Podcast Summary: The Clark Howard Podcast – July 23, 2025

Episode Title: Assignment: Save On Home Internet / A Big Bank Restart

Host: Clark Howard

Release Date: July 23, 2025

Clark Howard dives deep into practical strategies for reducing monthly expenses, particularly focusing on home internet services, while also addressing significant updates in the banking sector. Additionally, he answers listener questions on a variety of financial topics, providing insightful advice to help listeners make informed decisions.

Saving on Home Internet

[00:39]
Clark kicks off the episode by emphasizing the importance of tackling recurring monthly bills to achieve substantial savings. He identifies internet service providers (ISPs) as one of the most notoriously problematic industries in terms of customer satisfaction.

“What industry in surveys ranks the lowest of any industry surveyed or close to the lowest to depending on which survey and which year it is? Internet service providers...” [00:39]

He critiques the monopolistic tendencies of major cable companies like Charter (Spectrum) and Comcast (Xfinity), highlighting their history of hidden fees, arbitrary price hikes, and poor customer service. Clark explains how the lack of competition has allowed these companies to dictate unfavorable terms to consumers.

“The cable companies were put under a tight collar. They were not allowed to grow because of all the criminal behavior at Wells Fargo.” [14:56]

However, Clark notes a positive shift in the industry as new competitors emerge from unexpected sources, including former monopoly phone companies and aerial service providers. This increased competition is driving prices down for proactive consumers who shop around for better deals.

“Prices are going two ways at once with the cable monsters… they are going up to people who don't shop around and they're going way down for people who do shop around.” [05:55]

Clark assigns listeners the task of actively shopping for internet services, leveraging the newfound competition to secure more favorable rates and better service quality.

A Big Bank Restart: Wells Fargo’s Transformation

[16:44]
Clark revisits his long-standing criticism of Wells Fargo, a major U.S. bank previously marred by unethical practices. He acknowledges the bank’s historical misconduct, which led to stringent restrictions on its growth and operations.

“For more than a decade I've referred to Wells Fargo as being a criminal enterprise, impersonating a bank.” [16:44]

However, Clark observes a notable change in Wells Fargo's recent operations under new leadership. He concedes that the bank appears to have reformed its practices, leading to the lifting of previous restrictions and allowing it to function as a standard financial institution once again.

“Wells Fargo, for the last several years under new leadership, seems to have cleaned up its act and the collar has been lifted.” [16:44]

Despite this positive turn, Clark remains cautious, urging listeners to remain vigilant and considering alternative financial institutions like Schwab, Fidelity, Vanguard, credit unions, and local banks that often offer better deals and a more personal relationship.

“Schwab, Fidelity, Vanguard… offer much better deals to you with your money than you get from traditional banks.” [20:15]

Listener Questions and Answers

1. Home Equity Agreements vs. HELOCs

Listener: Kathy from Florida
Question: Explanation of home equity agreements and their viability compared to traditional HELOCs.

[06:26]
Clark explains that home equity agreements involve signing away a portion of the home's future value in exchange for upfront cash, without the obligation to repay the principal. This contrasts with HELOCs, which are loans that must be repaid with interest.

“They say, hey, we'll give you money. You never have to pay it back… they get a portion of the increase in value.” [07:08]

He advises that while these agreements can be a last resort for homeowners needing funds for urgent repairs or to maintain their home, they generally aren’t recommended as they lack transparency and established trustworthy providers.

2. Stock Trading and Tax Implications

Listener: Chris from London, originally from North Carolina
Question: Clarification on how frequent stock trading can lead to unexpected tax liabilities.

[09:30]
Clark breaks down the tax implications, highlighting that short-term capital gains (from holding stocks for less than a year) are taxed as ordinary income, which can be significantly higher than long-term capital gains rates.

“The tax code is set up to punish you… taxed at a punitive rate known as ordinary income tax.” [10:01]

He advises against speculative trading and encourages holding investments longer to benefit from lower tax rates.

3. Employer-Sponsored Annuities

Listener: Guillermo from Colorado
Question: Evaluation of a new retirement product offered through an employer.

[11:03]
Clark critiques the employer-offered annuity, pointing out its high fees and unfavorable tax treatment compared to traditional retirement accounts like 401(k)s and Roth IRAs.

“The expenses involved on it are typically about 12 to 15 times more expensive…” [11:56]

He advises prioritizing established retirement savings vehicles over complex and costly annuity products that primarily benefit salespeople.

4. Remote Work vs. Local Employment

Listener: Ronald from Georgia
Question: Whether to accept a salary reduction for a local in-person job to avoid potential layoffs from reverting to office-based work.

[20:58]
Clark recommends taking a pay cut to secure a local job that offers better quality of life, especially if relocating to a high-cost area would negatively impact one's financial and personal well-being.

“I would do it because… it would be a significant deterioration and quality of life for you.” [21:20]

5. Building Credit for a Teen

Listener: Daniel from Arkansas
Question: Managing credit for a 19-year-old who is about to get his own credit card.

[22:37]
Clark explains that while adding a teen as an authorized user on credit cards can help build their credit, any mismanagement could affect both the teen and the primary cardholder. He suggests that once the teen has his own credit card, removing him from the parents' accounts can isolate any potential negative impact.

“Your credit affects you and him… your difficulty with credit would also become his difficulty with credit.” [23:03]

6. Saving Strategies for Future Goals

Listener: Phil from Georgia
Question: Advice on allocating savings for a home purchase and wedding within the next few years.

[23:57]
Clark commends Phil’s disciplined saving habits and recommends maximizing contributions to a Roth IRA while continuing to save in a high-yield savings account for immediate goals like a home and wedding. He also advises evaluating the costs of current retirement accounts and optimizing investment strategies for long-term benefits.

“Max out the Roth. Keep piling money into the online savings account so you've got the money you need for a significant down payment on a home and to pay for the wedding.” [24:45]

Final Thoughts and Upcoming Content

Clark wraps up the episode by highlighting the positive changes at Wells Fargo but remains cautious about relying solely on large banks due to their historical issues. He emphasizes exploring diverse financial institutions for better rates and customer relations.

He also teases upcoming content, including a segment called "Clark Stinks," inviting listeners to provide feedback and engage with the show’s content.

Join the Conversation:
Submit your questions and feedback at www.clark.com/askclark.

Future Episode Teaser:
Next Friday, tune in for "Clark Stinks," where Clark addresses listener feedback and discusses controversial topics to empower you with knowledge for better financial decisions.

By addressing both major financial challenges and listening meticulously to audience queries, Clark Howard continues to provide actionable advice aimed at enhancing financial well-being and promoting smarter consumer habits.