05.08.26 Clark Answers His Critics on Clark Stinks / Pay Off Your Mortgage or Invest?

Summary

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The Clark Howard Podcast

Episode: 05.08.26 – Clark Answers His Critics on Clark Stinks / Pay Off Your Mortgage or Invest?

Date: May 8, 2026
Host: Clark Howard

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Episode Overview

This episode is a two-parter, featuring Clark Howard’s signature “Clark Stinks” segment, where he responds to constructive listener feedback and corrects or clarifies previous advice, followed by an in-depth discussion on one of the age-old financial questions: Should you pay extra on your mortgage or invest that money? Throughout, Clark, joined by his producer Krista, takes listener questions and provides practical guidance grounded in financial wisdom.

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Key Topics & Insights

1. Clark Stinks – Listener Corrections & Additions

[00:50–13:22]

Clark and Krista read and respond to listener-submitted “Clark Stinks” messages, fostering accountability and expanding on previous advice.

Airport Lounge Misstatement

• Listener John from Michigan: Corrects Clark's previous mention of the fee for bringing a partner into Capital One Venture X lounges.
  • Quote: “You mentioned it costs $45 to bring a partner into the lounge… that's simply not true. It’s $35.” (02:00, John)
• John defends the value proposition, especially for families.
• Clark’s Take: Acknowledges the correction and compares different lounges, but emphasizes value is subjective.
  • Quote: “People have very strong feelings about the lounges. … Capital One Venture X lounges are the best that I've seen… But it's each person's opinion.” (02:57, Clark)

Dollar Store – Is It Really Cheaper?

• Listener Patrick, Virginia: Points out that dollar store unit prices can be higher than grocery chains or warehouse clubs for staples.
  • Quote: “The unit price and price per ounce is generally significantly higher than at the grocery store or warehouse clubs… It more sense to shop elsewhere.” (03:59, Patrick)
• Clark’s Response: Agrees margins are higher, but sometimes private label or select items can be good deals.

EV Ownership – More Than Just ‘Fun’

• Listener Brant, Arizona: Clarifies benefits of Electric Vehicles beyond “fun” – enumerating maintenance savings and health/environmental impact.
  • Quote: “Maintenance is significantly less expensive… There are obviously no gas fumes or oil drippings in your garage.” (05:02, Brant)
• Clark’s Response: Acknowledges additional drawbacks (higher insurance, faster tire wear), but remains bullish on EVs.
  • Quote: “You're talking to somebody who… can't even picture buying something other than a battery powered vehicle.” (05:58, Clark)

Retirement Savings By State – Missing the Details

• Listener Carl, Oregon: Questions why retirement cost estimates don’t clarify if the amounts are for singles or couples.
  • Quote: “I don't understand why this important detail is usually left out.” (06:33, Carl)
• Clark: Agrees, says most data is per capita, but articles could be clearer.
  • Notable Fact: “Oklahoma has the lowest cost of living… Hawaii… more than double the cost of living in Oklahoma.” (07:39, Clark)
• Krista: Shares that such stats typically assume a couple.

Subscription Ripoffs – Groomy Club

• Listener Matthew, Georgia: Adds that Groomy’s policies are even more restrictive than Clark initially said.
  • Quote: “Users cannot claim they were unaware of subscribing to a refill plan.” (08:39, Krista reading listener email)
• Listener Allen, Florida: Update – Discover credit card helped block unwanted charges.
• Clark: Explains how credit card companies pressure businesses with excessive chargebacks.

Financial Products for Kids – PayPal Debit Card

• Listener Derek, New Jersey: Notes the PayPal debit card as a fee-free, parent-controlled option for kids.
  • Quote: “The card is linked only to your funded PayPal balance… Best of all, it's free.” (10:49, Derek)
• Clark: Pledges to research and possibly recommend it.
  • Quote: “Perfect example of why we do Clark Stinks…” (11:08, Clark)

Maximizing Bank Account Bonuses

• Listener Pete, Massachusetts: Advises keeping accounts open at least six months and keeping good records to maximize bank bonuses.
  • Quote: “Keep very good records. I have a spreadsheet…” (11:35, Pete)
• Clark: Admits he’s “really flaky” with administrative tasks but congratulates Pete's 10-year run.
  • Quote: “My brain just doesn't work that way… my congratulations to you.” (12:07, Clark)

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2. Feature Discussion: Pay Off Your Mortgage or Invest?

[16:18–21:35]

Clark breaks down the perennial dilemma for those with surplus monthly cash: Should you prioritize mortgage prepayment or investing?

Clark’s Philosophy & Context

• Quote: “Let me set a baseline: I despise debt. I can't stand having debt. I live a debt free existence.” (16:18, Clark)
• Notes a sizable percentage of Americans now have mortgages with interest rates above 6%.

Decision Framework

• Low-Interest Mortgages (2–4%): Strongly advises not prepaying because investment returns are likely higher.
  • Quote: “If you’re in one of those ultra artificially low mortgage rates, you don’t prepay a penny… your odds are higher that you can earn more in investments.” (18:34, Clark)
• High-Interest Mortgages (6%+): Worth considering prepayment.
• Other Variables:
  • Roth accounts are “high priority” for financial security and offer tax-free growth/spending.
  • Mortgage-free by retirement is a worthy goal, but not at the expense of insufficient liquid assets.
  • Quote: “You don’t want to be mortgage debt free and not have enough money to live on in retirement.” (18:58, Clark)
• Clark’s New Tool: Announces a calculator at Clark.com to help with this decision based on personal inputs.
  • Quote: “It’s guidance, but not making the decision for you… payoff mortgage or invest calculator.” (19:50, Clark)

Other Debts First

• Recommends prioritizing lifestyle debts over mortgage for prepayment.

Congratulates Listeners Living Below Their Means

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3. Listener Q&A Highlights

[21:35–31:48]

Sealing HVAC Ductwork – Is Aero Sealing Worth It?

• Listener Mike, Ohio (21:35): Asks about aerosol-based duct sealing.
• Clark: Explains duct inefficiency is significant, but adoption of ductless systems is growing; can’t independently vouch for sealing claims—suggests seeking more info and quotes.

Setting Kids Up for Financial Success

• Listener Logan, Iowa (25:44): Asks how to help set up his soon-to-be-born daughter financially.
• Clark:
  • Recommends 529 college savings plans, but not “aggressive growth” options given market highs—prefers steady investment.
  • Stresses importance of paying off student loan debt before aggressively funding the 529.

40-Year Life Insurance – Is It Available?

• Listener Tim, Virginia (27:39): Wants a 40-year term life policy at age 43.
• Clark:
  • Advises getting a quote for 40-year “level term” but notes it’s rare; more carriers only offer up to 30 years—better to get what’s practical.
  • Explains the premiums will be much higher as you get into your 80s.
  • Restates life insurance is most important while dependents are at risk of financial hardship.

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Notable Quotes & Memorable Moments

• On Being Corrected Publicly:

  • “I should have never encouraged you to speak. You must think I’m pretty stupid.” (00:50, Clark referencing Clark Stinks segment humorously)

• On EV Adoption in the U.S.:

  • “I mean, I can’t even picture buying something other than a battery-powered vehicle. I’m just all in on it. … Only 8% of Americans drive electric vehicles.” (05:58, Clark)

• On Cost of Living:

  • “Oklahoma has the lowest cost of living now… Hawaii by far is more than double the cost of living in Oklahoma.” (07:39, Clark)

• On Bank Account Hacking:

  • “Your 10th anniversary of beating the banks at their own game… My brain just doesn’t work that way.” (12:07, Clark)

• On Mortgage Prepayment:

  • “You can’t eat your house. So building up money is… a very high priority… Very high priority in your life to build up money that you can use in your life that is tax free money.” (17:58, Clark)

• On Financial Community:

  • “Because I’m just one person… so much to know, so much to learn. … We all learn and grow together.” (31:24, Clark)

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Timestamps for Important Segments

• 00:50–13:22: Clark Stinks – Listener feedback and corrections
• 16:18–21:35: Main Topic – Pay Off Your Mortgage or Invest?
• 21:35–25:44: Listener Q&A – Home energy efficiency (duct sealing)
• 25:44–27:39: Listener Q&A – 529 plans and setting up kids for success
• 27:39–31:24: Listener Q&A – Long-term life insurance for new parents
• 31:24–31:48: Closing thoughts and expression of gratitude

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Final Thoughts

This episode typifies Clark Howard’s approachable and humble style—welcoming corrections, learning with his audience, and providing actionable financial tools and wisdom. Listeners leave more informed about travel hacks, store pricing, investing versus debt payoff, and responsible planning for children’s financial futures.

Practical next steps:

• Use Clark’s new “Pay Off Mortgage or Invest?” calculator at clark.com
• Get multiple quotes and real-world feedback for big home upgrades
• Prioritize paying off higher-cost debts before the mortgage
• Systematically approach bank bonuses and financial products for families

Empowerment Through Knowledge: As always, Clark closes by reminding listeners their financial empowerment is the goal—“Save more, spend less, and don’t let anyone ever, not ever, rip you off.”

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Transcript

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[Krista]

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[Clark Howard]

It's my pleasure to welcome you here to the Clark Howard Show. Our mission is to serve you with advice and information that empowers you to so you make better financial decisions in your life. It is the weekend. Almost. It's Friday and that means it's time for Clark Stinks and I'm excited to learn. What did I mess up on this week and also today? If you've got a little extra money, should you be using it to pay off your mortgage, pay extra towards your mortgage, or should you be investing that money for your future? I want to tell you how you make that decision. There's not an automatic right answer, but I want to give you the trend that would support making that decision one way or the other. But right now, it's time for Stinks. I should have never encouraged you to speak. You must think I'm pretty stupid.

[Krista]

You should be ashamed of yourself. Well, maybe I'm wrong. Maybe I'm wrong.

[Clark Howard]

Maybe you're right, pal.

[Krista]

All right, John in Michigan says, Clark, you and Krista dropped a stink bomb and I've got to call you out. Your take on airport lounges? Stinks. First, you mentioned it costs $45 to bring a partner into the lounge with a Capital One Venture X card. That's simply not true. It's $35. Second, these lounges typically include complimentary food and drinks split between two adults. I challenge you to find a better deal on a meal or two at an airport anywhere. I'll wait. I've got the Venture X a year ago and I'm already planning to use that benefit on our trip to Italy this year. My wife gets in with me and our daughter under two is free, so just $35. That's a travel hack, not a rip off. All that said, thanks so much for everything you do. I still remember listening to you after you came on the radio in my mom's car right after Kim Commando. I picked you up on your podcast right after graduating college. And your advice over the years has helped me save Smarter in so many ways and build the kind of financial security that makes special trips with my growing family like these.

[Clark Howard]

So the lounge thing. People have very strong feelings about the lounges. I'll say the Capital One Venture X lounges are the best that I've seen. They're better than the Chase Sapphire Reserve lounges which are better than the American Express. What are theirs called?

[Krista]

Platinum? No, Centurion.

[Clark Howard]

Centurion lounges. So you can tell I spend way too much money and in time in airports that I can review all the various lounges and as to the value of them, the worth of going in. It's each person's opinion and I hear you on the 35 bucks because of what it costs to eat almost or drink almost anything in an airport. Would you pay for one time use?

[Krista]

It would depend on how long I had to wait and if I was going to have a meal, things like that. So okay. Patrick in Virginia says Clark smells like a dirty pair of gym socks here.

[Schwab/AT&T Advertiser]

Free.

[Krista]

Just poking fun at how he says free when he talks about the newsletter Clark wrote about how going to the dollar store is a good idea. What he fails to note in that is that the unit price and price per ounce is generally significantly higher than at the grocery store or warehouse clubs. Sure it might be cheaper as a one off purchase, but if it's a staple someone needs frequently it more sense to shop elsewhere. Love listening to the podcast and reading the free newsletter, but this takes stank.

[Clark Howard]

Thank you for this. All right, so Dollar Tree has really not for you and me, good margins. Their business is amazingly what you pay for an item versus their cost is a lot more markup than you're going to have at the warehouse clubs. But they tend to be very heavily private label and a lot of their private label items are cheaper than even with the higher markup than you're going to pay for goods from other people and places. It just depends on the item.

[Krista]

Okay. Branton, Arizona says Clark, you're a great guy and I admire disposition. No stink there yet. A viewer recently posted that he wanted to know why you recommend EV over a hybrid or internal combustion engine. Your answer was because they're fun. There are a lot of other fun cars, but let's give the viewers some real answers about EVs, shedding light on the hesitation that many share on the subject I do drive an EV for transparency. Number one, maintenance is significantly less expensive and more convenient with an ev. There are obviously no gas fumes or oil drippings in your garage. Minimal maintenance after purchase. There are no tune ups, spark plugs, brake pads, et cetera. Additionally minimally scheduled service events, 50,000 mile fluid exchanges, et cetera. Charging at home is dirt cheap. PS slow charging is recommended for long battery life. If your schedule makes you need an at home supercharger, you don't understand charging or you should not go. EV and EVs are cleaner and better for our health.

[Clark Howard]

Thank you for all that. The areas that are more difficult with an ev, the negatives tend to pay more for insurance at this point and the tires tend not to last as long often with EVs. But I mean you're talking to somebody who I can't even picture buying something other than a battery powered vehicle. I'm just all in on it. And that makes me a very rare American because I think only 8% of Americans drive electric vehicles. I think is the percent Carl in

[Krista]

Oregon says regarding the article report how much you need to save in each state to retire comfortably on clark.com and many similar articles they never seem to say whether the estimates are for one person or a couple. Obviously these are two very different scenarios. I don't understand why this important detail is usually left out.

[Clark Howard]

That's an absolutely great question you ask Carl. And I guess it's just they do it per capita costs for state by state. And I should mention and I sent a message to a friend who lives in Oklahoma that Oklahoma has the lowest cost of living now of any state in the country. And my friend wrote back and he said well you say that's true. It sure doesn't feel like the cost of living is great. But it was interesting looking at state by state, what the actual cost of living is for equivalent cost. Krista, one guess what's the most expensive state in America?

[Krista]

Hawaii.

[Clark Howard]

Hawaii. By far more than double the cost of living in Oklahoma. And there are some differences in retirement, but the trends of what the cost of living is in different states is pretty clear. Where you went to college is that may be the most expensive mainland state. Massachusetts and Florida. That used to be a deal isn't a deal at all. Florida has become a relatively expensive state to live in. So it's useful when somebody's trying to think. You know, I daydream about I'd like to live wherever. I mean for me it's Hawaii and I'm such a Cheap guy. And Hawaii is so crazy expensive. So seeing these stats, yeah, you're right, we could be more precise and deal with single individuals, married couples, things like that. But it's really the whole idea of getting you to think about what it costs to live somewhere.

[Krista]

And I know Wes was asked about the statistics on how much you need for retirement, and what he said was, it's usually done for a couple. It's like it's assumed that it's a couple will need this amount for retirement. In most of those articles, Matthew and Georgia says you don't stink, but your beloved Falcons certainly do. Groomy is even worse than you stated. Looks like they don't have to honor your cancellation requests. And I love the language about Users cannot claim they were unaware of the subscription. And here's the quote. An offer to pause refill subscription plans is at our sole discretion and subject to change. All users are notified of recurring refill and subscription plans on the product pages and at the time of checkout. Therefore, users cannot claim they were unaware of subscribing to a refill plan.

[Clark Howard]

Okay, you want to explain background on that?

[Krista]

Well, that was the. It was like a razor membership program.

[Clark Howard]

Right.

[Krista]

That someone asked about them.

[Clark Howard]

Right. And they trouble they cancel. Could not figure out.

[Krista]

They said they didn't know that they had subscribed. They didn't remember saying anything about it.

[Clark Howard]

And that's not really a Clark stinks though, because what I said.

[Krista]

Well, they're adding to what you said about groomy.

[Clark Howard]

Oh, okay.

[Krista]

That's even worse than you said because

[Clark Howard]

there were a lot of. When we talked about it before, there were a lot of complaints about grooming online and I had not heard about it till we had the original complaint about it.

[Krista]

So here's another note from the original complainer, Alan. Oh, not that you're a complainer, Alan. The original author of the post Allen in Florida says, thanks Clark, for answering my Groomy Club dilemma. I wanted to let you know that Discover, my credit card company, has agreed to block them from posting any additional charges to my account. Although I suppose they could post under a different name. At least Discover was cooperative and is sympathetic to my problem. If it doesn't work, I'll cancel this account and reopen a new one. I will also follow up with the bbb.

[Clark Howard]

Yeah, so the thing about the credit card companies, when a credit card company starts getting an excessive number of chargeback requests, then they mark that company and they start holding back more money from them. Don't release that money and then they're in a position to protect their customers. This is. This is a pattern issue. And obviously, from what we've heard, what I've read, grooming is a buyer beware organization.

[Krista]

Derek in New Jersey says, clark, you only stink a little. Like fresh mulch in the spring. When callers ask about a credit card for their child, you never mention the PayPal debit card. The card is linked only to your funded PayPal balance, not your checking account. So the amount that can be charged is easily controlled. Best of all, it's free.

[Clark Howard]

Okay. I love this, Derek. And I was not familiar with it. Perfect example of why we do Clark stinks because a lot of the things geared towards kids create risk or have fees or both. And you're saying that PayPal is a perfect solution. I'm going to check it out and make sure we let people know based on what you've said here. I appreciate it so much.

[Krista]

And Pete from that fine state of expensive Massachusetts says, hey, Clark recently had a caller asking about bank account bonuses and whether they should continue to do them. Definitely worth it. But what you didn't mention is the best practice is to keep these accounts open at least six months. This makes you look like a more real customer and makes it more likely the bank will keep offering these things. Also, you do need to keep very good records. I have a spreadsheet with multiple tabs for each year as I continue to do these. And I've been doing it since 2016.

[Clark Howard]

Well, your 10th anniversary of beating the banks at their own game. I get these all the time. Okay, here's something you need to know about me. I'm really flaky, and I can't do something like one of these things where they say, we'll pay you $1,000 if you open this account and keep it open this long. And then remembering how long and that I got to close it and all that, I'm just. I mean, my brain just doesn't work that way. So the fact that you've been able to be successful taking advantage of these bank bonus offers for 10 years is just great. And so my congratulations to you. Speaking of banking, I want to talk about mortgages. When is it a good idea to prepay on a mortgage, and when shouldn't you prepay on a mortgage? And it's going to sound like I'm going to give you a red light, green light. What I'm really going to do is it's going to be kind of like a scale this case more and more. You should prepay this one more and more less you should prepay. That's straight ahead.

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[Clark Howard]

My goodness. At a time that so many Americans are drowning with debts just trying to survive them and survive paying monthly bills, there are other Americans that are fortunate enough to have extra funds each month and trying to figure out the right priority with them. So let me set a baseline for you. I despise debt. I can't stand having debt. I live a debt free existence. Even though I use credit cards as a payment system. Always pay them in full. Never carry debt. That's just me. So a lot of people feel like burned by having mortgage debt and they want to get rid of it. The question is when is it a more efficient thing for long term financial security for you to prepay on a mortgage so you're done with it sooner paying less interest and when are you better off? If you are somebody who's living a life where you have extra money, where you're trying to decide invest, pay down debt. Invest pay down debt. How do you decide? Well, you know, Today almost 1/4 of people are carrying a mortgage at an interest rate of 6% or above. That means there are a lot of people who either bought something with a mortgage or refi when rates were being artificially manipulated lower by the Federal Reserve and are sitting there with 2, 3, maybe 4% loans. But you start looking 6 and above, it's still roughly around a quarter of people. So you start moving above 6% and it really becomes a dilemma. Should you prepay on that mortgage or should you focus on investing? You can't eat your house. So building up money is an example. You know my obsession with Roth 401ks, Roth IRAs. The money you build grows tax free and you spend it tax free. Very high priority in your life to build up money that you can use in your life that is tax free money. At the same time, it's a very worthy goal to be mortgage debt free by the time you're anticipating retirement because it relieves financial pressure in your life. But you don't want to be mortgage debt free and not have enough money to live on in retirement. So these are not automatic answers. There are directions with these. And certainly if you're in one of those ultra artificially low mortgage rates, you don't prepay a penny because your odds are higher that you can earn more money in investments than what you're going to benefit from paying down balance on a mortgage that's at 2, 3 or maybe 4%. But if you are at a higher rate of interest, how do you decide? When is it a good decision for you to prepay? So we have developed a new tool I want you to know [e-mail] that takes you through a series of questions to decide. And again, it's a direction, not a decision. It's guidance, but not making the decision for you. But we have a new thing, payoff mortgage or invest calculator. And so we ask you a variety questions to help you make that decision, which would be a better idea. And so we'll give you an indicator and it's based on our number crunching, putting in your exact situation, which is going to be a better decision for you. So hopefully it will help you. If you are somebody running excess money in a month and you're trying to figure out highest priority, by the way, let's go to something more basic. If you have a mortgage that you're focused on getting rid of, but you're running other debts, the mortgage is not your highest priority. Normally it's going to be lifestyle debts that you have going on. It's just one piece of a puzzle. When you're living on less than what you make, you're talking about choosing the best option. But they're all good at that point because you have managed to set up your finances where you're getting control or have control because you're living on less than the money you have coming in. And good for you. And I should say for those of you who are watching our YouTube version of our podcast, Krista is appropriately wearing green since we've been talking about money so much today.

[Krista]

Yes. Okay. Mike in Ohio says, hey, Clark, we had an energy audit on our house and the auditor highly recommended aero sealing our ductwork. It's an aerosol spray that can seal the air gaps in the system. They claim it will seal 90% of air leakage and the average home regains 300 CFM after treatment. Have you heard of this? And it would be something you would recommend.

[Clark Howard]

Okay, here's what I know, Mike. Most of us lose an enormous amount of money in Cooling or heating by having ineffective ductwork in our home. And there's a lot of debate among people who do this work, how properly to get to the leaks of the ductwork. I am not willing to say that this exact way of doing it is right. There is debate about it. I mean, the big movement in heating and air conditioning is ductless work, where the systems that go into your dwelling don't involve ducks because the duct work is such a frightful, incredible waste of money. I mean, it was what looked right in the past, but now ductless is really where things are going.

[Krista]

How does that work?

[Clark Howard]

So you're going to make me get really technical.

[Krista]

No, just give me a big picture, all right? I don't need to know. Please don't get beat.

[Clark Howard]

Now I'm. Gonna. Now I'm gonna jump all the way in here.

[Krista]

Okay, because how does it get around from the system?

[Clark Howard]

What happens is with ductless is you have a unit that provides the cooling or heating, and it comes straight out of it Instead of a central unit that goes okay, around, like what they

[Krista]

have in Europe, like the Europe, Asia, the air conditioners are kind of. It's like an air conditioning system in the room.

[Clark Howard]

Okay. So it's getting better. Okay, I got something even better. Better right now. Only available in California because energy costs are so high in California, there are new systems for doing ductless heat pumps, because heat pumps reduce your energy bill by 70, 80%. And this new system is one that's been patented that instead of having to have somebody come out and try to figure out what's it going to cost to install this in your home, and that because of the technical difficulty, the prices go crazy. This new technology is one where you buy it like you'd be buying an appliance. What's it going to cost for that new washer or that new dishwasher or that new refrigerator? You can now buy these ductless heat pumps that way. And you know the price up front. And because it doesn't require so much extra labor, it's much cheaper with a much quicker payback. I mean, we're making progress on how we heat and cool really quickly, if you look at the overall scheme of things, but a little slow when you think about it, in people's own lives right now, it's only going to get better and better over the next few years. So the answer to your question, I think requires you get additional quotes and look online and see what you can find about this particular promise that's being made to you. Because saying they're going to take the inefficiency of ductwork and seal 90% of the leaks. That would be fantastic. And you heard me use a word would be I can't verify independently that that's really what's going to happen.

[Krista]

Maybe talk to some prior customers, ask for three prior customers and see what their bills did or something and see

[Clark Howard]

if there's any industry writing about doing this as a way to improve the efficiency of the Ducks.

[Krista]

Logan in Iowa says hi Clark and team. A few years ago I asked for advice on home buying. With the help of your advice. My wife and I have happily been living in our new home for almost two years now and we're expecting our first child, a daughter in a few weeks. Congratulations. My wife and make a pretty comfortable living and both contribute to our work. Sponsored 401ks along with a similar IRA where we add some extra money each month. Everything is currently in Roth.

[Clark Howard]

Yay.

[Krista]

We only have one vehicle that isn't paid off. Needed a slightly larger vehicle for the car seat and I still have some student loans but that's really it in terms of debt. What else can we do to make sure our daughter is set up for financial success from the very beginning? We've already looked at starting her 529 and plan to do the growth or aggressive growth age based savings track and thought about using our tax refund to seed the account.

[Clark Howard]

So I wouldn't do the aggressive growth 529 of age based I would do the regular stock market is at historic highs and I think it's better to do steady as you go. You've got 1819 years before your daughter enters college. And then again the beauty of the 529 now under the law if she doesn't go to college it can be moved to her own Roth IRA tax free eventually. So but 529 is the right way to do it. I want to make sure though before you put too much effort into her 529 that you've got a clear schedule to pay off your student loans. I want you rid of those is sooner rather than later and with your child being a newborn any day now, you'll have time to pay those off and still have a number of years to build up the 529 account.

[Krista]

Tim of Virginia says I'm 43 years old, married and a new father. Another new father. I'd like to get term life insurance for $2 million and for 40 years. Is that possible? What would you recommend?

[Clark Howard]

43. So you'd have congratulations on your child.

[Krista]

Lots of baby clarkies. Yeah.

[Clark Howard]

So we're talking about buying a term life insurance level term policy that would be in place till you're 83 years old. Make sure with a quote on 40 year level term, particularly since it would be going into your 80s that you get a level term quote, not one that is annual renewable term. Annual renewable term goes up in premium every year based on your actuarial risk becoming greater each year. So you want one that stays level. Now for you buying one at 43 that you would keep into your 80s, not a lot of companies do that. Most companies only risk out to 30 years to carry you into your early 70s. And that would be the way I would do this is I would get 30 year level term quotes and see what you can find. 40 year level term. And you may end up feeling like, yeah, maybe I just need this into my early 70s. The reason you wouldn't normally buy into your nearly mid 80s is odds are you're going to be retired at that point and the need for replacement of income from life insurance is not as high. And also the insurers are going to charge you so much more if they will write the 40 year because the mortality risk for them down the road is so very high as you move through your 70s into your 80s. I love that you're looking at the level term insurance. A lot of people when they do think about it is when they do have kids. But even if you don't have kids, your spouse, significant other, partner, whatever, they likely have a need for replacement of income too. Even if you don't have kids. A lot of people who are married to someone or in a long term relationship also have a need for life insurance to protect each other and have not done so. But especially people do it just like when you're talking about when you're having this wonderful episode in your life of having a new child and satem. Congratulations to you, Logan. Congratulations to you as well. And I hope you have a great weekend straight ahead. It's been our pleasure being with you this week and providing advice, information, guidance, direction and today giving me direction on today's Clark stinks. Because I'm just one person and there's so much to know, so much to learn and I can get stuck in opinions that I need to think about, you know, and maybe expand beyond where I think. So I appreciate more than, you know, you taking the time to post your questions, to post your Clark stings and that we all learn and grow together. Have this weekend just be a great one for you and know that moving forward. What we're [e-mail] clarkdeals.com in our newsletters, on social media everywhere is about you having empowerment through knowledge so you can save more, spend less, and don't let anyone ever, not ever rip you off and see you Monday.

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[Krista]

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