The Clark Howard Podcast: June 27, 2025
Episode: Clark Answers His Critics on "Clark Stinks" / Savings Rate Vigilance
In this episode of The Clark Howard Podcast, host Clark Howard engages directly with his listeners' critiques in the "Clark Stinks" segment. He addresses a range of topics from extended warranties and savings bonds to medical advice and banking practices, providing detailed explanations and his professional insights to clarify misunderstandings and offer actionable advice.
1. Extended Warranties: To Insure or Not to Insure
Listener Feedback: Vernon Vern challenges Clark's longstanding skepticism toward extended warranties, arguing that modern warranties differ significantly from the problematic ones of the 70s and 80s. Vernon suggests that with the rise of cheaper products and diminishing manufacturer coverage, extended warranties might offer necessary protection for unexpected repairs.
Clark's Response [02:51]:
“The most recent data I saw found that for every dollar people spend on an extended warranty or extended service contract, they get back 9 cents in value, the average. That means you're losing 91 cents... However, for vehicles, where repairs can exceed $5,000 or even $10,000, an extended warranty might be necessary for those without sufficient emergency funds.”
Insight: Clark acknowledges the potential necessity of extended warranties for high-cost items like vehicles but maintains that, on average, they are not financially beneficial for consumers.
2. The Tax Advantages of I Bonds
Listener Feedback: Carl points out that Clark often overlooks the significant tax benefits of I Bonds, which accrue interest tax-deferred until redemption, similar to holding bonds within an IRA.
Clark's Response [04:51]:
“A great point, Carl. I want to highlight that while I Bonds have attractive tax advantages, Treasury Inflation-Protected Securities (TIPS) have more complex tax implications. It's essential to understand these differences when choosing between them.”
Insight: Clark appreciates the reminder about I Bonds' tax benefits and clarifies the distinctions between I Bonds and TIPS, emphasizing the importance of understanding tax implications in investment choices.
3. Converting Savings Bonds from Paper to Electronic
Listener Feedback: Dan raises a concern about the process of converting paper savings bonds to electronic ones via TreasuryDirect, highlighting the need to send the original paper bonds through reliable mail services to avoid conversion issues.
Clark's Response [05:58]:
“Dan, thank you. Use FedEx or UPS for sending your bonds to ensure proper tracking, as the Postal Service is currently unreliable.”
Insight: Clark advises using tracked delivery services like FedEx or UPS for converting paper savings bonds to electronic form, citing operational challenges with the Postal Service.
4. Health Advice and Medical Information Accuracy
Listener Feedback: Ted criticizes Clark for providing inaccurate health-related information, specifically regarding Dexcom's glucose monitors. He suggests that Clark relies too heavily on popular press sources rather than qualified health professionals.
Clark's Response [07:25]:
“Ted, thank you for the feedback. While I focus primarily on financial advice, I acknowledge the importance of accurate health information and plan to share updates on my personal health journey separately.”
Insight: Clark takes responsibility for the miscommunication and emphasizes his commitment to providing accurate information, particularly when discussing his own health matters.
5. Umbrella Insurance Coverage
Listener Feedback: Brian argues that Clark's advice on umbrella insurance is overly simplistic, lacking nuances regarding when to adjust coverage based on state regulations and asset protection strategies.
Clark's Response [11:05]:
“Brian, thank you. While there can be instances of overinsurance, umbrella policies are generally affordable and crucial for protecting substantial assets against liability risks. It's better to err on the side of caution.”
Insight: Clark reiterates the importance of having adequate umbrella insurance, stressing that the minimal cost is justified by the significant protection it offers against potential liabilities.
6. Capital Gains Tax on Precious Metals
Listener Feedback: Rory points out that Clark's explanation of capital gains tax on gold and silver was incomplete, noting that the 28% tax rate is only applicable to higher income brackets and that many may qualify for lower rates or zero tax.
Clark's Response [13:07]:
“Rory, thank you. It's important for listeners to understand that while precious metals can incur higher capital gains taxes, the actual rate depends on individual income levels.”
Insight: Clark acknowledges the oversight and clarifies that the capital gains tax on precious metals varies based on income, providing a more nuanced understanding of tax liabilities.
7. T-Mobile Data Plans for International Travelers
Listener Feedback: Eric corrects Clark regarding T-Mobile's international data policies, explaining that while high-speed data is limited to five gigabytes in 11 countries, unlimited data is still available at reduced speeds thereafter.
Clark's Response [14:09]:
“Eric, thank you. I’d like to add that downloading maps over Wi-Fi before traveling can help minimize data usage abroad.”
Insight: Clark appreciates the clarification and offers additional practical advice for international travelers to manage their data usage effectively.
8. HSA Tax Treatment in Certain States
Listener Feedback: An anonymous listener corrects Clark by stating that states like New Jersey and California tax HSA contributions, contrary to Clark's assertions that HSAs are completely tax-free.
Clark's Response [15:26]:
“Andrew, if that's true, thank you for informing me. That’s unfortunate.”
Insight: Clark acknowledges the discrepancy and appreciates the listener’s input, recognizing that state tax treatments of HSAs can vary and impact their tax-free status.
9. Naming Financial Firms in Advice
Listener Feedback: A listener expresses frustration over Clark's reluctance to name specific financial firms when discussing their practices, making it difficult for consumers to make informed decisions.
Clark's Response [16:30]:
“Sometimes it’s appropriate to name a company and sometimes it’s not. In this case, it was Edward Jones, a respected yet high-cost financial institution.”
Insight: Clark addresses the criticism by naming Edward Jones, explaining his rationale for discussing the firm’s costs transparently while recognizing the challenges in naming companies consistently.
10. Banking Practices and Interest Rates
Listener Feedback: Clark discusses recent misconduct by Capital One, including deceptive savings account practices, highlighting the importance of vigilance in banking choices.
Clark's Commentary [17:07 - 25:11]:
Clark elaborates on Capital One's restitution efforts after deceptive practices with their 360 Savings Account, compares them to other banks like Schwab and Fidelity, and advises listeners to actively manage their savings by choosing online banks that offer better interest rates. He warns against complacency, emphasizing that banks often offer negligible interest while imposing high credit card rates.
Quote [25:11]:
“Most banks with physical branches pay teensy tiny amounts of interest... it’s so easy now to have an online savings account with an online bank.”
Insight: Clark underscores the importance of actively managing savings accounts to secure better interest rates and avoid the pitfalls of traditional banks' low yields versus high lending rates.
11. Handling Unfulfilled Bank Bonuses
Listener Feedback: Sendu and Georgia share their disappointing experience with a regional bank’s unfulfilled $600 bonus promotion for checking and savings accounts.
Clark's Response [26:04]:
“File a complaint with consumerfinance.gov and your state banking regulators. Persist through multiple channels to pressure the bank into honoring its promotional promises.”
Insight: Clark provides a step-by-step approach for listeners to address unmet bank bonuses, emphasizing the importance of leveraging regulatory bodies to seek resolution.
12. Dealing with Unethical Developers in Housing Developments
Listener Feedback: Stephanie from Ohio describes a problematic housing development where a builder is hoarding lots, overpricing properties, and creating potential neighborhood blight.
Clark's Response [27:54 - 32:02]:
Clark advises Stephanie and her neighbors to organize collectively, form an advocacy group, engage with city officials, and utilize media outlets to highlight the issue. He emphasizes community action and leveraging political and administrative channels to address the developer’s unethical practices.
Quote [28:13]:
“Your neighborhood needs to get active... you need to organize your own separate association to advocate for the owners.”
Insight: Clark encourages collective community action and strategic engagement with local authorities and media to combat unethical development practices and protect property values.
13. Amending Tax Returns for Credits
Listener Feedback: Trevor from Colorado inquires about the benefits of filing an amended tax return (1040-X) to claim an $800 overpayment from the 2021 tax year.
Clark's Response [32:36]:
“It's worth the effort. Set up an account at irs.gov to access your records or file Form 4506 to get copies of your tax returns.”
Insight: Clark recommends pursuing the amended return to reclaim overpaid taxes, providing practical steps to obtain necessary documentation from the IRS.
14. Importance of End-of-Life Conversations
Listener Feedback: Bill from Delaware shares a heartfelt testimonial about the peace of mind his wife’s detailed end-of-life directives provided him during her sudden passing.
Clark's Response [34:02 - 34:31]:
“Bill, your story highlights the critical importance of having these conversations. It makes incredibly difficult times easier by ensuring clear instructions and wishes are documented.”
Insight: Clark emphasizes the value of initiating end-of-life discussions and documenting wishes to alleviate emotional and logistical burdens during times of loss.
Conclusion
In this episode, Clark Howard effectively addresses a diverse array of listener concerns, offering clear, data-driven advice while acknowledging areas where he can improve his communication. His responses demonstrate a commitment to consumer advocacy, financial literacy, and personal accountability, reinforcing his mission to empower listeners to make informed financial decisions.
Resources Mentioned:
Note: All timestamps correspond to the original podcast transcript provided.