The Clark Howard Podcast Summary

Episode: April 21, 2025
Title: GOLD As An Asset / The Best Cell Phone Plan For You
Host: Clark Howard

Introduction

In this engaging episode of The Clark Howard Podcast, Clark delves into two primary topics: the viability of investing in gold amidst current market turmoil and navigating the saturated landscape of cell phone plans. Throughout the episode, Clark addresses listener questions, providing actionable advice to help listeners make informed financial decisions.

Section 1: GOLD As An Asset

Timestamp: [00:55] – [06:45]

Clark opens the discussion by examining the recent surge in gold prices. Historically considered a reliable hedge against economic uncertainty, gold has seen significant appreciation, prompting many to question whether it's the right time to invest.

• Gold's Recent Performance: Clark notes that while gold has been a lackluster investment for an extended period, its value has recently skyrocketed, possibly reaching inflation-adjusted highs. He observes increased consumer interest, evidenced by multiple inquiries he received at Costco about purchasing gold.

  "Anytime there becomes such a buzz and the value goes up, that's when something suddenly becomes over loved."
  — Clark Howard [02:15]

• Investment Strategy: Emphasizing moderation, Clark advises that gold and other precious metals should constitute only a small portion of an investment portfolio—ideally between 3% to 8%. He warns against overreliance on gold, highlighting its lack of intrinsic value creation compared to profit-generating investments.

• Prefer ETFs Over Physical Gold: Clark recommends investing in gold exchange-traded funds (ETFs) over physical gold for efficiency and lower costs. He explains the complications of owning physical gold, such as storage concerns and higher buy-sell spreads.

  "I love the ETFs so much more than having physical gold."
  — Clark Howard [05:30]

• Tax Considerations: Addressing tax implications, Clark points out that precious metals are subject to higher punitive taxes than regular investments. He also discusses the complexities of holding gold within an IRA, particularly concerning Required Minimum Distributions (RMDs).

  "Especially when you get older, it's really bad owning physical gold inside of an IRA because of something known as RMDs."
  — Clark Howard [04:50]

• Market Volatility: Clark cautions listeners about the potential for gold prices to decline once the current market frenzy subsides, advising against late-stage investments in the precious metal.

  "Don't be a Johnny come lately to the gold thing... you have a greater chance that the value is going to go down."
  — Clark Howard [05:20]

Section 2: Listener Questions

Timestamp: [06:45] – [31:41]

Clark transitions to addressing listener inquiries, providing tailored advice on various financial concerns.

1. Tariffs and Trade Deficits
   Caller: Noreen from Ohio
   Question: Clark's opinion on other countries imposing tariffs on the USA.
   Response: Clark expresses strong opposition to tariffs, explaining that they generally harm the imposing country's economy by reducing economic growth and increasing prices for consumers.

    > "Countries that impose tariffs... the real loser is that country that imposes the tariffs."  
    > — *Clark Howard [07:05]*
   

   He further clarifies misconceptions about trade deficits, emphasizing the importance of considering the broader current account, including services exports.

    > "This United States is a service powerhouse to the world with real meaningful exports that generate enormous income."  
    > — *Clark Howard [09:10]*
   

2. Currency Exchange Due to Dollar Decline
   Caller: Allison from Georgia
   Question: Should she exchange savings from dollars to other currencies like the Euro or Pound?
   Response: Clark advises against attempting to time the Forex market, highlighting its complexity for individual investors. He suggests maintaining a diversified investment portfolio, including overseas investments, to mitigate currency risks.

    > "It's a pretty difficult game for an everyday consumer or investor to play."  
    > — *Clark Howard [10:25]*
   

3. Starting a Business Amid Economic Uncertainty
   Caller: Viv from Florida
   Question: Is it risky to start a new business now, considering potential economic downturns?
   Response: Clark encourages entrepreneurial spirit, noting that economic pessimism can present unique opportunities. He advises ensuring sufficient financial cushions to cover initial business losses and emphasizes the low likelihood of an impending depression.

    > "There's never the perfect moment to be out there... if your overall finances feel good enough to do this at this time, go for it."  
    > — *Clark Howard [13:39]*
   

4. ACH vs. Credit Card Payments for Discounts
   Caller: Frederick from Missouri
   Question: Is it safe to allow his cell phone company to draft his bank account via ACH to receive discounts?
   Response: Clark explains the industry's shift from credit card payments to ACH due to high processing fees. He recommends setting up a separate bank account exclusively for ACH transactions to enhance security and monitor withdrawals.

    > "Set up a separate account where you put money in there for various ACHs... it makes it easy for you to monitor what ACHs are coming out."  
    > — *Clark Howard [25:27]*
   

5. Charles Schwab Checking Account and International Benefits
   Caller: Sean from Alaska
   Question: Is the Charles Schwab checking account still beneficial for international travel, and why isn't it listed among top accounts?
   Response: Clark acknowledges the account's strengths, such as no foreign transaction fees and ATM reimbursements. However, he notes that it wasn't listed in top checking accounts due to its lower interest rates compared to competitors like Fidelity.

    > "Fidelity pays, at least at this moment, a much higher interest rate on the funds in the checking account than Schwab does."  
    > — *Clark Howard [27:17]*
   

6. Using HSA Funds with Credit Cards for Rewards
   Caller: Shannon from Georgia
   Question: Is she missing anything by paying medical bills with a rewards credit card and reimbursing her HSA?
   Response: Clark praises Shannon's strategy of maximizing both HSA benefits and credit card rewards. He adds that the optimal approach is to invest HSA funds long-term to benefit from tax-free growth, advising against unnecessary withdrawals.

    > "The best thing to do with an HSA is not use it... you have it invested where it grows through the years, tax free."  
    > — *Clark Howard [29:17]*
   

Section 3: The Best Cell Phone Plan For You

Timestamp: [18:48] – [31:41]

Clark shifts focus to the saturated cell phone market, critiquing the three major carriers—AT&T, Verizon, and T-Mobile—for their aggressive rate hikes and defensive advertising tactics.

• Carrier Rate Increases: He highlights how major carriers have raised rates, eliminated discounts, and made service changes, causing consumer frustration.

  "Verizon so realizes they overplayed their hand... just kidding, we're raising your rates."
  — Clark Howard [24:00]

• Alternative Options: Clark encourages listeners to explore alternatives beyond the big three, including discount brands owned by these carriers and independent service providers that offer competitive rates.

  "You have more alternatives than ever to kick them to the curb."
  — Clark Howard [20:10]

• Discount Brands: He points out specific discount brands like Visible by Verizon, which offers comparable services at half the price of Verizon's standard plans.

  "Visible by Verizon... is half of what the same cell phone plan is from Verizon."
  — Clark Howard [22:30]

• Cable Companies Entering Wireless Market: Clark explains how cable companies leverage their existing infrastructure to offer affordable cell phone services, often bundling them with internet plans for added savings.

  "Cable companies can offer it so cheap... they provide cell phone service to people around them."
  — Clark Howard [23:15]

• Tool for Finding the Best Plan: He promotes his Phone Plan Finder tool available at clark.com/phone-plan-finder, designed to help listeners identify the most cost-effective cell phone plans tailored to their specific needs.

  "You have a tool I'm really proud of... find your alternatives that can save you money."
  — Clark Howard [24:30]

• Positive Note on Verizon's International Service: Despite his criticisms, Clark acknowledges Verizon's enhanced international service offerings, positioning it as a strong option for frequent international travelers alongside competitors like Google Fi.

  "Verizon... has significantly improved international service included in the plan at no additional cost."
  — Clark Howard [24:55]

Conclusion

Clark Howard effectively navigates complex financial topics, offering balanced perspectives on gold investments and practical solutions for selecting affordable cell phone plans. By addressing listener questions with clarity and actionable advice, Clark empowers his audience to make informed financial decisions amidst economic uncertainties.

Visit clark.com to submit your questions and explore more resources to enhance your financial well-being.