The Clark Howard Podcast – Episode Summary Episode Date: May 14, 2025 Episode Title: Saving Strategy: Series I Savings Bonds / The U.S.-China Tariff Reprieve

Introduction

In this episode of The Clark Howard Podcast, host Clark Howard delves into effective saving strategies, specifically focusing on Series I Savings Bonds, and provides an update on the latest developments concerning U.S.-China tariffs. Throughout the episode, Clark addresses listener questions, offering actionable financial advice to empower his audience to make informed decisions.

Series I Savings Bonds: Are They Still Worth Buying?

Timestamp: 01:03

Clark Howard begins by exploring the relevance and benefits of Series I Savings Bonds in the current economic climate. He explains that Series I Bonds are designed to outpace inflation, making them an attractive option for savers seeking to preserve their purchasing power.

Key Points:

• Structure of I Bonds: Clark describes the two components of I Bonds—an initial fixed rate and a variable inflation rate that adjusts every six months based on current inflation data.

  “You get paid for inflation. It’s an amount above the rate of inflation, and then every six months, the bonds recalculate what current inflation is and give you that amount in interest.” (01:45)

• Interest Rates Comparison: He highlights that while I Bonds might offer a lower immediate return compared to some Certificates of Deposit (CDs) or savings accounts, their inflation protection provides long-term value.

  “If you can put your money in a CD earning 4 point something percent or a savings account earning 4 point something percent, why would you buy a Series I savings bond at 3.98%? The reason is to lock in earning more than the rate of inflation.” (04:10)

• Flexibility and Terms: I Bonds can be held for up to 30 years, offering flexibility with minimal penalties for early redemption after five years.

  “They are so flexible and what they let you do is not get you rich, but they are a very viable, good vehicle for the savings portion of your life.” (05:00)

Listener Questions and Advice

Timestamp: 06:10 - 10:27

Following his discussion on I Bonds, Clark takes questions from listeners, addressing a variety of financial concerns.

1. Cashing in Series I Savings Bonds:

   • Caller: Arlene from California

   • Issue: Difficulty cashing in paper I Bonds due to credit unions' limitations.

   • Advice: Clark recommends converting paper bonds to electronic ones via TreasuryDirect.gov, avoiding the need to mail them.

     “There's a procedure where you can convert them from paper to paperless right on the website and then cash them out direct.” (06:36)

2. Accurate Smartwatches for Health Monitoring:

   • Caller: Susan from Kansas

   • Issue: Seeking reliable smartwatches for monitoring blood sugar and blood pressure.

   • Advice: Clark discusses recent FDA approvals, highlighting the Dexcom Stelo glucose biosensor system integrated with Aura rings for accurate glucose monitoring.

     “It's called the Dexcom Stelo glucose biosensor system. It's the first one the FDA has cleared for monitoring glucose continuously.” (08:32)

3. Vehicle Safety Concerns:

   • Caller: Amy from Georgia

   • Issue: Subaru Ascent catching fire unexpectedly.

   • Advice: Clark suggests reporting to the Center for Auto Safety and checking for recalls via the National Highway Traffic Safety Administration (NHTSA).

     “Go to autosafety.org file your story and that will help others much more than just a complaint to NHTSA.” (11:46)

The U.S.-China Tariff Reprieve: What It Means for Consumers

Timestamp: 16:01

Clark shifts focus to the geopolitical landscape, discussing the recent reprieve in tariffs imposed on goods from China and its implications for American consumers and retailers.

Key Points:

• Tariff Reduction: The U.S. and China have agreed to lower the base tariff on Chinese goods imported into the United States from 145% to 30% over a three-month window, alleviating fears of severe shortages.

  “The tariffs on goods bound for the United States have been reduced from a base of 145% to a base of 30%.” (16:30)

• Impact on Retailers and Consumers: This reduction helps replenish inventory for retailers ahead of the Christmas season, ensuring that shelves remain stocked with essential goods.

• Long-Term Outlook: Clark anticipates a broader shift towards a 10% base tariff on goods from various countries, balancing protectionism with manageable rates for both consumers and businesses.

  “A 10% tariff wall is something that we can handle as individuals, as businesses, and as a country.” (19:10)

• Economic Implications: While consumers can expect some price increases due to the tariffs, the overall impact is moderated by manufacturers and retailers absorbing portions of the costs. Additionally, there may be a positive trend of increased domestic manufacturing in the U.S. in response to the sustained tariffs.

Final Listener Questions

Timestamp: 20:41 - 27:40

Clark addresses additional listener inquiries, providing practical advice on various financial and consumer topics.

1. Car Purchase Scam Alert:

   • Caller: Christy from Georgia

   • Issue: Potential scam involving a Toyota being sold via email.

   • Advice: Clark warns against such scams, emphasizing the red flags and advising discontinuing communication.

     “Chrissy, this is an old scam. Discontinue any communication with this seller.” (21:15)

2. Roth IRA and Emergency Fund Strategy:

   • Caller: Laura from Tennessee

   • Issue: Balancing contributions to Roth IRA and HSA while maintaining an emergency fund.

   • Advice: Clark approves of Laura’s method, highlighting its effectiveness and encouraging her to continue.

     “No risk at all. It's very smart. Many people do this.” (22:35)

3. Using HSA Funds Abroad:

   • Caller: Katie from Hawaii

   • Issue: Utilizing HSA funds for healthcare in another country.

   • Advice: Clark explains the feasibility of using HSA funds internationally, with considerations for legal medications and reputable providers.

     “As long as the meds you buy have to be legal in the United States and you have proper receipts, you can do that in Mexico.” (23:34)

4. Retirement and Care Facilities:

   • Caller: Laura continues

   • Issue: Concerns about the quality of care facilities abroad.

   • Advice: Clark advises visiting potential facilities in person to ensure quality and reliability.

     “There's nothing like experiencing a facility on the ground.” (26:35)

Conclusion

Clark Howard wraps up the episode by reiterating the importance of informed financial decisions. He emphasizes empowering listeners with knowledge to save more, spend less, and avoid financial pitfalls. The episode provides valuable insights into leveraging savings bonds for inflation protection and understanding the evolving landscape of international trade tariffs, ensuring that listeners are well-equipped to navigate their personal finances effectively.

“The more you can step back and make a reasoned decision based on facts and trusted information, the better it will be for you.” (27:40)

For more information and to submit your questions, visit www.clark.com/askclark.