such an extreme joy. But I don't know how many issues in the United States are as polarizing as how people feel about daylight time. We've debated it forever and nobody ever can come up with something that reaches national consensus. So who knows what's going to happen. The most recent thing I saw is that we just go on the equivalent daylight saving time all year long, which would be very potentially dangerous for a lot of school kids who'd be in the dark for so much of the year waiting at the school bus stop. So I don't have a perfect answer. I can just tell you that just as for each of you, it's an abomination that we do daylight saving time for me, I mean, I just am joyous when it happens. This is why this is such a divisive issue. Where are you on this? Do you want to say anything?

[Unknown Speaker 2]

No, I don't care. Whatever people can throw hate my way, I like it. Like, I like the daylight time because my dogs get an extra walk. I like being able to have light later in the day rather than earlier. That's just my selfish opinion because I don't want to get up super early and walk them. I'd rather give them an extra walk at night. I enjoy it. All right. I was just listening to your podcast and shockingly, an ad came on for one of the big banks. Are you really relying on a big bad monster mega bank to keep the lights on? Please, Clark, say it ain't so.

[Clark Howard]

Robert, I don't know about this.

[Unknown Speaker 2]

So this was on a platform where they control the ads, but this particular big bank we haven't had a lot of issues with lately. So I don't know that we would reject if it was a directly bought ad.

[Clark Howard]

Yeah. So I should explain this on websites, on podcasts, so many different things now, even now some television, interestingly enough, is done this way.

[Unknown Speaker 2]

Programmatically.

[Clark Howard]

Yeah, they call it programmatically. So these are bid placed ads. And we can do blacklists for certain kinds of things that don't air or certain categories. Categories. But outside of that, if we don't direct sell an ad, then it is what's known as a programmatic. And I don't even know that those are airing and they're dynamically inserted.

[Unknown Speaker 2]

So it's not like we would see it in advance.

[Clark Howard]

And so explain this to me. Are the ads zip code targeted with a podcast or is it the same programmatic ad that runs everywhere?

[Unknown Speaker 2]

You know what, I don't know if they can can do that with zip codes of programmatic ads. I know direct sold ads are just on the entire podcast.

[Clark Howard]

It doesn't matter because now with streaming, streaming television services that are ad supported, a lot of the ads now are crazy hyper local.

[Unknown Speaker 2]

Yeah.

[Clark Howard]

On the streaming services and more and more they're able to target the ad agencies and time buyers are able to micro target down to almost like specific neighborhoods where you're seeing different ads than a friend or relative across town.

[Unknown Speaker 2]

Yep. All right. There were some gambling ads that were showing up with the podcast and I did online gambling. I did block those.

[Clark Howard]

Goodness. I had a relative arguing with me just last night about my objection to all the promotion of Gambling right now. And he's like, how can you be so libertarian minded and not want these ads for gambling running? That's a conversation for a different time, right?

[Unknown Speaker 2]

Oh yeah. I just listened to you talking about how you go about confirming your rental car reservation after booking through Costco or another third party. You said you go to the car rental agency directly and then quote, unquote, claim your reservation. Can you explain what you mean by claim and exactly how it's done? There's no button or function on the website that says claim your reservation. I'm a little confused. And car rentals can be a little bit of a nightmare. So it'd be helpful. Lyn. Linda.

[Clark Howard]

Linda, I'm sorry that I did that. So shorthand. So each car rental agency, the major car rental agencies have a button to view, modify or cancel a reservation. Several of the companies use that exact phraseology or something where you, where you would go to modify a reservation is usually the kind of thing you're looking for. So you click on it, you put in the confirmation number, you know, from the third party booking source, like my situation with Costco where they give you the Costco confirmation, then the rental agency confirmation. I put in the rental agency confirmation, my first and last name, and then the reservation pops up. I'm able to do pre check in, so it's good to have pre check in with a car rental. And I'm usually able to not even stop at a counter and go straight to the lot, even though I book most of my car rentals through Costco Travel.

[Unknown Speaker 2]

Clark stunk more than the bucket of clams I forgot in the truck of my car. On February 3, a caller wanted advice on what to do with their timeshare that had a $2,000 monthly maintenance fee. That number may have been wrong, but the answer Clark suggested that someone could get a timeshare and even get paid to take the timeshare. Krista was politely pushing back on Clark's stinky suggestion, but he said if you get someone to pay you, at least you're going in with your eyes open. Clark, this caller was tell you about outrageous monthly fees, but you ignored that and suggested that people get into a timeshare if they get paid to take it. Mr. Howard, that is terrible advice. I think you should put a timeshare on your never, never, never, not ever list. That's from Steve.

[Clark Howard]

Steve, I despise timeshares. There are people who love having them know about all the terrible fees, know that they're generally trapped in it, but they love having them and they've worked out for them somehow. So if they can get one where they get paid to take it over and they like the place, the location, then more power to them. But timeshares stick to people like glue. I'm sorry that I made it sound confusing because I have always despised timeshares because they have the disadvantages of ownership of something or commitments of ownership without the benefit. And that's why what you said and your fury at me about it is probably correct that I was too cavalier about it. And the problem with the fees the person's paying is that it's hard to get out. That's the core problem is getting out of that timeshare. How do you do it? The reality is a lot of times you have a timeshare you can't even pay somebody to take from you.

[Unknown Speaker 2]

You said that if the bank will not accept electronic payments from your bill payer, you should pay the bill on the bank's website. You could have mentioned the alternative. Set up autopay on the bank's website for the minimum amount due to be debited on the due date. That way you will never have a late payment. If you pay the full amount before the due date, then the automatic payment gets automatically canceled. Not always true. Actually this works for Citibank and most other credit card issuers. Rick.

[Clark Howard]

Okay, so let me see if I follow what you're saying Rick. You're saying set up where you auto pay only the minimum at the credit card website. That's fine if you want to do that, but the problem is is if you normally pay your bills in full, there's so many problems with now paying credit cards or mortgage or anything like that through your own financial institutions. Bill pay service where the money just doesn't get into the account and credit it on time that it has become a better idea to pay on the website of who you owe the money to through a direct ach there than to use the bill pay service through your financial institution. Always pay your property taxes that way at your county or governmental authority website on your home where you go directly to their website and pay there. Do not pay by mailing a check. Criminals are looking for those checks. They're written usually for a larger amount of money. They wash the payee and they run off with the money and your property taxes still aren't paid.

[Unknown Speaker 2]

Clark doesn't stink, but his pronunciation can certainly use some continuous improvement. He says he loves the Japanese practice of kaizen continuous improvement, but the word he's looking for Is kaizen dan. And it is pronounced like that.

[Clark Howard]

Kaizen.

[Unknown Speaker 2]

Yes.

[Clark Howard]

It's so funny. I've only called it Kai son for, I don't know, 40, 50 years. Kai Zen. So you get more.

[Unknown Speaker 2]

You want to be Zen? Yes.

[Clark Howard]

Kai Zen. I'll try to put that in my brain.

[Unknown Speaker 2]

Clark stinks like a drawer full of stinky gym socks marinating in the sun. Clark, it's time to give up Costco. I did. I know I did price checks between Costco and grocery stores. Clark's holding his neck for everyone who's not watching. Costco is no cheaper, with very few exceptions. Meanwhile, I shop at dreaded Kroger. Prices are good and frequently better than Costco. I also watch their digital deals and use their fuel points. Friday is four times fuel points. Guess what day I shop Friday? My wife has an F150 with a 30 plus gallon tank. I've gotten the price down to 7 cents a gallon, but frequently she pays below $1.50 a gallon. If my wife shops at Costco, my blood pressure goes up. She's a Bud buster. She wanders around and fills up her cart. When she shops at Costco, our grocery budget goes up by at least one third. I had to ban her from Costco. Yeah, I banned her. So why do I keep my membership? Here's the deal. Their Costco City card has great cash back. 4% on gas, 3% on restaurants and travel. Even after membership fees, I net over $700 a year. Also, there are no international fees, so it's great for travel. Before you ask, no, I don't get gas at Costco. Despite the extra 1% cash back, Costco gas is a mess. It takes forever because the lines are horrible. And once you're in line, there is no way out. No escape. Thanks for everything else you do, but drop the Costco obsession. Dave.

[Clark Howard]

Dave. I am also a Kroger shopper. I use the Kroger digital coupons because Kroger is a high, low retailer. So you know my obsession with Coke Zero and Pepsi Zero. So Kroger puts them on sale a lot and they're much, much cheaper there than they are at Costco. There are a number of items that if you just buy the Kroger items with digital coupons, you're getting an incredible deal. Kroger's doing it because then they hope you buy the other things while you're there that are not on sale, which is why they're called a high, low retailer. So I love Costco. Their markups are so low. Lowest in retail. And it is true. Look how big the shopping carts are. I mean, those are oversized shopping carts. They live on people buying impulse items, filling up those huge shopping carts, or if you're from a part of the country, they're called buggies. Filling up the huge buggy and buying all that stuff that later, on reflection, oh, we didn't really need it, or food that goes bad, you throw out. I got it. But the pricing at Costco is just phenomenal. So I defended Costco. But you know what's funny is because recently I talked about how Sam's has higher customer satisfaction scores than Costco. I've had so many people come up to me and say, how could you say that? How could you betray Costco? The reality is retail. What makes it great is it so competitive. And people are always trying to improve in retail because if they don't and they don't adapt, they fail to survive. And so Costco, I'm looking at you. When are you going to come up with electronic checkout like Sam's uses, where you just automatically check out and walk out the door? Challenge is now in your court. Oh, and by the way, thank you for all your Clark stings. They're so varied every week. I love it because like any human being, I develop my narrow blinders. And having someone share with me things that or perspectives that I have ignored or didn't see or just looked right past is so helpful to me and to the advice I give moving forward. Coming up ahead, I want to talk about the possible recession in the United States coming and what you need to know about that.

[Unknown Speaker 1]

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[Clark Howard]

So more and more angst in people about the economy. Interesting thing in the Wall Street Journal recently was a survey showing that the angst about the Economy is striking all income levels. Now, let's face facts. People at the higher end of the income in the United States, people earning a lot more money than average, they've been having really great times, but they're kind of freaked right now, which only means they've joined a lot of people at the lower end of the income scale who've been struggling for a good while where inflation was devastating and left them without enough money to pay monthly bills. The airlines that depend so heavily on wealthier people and on companies spending money on travel, their stocks have gone into a deep dive. Because what's one of the things you can cut out right away? Discretionary travel. So now economists see the chance of a recession somewhere, depending on who you believe, somewhere between 40 to 60%. Now, just because there's a chance of a recession doesn't mean we're going to have one. But I would say the odds are much higher that we're going to have something that is referred to as shorthand in economics is a growth recession. A growth recession is when the economy continues to grow, but at a very slow rate. But it's slow enough that there are more layoffs that people experience and getting a new job becomes more troublesome. There are people who believe we already have those conditions in the employment market of what is referred to as a growth recession. But we could have a recession. It is normal to have a recession. It is normal for the stock market to have periods of extreme exuberance followed by a lot of pessimism, which is what we've got right now going into a correction. Maybe we could have a bear market, which is basically double the loss of a correction, 20% down. Stock market's been way, way, way high priced. You look at the value of shares versus the earnings that companies have, and the values are out of hand. So they were priced for true perfection. And right now, things are like, well, yeah, things don't look as great. So those stock values that were in the stratosphere come more back towards Earth. So, yeah, it's going to be a tougher time. Are we going to have anything brutal like the Great Recession or anything like that? Not likely. The only X factor is what tariffs could do to our economy and other economies around the world. And historically, tariffs have been really ugly for economies, both the economy placing them and the countries they're placed on. Because, you know, who pays for tariffs? We do, you and I, as consumers. So they're a drag on economic growth. So this could be tougher times up ahead. But I don't see a disaster up ahead, but in your own life, you could already feel like you're moving into a danger zone or are in one. So what are the things I want you to think about? I want you to think long and hard about big purchases, discretionary spending, spending money on want to's instead of have to's. Now there are those of us at the lower end of the income scale that are rolling their eyes because you're only able to struggle through paying for the have to's. But a big chunk of the population have to's you're able to handle. So there's a lot of want to's. This is a time that you need to repair your personal balance sheet. If you're running credit card balances, personal loans have a home equity line of credit outstanding with money owed on it. This is when you repair those things. You pay down debt, you pay debt off. You be prepared for a rainy day. If the rainy day doesn't come, then great. You've improved your personal finances in a big way. It means that you've lowered anxiety in your life. But let's say you're living a high voltage life. You got a good paycheck and you also have pretty significant expenses. And then out of nowhere the boss says, hey, you got a minute? And you walk into a room and the HR person's there and you know, then your curtains, you're gone. And you've been living that pretty highfalutin life. If you have already put the things in place of having secure finances, having a rainy day account, being prepared, because rainy days show up when you don't expect them. Think about a day when you're out there and it's just beautiful. And I think about, this happens at the beach, there'll be people on the beach and then out of nowhere a storm rolls in and people are running from the beach, getting drenched. That happens in life too. But right now the economy is sending you clear signals. This is a time for you to be prepared. Be a scout, be prepared for what could come and then you'll be rewarded. Either way, you don't hit hard times or you do, you'll be prepared.

[Unknown Speaker 2]

All right, we'll go to questions. This one came from Lisa in Pennsylvania. My 20 year old daughter has invisible chronic illnesses that keep her in bed most of the time. That is so rough.

[Clark Howard]

I don't know what does that mean? Something is hard to diagnose.

[Unknown Speaker 2]

Like you're not. You don't see it from the outside, but she has a chronic illnesses.

[Clark Howard]

Okay.

[Unknown Speaker 2]

And so she does one online class at a time. As college only lasted five days for her. She was violently ill starting the first night. She has made a decent income with 460,000 TikTok followers, but can't hold a regular job at this time. She knows it won't last forever. Most of her money has gone to comfort items and taxes, but she is a bit put away. I would like to see her start a Roth ira. But would that be a problem if she eventually needs to be on disability? We hope she won't need that. But as we get closer to retirement 59 right now we worry about her future. She also has a hefty 529B that is barely touched with her low cost community college classes. And I think they meant 529 plan. Sorry.

[Clark Howard]

Yeah.

[Unknown Speaker 2]

Any advice?

[Clark Howard]

Okay. First of all, Lisa, I feel terrible for your daughter.

[Unknown Speaker 2]

That's so rough.

[Clark Howard]

I mean that is. That is a rough way to spend your 20s is not being able to be out enjoying life, being with friends, all that, that is just really, really hard. I'm also impressed with, in spite of the pain, being bedridden so much of the time that she's been able to build as an entrepreneur her own business on Tick tock with nearly half a million people following what she's got to say. That's really impressive. So having money in a Roth and then if later ending up on disability. Roth money is generally looked at as a protected asset, but we don't know that's going to be true in the future with the changes that may come to federal disability programs through Social Security. So I don't want to say flat out, yeah, this is a great idea. You put money in the Roth, it'll be protected and everything will be great. There's a shakeout going on right now on what's going to happen with Social Security disability. I can't say for certain. The money in the Roth would continue to be a safe, protected asset too. Hard to know at this point, but normally when you think of money in a regular account and you think of money being in a retirement account, retirement accounts are generally given a meaningful layer of protection not available to money and a bank, credit union or in a regular investment account. So I think you have to make the best decision you can at the time. And it's always a good decision to have money saved for the future. And the Roth is a great way to do it. Someone who has a 401k that money is generally not accessible from a variety of things, even including a Lawsuit or things like that. But because she's self employed, the Roth would be a good idea. And that 529 money she's never going to use. If that turns out to be the case, eventually that money can go into be moved up to 35,000 under today's law can be moved over the years into a Roth ira. And best of luck to her. I hope that she can get her arms around the illnesses that are incapacitating for her for sure.

[Unknown Speaker 2]

Erin in Georgia says I own a small medical practice. It seems you give a lot of advice on not paying medical bills when getting collection calls. What should be my proper procedure to collect the amount a patient owes? What are my options to get money owed to me to run a business?

[Clark Howard]

Aaron, I love that you gave the complete opposite perspective. Here you are running your own medical practice and truth people look at medical bills as optional last priority versus most any other bill they have. And in a small medical practice is so many people are doing now they require payment in full up front for non emergency care. And you know today if you do accept insurance at your practice, you have a pretty good estimate electronically before you've done something what the patient copay is going to be and what the portion you need to collect to protect yourself. So this is a decision you have to make to protect yourself financially as a small medical practice. Are you going to require up front that people pay their bills at the time you render service? And I compare it to a dentist that when you go to a dentist they're not saying oh well you can just pay us whenever. What a dentist do, they collect that money from you up front and know they're getting paid. I mean there may be an exception somewhere but not that I've heard of. So I think, think about the way you do things with your dentist when you go see him or her. You should be doing the same thing in your practice because you're right people treat medical bills once service is rendered as somewhat optional.

[Unknown Speaker 2]

Shannon in Virginia says I frequently shop online with various companies for products like pet supplies or beauty products or supplements for myself. I've noticed as I'm checking out sometimes there's an optional charge for quote unquote shipping protection that is usually within the five to ten dollar range. It usually says recommended beside it. Is this shipping charge something that is a good idea or is it just a way for the company to get more money so she opted in too.

[Clark Howard]

Yeah, this, this is exactly the mirror image of what we were just talking about with the small medical practice is A lot of small companies. I don't know if any large ones. Have you seen it with any large ones?

[Unknown Speaker 2]

I don't want you doing large. But yeah, clothing companies that are doing.

[Clark Howard]

This and the five to ten dollars. Five or ten now. So they're saying, hey, wait a minute, we're having all these hassles with stuff being stolen by porch pirates or stuff coming damaged or ending up lost. And this is really hurting us as a business. So now we're no longer going to guarantee that delivery unless you pay this optional. It's like a pseudo insurance charge. This is something we talked about on the podcast a couple of months ago about this going on. My attitude is that's a problem for you as a consumer. What's happening elsewhere in the world is, you know how we have Amazon has the lockers and there are these lockers for scattered other retailers or you with physical stores that have online ordering and physical locations where you can pick things up. This is how people are dealing with these problems elsewhere in the world. And we need to think about doing this more and more because traditional package delivery to our door isn't working well anymore because of all the theft rings and then the other problems that can happen. So instead of paying five to ten dollars, I would have an item diverted to where I could pick it up that it's clear the item was received or not and you shift the burden approved from you to the retailer. Not every retailers come up with an arrangement like that, but it needs to happen. I mean, I think about all the financial problems with the postal service. Why aren't they doing this as many postal services do in other countries? I had mentioned a while back that my wife and I were recently in Australia. All over the place in urban areas, you see these package pickup points where you're given a box number and a code that opens your box self service. You get your item out because they've had to do something there about all the porch pirates. We need to be innovative here as well to make it better for the retailers to not get stuck with all these problems. And for you as a consumer not being left in a position that you're being told you have to ensure the package coming to you because we don't know what to do about all the theft problem. We can fix it. I want to thank you so much for joining us today on the podcast. I hope that you have an absolutely wonderful weekend. Know that everything we're about is empowering you, whether it's what we do on social media with our newsletters. With our websites clark.com and clarkdeals.com all weekend long, serving you around the clock so you can save more, spend less and avoid getting ripped off. See you on Monday.