08.15.25 Clark Answers His Critics on Clark Stinks / When Car Rental - Hertz

Summary

Summary of The Clark Howard Podcast Episode (August 15, 2025)

In this engaging episode of The Clark Howard Podcast, host Clark Howard delves into a variety of listener criticisms and questions, demonstrating his commitment to transparency and consumer advocacy. The episode primarily focuses on addressing listener concerns in the "Clark Stinks" segment and culminates with a critical discussion on Hertz's controversial AI-driven car rental practices. Below is a detailed overview of the episode's key points, discussions, insights, and conclusions.

1. Introduction

Clark Howard opens the episode by reiterating his mission to empower listeners with financial advice and information. He briefly mentions his websites, Clark.com and ClarkDeals.com, highlighting their continuous updates and resources available to help consumers save money and avoid rip-offs.

2. "Clark Stinks" Segment: Addressing Listener Criticisms

a. Terminology Concerns: Carol from Arizona [01:37]

Carol expresses appreciation for Clark's insights but takes issue with his use of the term "scamster" to describe scammers. She believes "scamster" sounds too benign and suggests adopting a more menacing term to accurately reflect the malicious nature of scammers.

Clark's Response [02:21]:

"Scum scammers. Pond scum. Scammers."

b. Clarification on Cruise Deal Story: Denny from Florida [02:56]

Denny critiques Clark for not providing sufficient details on how his son secured a last-minute cruise deal. He seeks clarity on whether his son scoured multiple sites or used a specific platform to find the deal.

Clark's Explanation [03:00]: Clark recounts how his son Grant and his friend Stefan, while traveling on the Amalfi Coast, found a last-minute deal on either Cruise Critic or Cruise Compete. They booked an MSC cruise for €800 each, benefiting from canceled bookings and securing a significantly discounted rate.

c. Wells Fargo Forgiveness Disagreement: Dwayne from North Carolina [04:53]

Dwayne disagrees with Clark's stance on forgiving Wells Fargo, insisting that the bank's numerous scandals warrant severe penalties, including jail time and substantial restitution.

Clark's Perspective [05:11]: Clark acknowledges the severity of Wells Fargo's misconduct, highlighting the inadequacy of federal responses. He emphasizes the detrimental impact of removing Wells Fargo entirely due to reduced competition, leaving only three major banks and harming consumers.

d. HSA Funding Frustration: Notmad from Texas [06:48]

Notmad criticizes Clark for not informing listeners about how to independently fund a Health Savings Account (HSA) through providers like Fidelity, especially when employers do not offer such options.

Clark's Encouragement [07:32]: Clark praises Notmad's proactive approach in funding an HSA at 23. He advocates for using reputable providers like Fidelity to invest HSA funds in low-cost index funds, maximizing the triple tax benefits for long-term growth.

e. Food Delivery Dispute: Tim from Missouri [09:16]

Tim is dissatisfied with Clark's response to a caller involved in a dispute over a food delivery service, feeling that Clark unfairly sided with the consumer and encouraged complaining to the Better Business Bureau (BBB).

Clark's Reflection [10:15]: Clark acknowledges his frustration with the ease of signing up for services versus the difficulty of cancellation. He emphasizes the importance of services providing straightforward termination processes to protect consumers from unwanted charges.

f. CD Laddering Advice Critique: Randall from South Carolina [10:51]

Randall contends that Clark's advice on setting up a CD ladder was incomplete. He suggests leveraging brokered CDs from providers like Schwab, Fidelity, and Vanguard to obtain the highest rates across all rungs while maintaining all funds in one place.

Clark's Agreement [12:13]: Clark agrees with Randall, acknowledging that brokerage CDs often offer higher rates and full FDIC insurance when sourced from trusted institutions. He appreciates Randall for reinforcing advice previously given on CD laddering.

g. Marriott Bonvoy Experience: Steve from Texas [12:35]

Steve shares a positive experience with Marriott's Bonvoy program, receiving a free room upgrade, contrasting Clark's general criticisms about Marriott's inconsistent honoring of loyalty benefits.

Clark's Response [13:30]: Clark expresses gladness for Steve's positive experience but notes that many loyal Marriott members have faced issues with the program's reliability. He underscores the variability in how different properties honor loyalty benefits.

h. BJ's Wholesale Selection: Daniel from New York [14:13]

Daniel critiques Clark for not fully addressing the value and quality of BJ's Wholesale's private labels, highlighting categories where BJ's excels compared to competitors like Sam's Club and Costco.

Clark's Acknowledgment [15:09]: Clark concurs, sharing his own experiences with BJ's private labels and emphasizing the importance of consistent quality. He draws parallels between BJ's Berkeley and Jensen brands and Costco's Kirkland Signature, recognizing their role in member loyalty.

i. Kirkland Signature Toilet Paper Debate: Talmadge from Georgia [15:09]

Talmadge defends Kirkland Signature Toilet Paper as the best septic-safe option, challenging Clark's previous criticisms.

Clark's Clarification [15:30]: Clark appreciates Talmadge's feedback but clarifies his stance, mentioning that while his household successfully used septic-safe toilet paper in the past, preferences vary, and personal experiences shape opinions on such products.

3. Main Discussion: Hertz's AI-Driven Car Rental Damage Scanners [16:14]

Clark shifts focus to a pressing consumer issue: Hertz's implementation of AI technology to assess and bill customers for rental car damages. He outlines the following concerns:

• Uncontrolled Damage Claims: Hertz utilizes AI scanners in busy airports to detect alleged damages, often leading to bogus or exaggerated claims. Headlines indicate instances where customers were unfairly charged for pre-existing scratches or fictitious damages detected by AI.

• Lack of Human Oversight: Unlike some European companies that manually review damage claims before notifying customers, Hertz's AI-driven approach lacks human verification, increasing the risk of erroneous charges.

• Consumer Impact: Clark shares his personal decision to cease renting from Hertz due to the potential financial risks and administrative hassles associated with disputing unjust damage claims.

• Protective Measures: He advises listeners to document the condition of rental cars through video before and after use to safeguard against false damage allegations.

Notable Quotes:

"Hertz is installing in their busiest airports and then spreading out. ... it's like they're operating like the mob." [19:00]

"You document to protect your wallet." [22:18]

4. Listener Questions and Discussions

a. Southwest Visa Priority Card Changes: Eric and Georgia [22:18]

Listeners inquire about the upcoming changes to the Southwest Visa Priority Card, including increased fees and reduced benefits.

Clark's Insight [22:47]: Clark acknowledges the devaluation of the credit card, noting that Southwest's shift towards additional fees like baggage and seat charges diminishes the card's value. He advises infrequent Southwest travelers to consider canceling the card due to the elevated annual fee and reduced benefits.

b. Hybrid Life Insurance with Long-Term Care Rider: Hunter from Florida [24:16]

Hunter seeks advice on a hybrid life insurance policy with a long-term care (LTC) rider as a strategy to secure LTC while providing a death benefit.

Clark's Analysis [25:06]: Clark explains that the long-term care insurance market has seen significant challenges, with many traditional policies becoming financially unsustainable. He highlights hybrid policies as a viable alternative, offering both LTC coverage and a death benefit if LTC is not utilized. Given Hunter's strong financial footing at age 40, Clark views this hybrid approach as a prudent way to ensure future care needs without sacrificing financial legacy.

c. Bicycle Tips and Electric Bicycles: Falcon from Nevada [27:45]

Falcon asks for Clark's recommendations on bicycle safety and his thoughts on electric bicycles (e-bikes).

Clark's Recommendations [28:21]: Clark commends Falcon for maintaining an active lifestyle with e-bikes but emphasizes the importance of safety measures, especially helmet use. He expresses concern over teenagers' safety due to high-speed e-bike usage and advocates for stylish helmets to encourage helmet adoption. Clark also praises e-bikes for extending the enjoyment and health benefits of cycling to a broader audience.

5. Conclusion

Clark wraps up the episode by reaffirming his dedication to empowering listeners with knowledge to save more, spend less, and avoid being ripped off. He encourages continued engagement through his platforms and looks forward to more insightful conversations in future episodes.

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This episode underscores Clark Howard's proactive approach in addressing listener concerns, offering nuanced perspectives on financial products, consumer rights, and safety. His candid discussions, combined with actionable advice, provide valuable insights for listeners seeking to navigate complex financial and consumer landscapes.

Transcript

[Clark Howard]

Foreign. It's great to have you here on the Clark Howard Show. You know, our mission is to serve you with advice and information that empowers you so you make better financial decisions in your life. One way we love to serve you is with our websites, clark.com and clarkdeals.com and we have new content for you every day of the week. I mean, we never sleep. We're always posting new stuff. So come and check us out. Even on the weekend, we're still posting new stuff for you. But before my weekend can begin, guess what it's here for. Clark stinks. Where I get to hear how I disappointed you or you feel. I just flat out was lame or wrong. And speaking of stinking, later, I need to tell you about why I am no longer renting rental cars from one of the major rental car companies. Even though nothing bad has happened to me yet. I gotta fill you in to protect your wallet. And that's coming later. But right now, it's time for Clark steak. I should have never encouraged you to speak. You almost think I'm pretty stupid.

[Co-host]

You should be ashamed of yourself.

[Clark Howard]

Well, maybe I'm wrong.

[Co-host]

Maybe I'm wrong.

[Clark Howard]

Maybe you're right, pal.

[Co-host]

Clark, you stink like the bottom of my garbage can in a heat wave. All right, I'm gonna change up. The way I read the cork stinks, by the way. Just a light change. I'm gonna give the person's name and state if they gave it to us when I start reading it. Okay, this one came in from Carol in Arizona. Carol says I love Clark's insights and helpful tips, but I have one minor quibble. It's Clark's use of the term scamster for scammers. To me, scamster brings to mind someone cute and harmless. Maybe it sounds too similar to hamster or youngster. In any event, I think we should call them for what they are. Scammers who take advantage of others. Maybe you and your creative team can come up with a more malevolent sounding term for them. Thank you for listening and for all your wonderful advice.

[Clark Howard]

Scum scammers. Pond scum. Scammers.

[Co-host]

We'll think about it. I love it when you say hoodlums. All right, here. This one came in from Denny in Florida. I love the show and Clark's cheery attitude, but recently, Clark was in the stink class category. Well below deck for the lack of information. Clark told a great story about his son scoring a last minute cruise deal. And however, he neglected to say how his son found the deal. Please Share. Was his son bored and spent hours scouring several sites? Or is there a go to site for deals like the one mentioned? I hope you caught up on your sleep, Clark.

[Clark Howard]

So I didn't know the answer about how Grant found the cruise, but he and his best friend Stefan were traveling together and they were in the Malfi coast. And gosh, they were surprised as teenagers to discover how much it costs during the summer to stay on the Amalfi coast. And they were like, what are we going to do? We got to get out of here. So Grant's automatic default answer is, well, we should go on a cruise. So there they are in the wee hours of the morning and they're scanning on cruise critic and cruise compete. And I don't know which one they found this. And this one cabin showed up available on a cruise, leaving 12 hours later. And so he booked it. And they paid less for a week on the cruise. I think they paid €800 each for a week on a Mediterranean cruise. And when they got to the cabin, there were five keys for the cabin and they all had the names of the people that were originally booked on that cabin that had to cancel at the last minute. And so the cruise line, if the people hadn't had insurance, they still got the money from the people who originally booked. And they got the 700 something euro from Grant and Stefan. 700 each for their week on the cruise in this big cabin with a balcony. They just got lucky.

[Co-host]

So cruise critic or cruise compete, where?

[Clark Howard]

Those are two of the sites I've talked about in the past that deals popped up. And I know he booked it. It was an MSC cruise. He booked it on the MSC website. And what's different is they're teenagers. In Europe and most of the rest of the world, you're treated as an adult at 18. They couldn't have booked the cabin in the United States because you have to be 21 to book a cabin in.

[Co-host]

The U.S. all right, Dwayne in North Carolina says Clark does not really stink, but we just have a difference of opinion on forgiving Wells Fargo. He may forgive them. I don't believe I will in this lifetime anyway. Way too many folks need to be in jail and massive restitution paid before I would even consider it.

[Clark Howard]

The Wells Fargo scandals are just unreal. And I think one person went to prison for felonies committed by hundreds, if not thousands of Wells Fargo employees. And Wells Fargo did pay billions in fines and billions in restitution. But the reality is what Wells Fargo did was inexcusable and what happened was there was a lot of talk with all the Wells Fargo stuff of the death penalty where Wells Fargo would not exist anymore. And the problem was they were the fourth of the big four banks. So then you would have only had three big banks. Anytime you do something that lessens competition, that's bad for consumers. So this was a difficult one. There was no good answer. But once the federal government, the Justice Department didn't do its job by sending huge numbers of people to prison, we were left with this very dissatisfying, unsatisfying, empty calorie kind of thing of Wells stockholders paying billions of dollars in fines and restitution, where people really deserved real punishment for all the fraud and identity theft and all the rest that went on at Wells Fargo. So that's why it was tough for me to say that I was putting them out on parole. Or did I call it parole or probation? I forgot what I said.

[Co-host]

All right, this is from Notmad. Just disappointed in Texas. Okay, Mr. Howard. I never thought I would be writing one of these. You smell like Port Galveston. You talk all the time about funding your own Roth IRA or about contributing to an employer provided hsa. Tell me why. I just learned for the first time at the ripe old age of 23 that I could fund my own HSA through one of your favorite children, Fidelity. My employers have never offered one of these accounts to me, so I just figured I had to kick rocks until I found one that did. Shame on you for hyping these up so much without letting the common public know where they can very easily access this life changing retirement saver. This comes after a lifetime of growing up with your voice in the background of long drives.

[Clark Howard]

Well, not mad. Disappointed. I am ecstatic that at 23 you're already funding an HSA. Know what they are, how they work. And as I've mentioned in the past, Fidelity is maybe the best provider I know of of HSA accounts. And if you have an HSA through some kind of terrible provider like an insurance company at your employer or a bank, even worse. No, I'm not sure which would be worse there. You can move your HSA money to Fidelity in many cases. And Fidelity, you're able to invest in low cost index funds, even the zero funds, and have the money in the HSA grow all through the years. You get the tax credit up front, it grows tax free and then you spend it tax free. The triple tax benefit of the HSA makes it the best, most important place you can save money, invest money, for your future. There is. And the funny thing is that most people don't know that the HSA money can grow all through the years tax free, not tax deferred, tax free and be spent tax free on medical expenses, most of which happen late in your life. So that's why I love HSAs. A lot of people just put money in them in the savings account, kind of part of an hsa. And you're missing the real advantage which is long term tax free growth.

[Co-host]

Tim in Missouri says your response to the lady who was trying to game food delivery stinks like laundry day after two days at the Atlanta Falcons facility. A laundry day after two days at the Atlanta Falcons facility. What happened to accountability? The lady played a game, lost and now she complains to the BBB because it's sketchy in quotes. It was the lady's fault. She is no victim here. And your biased support of it encourages others to do something similar. Be better. Clark, it was a $75 risk task that got called. She should have paid it and moved on. And we all know she didn't return the food.

[Clark Howard]

Okay, I'm sorry, I don't remember.

[Co-host]

This was someone who had signed up for one of those food delivery services where they bring you weekly like you meals that you put together. And so she had paused it inst cancelling it. She thought she had cancelled it. And so three months later it started up again and she received food that she didn't want.

[Clark Howard]

And what I did wrong was they.

[Co-host]

Said that you were on her side telling her that she should complain to the bbb.

[Clark Howard]

You know, all of us, Tim, have our blind spots and our built in reactions to things and I get so frustrated by how easy it is to sign up for stuff and how hard it is to discontinue and how confusing it is to discontinue. And so my bias automatically is, well, they made it really easy to sign up for it, but they didn't make it easy to cancel. And that's why I so much believe that the way you sign up for something, usually very simply online, should also be how you can terminate whatever service it is.

[Co-host]

Randall in South Carolina says, Clark, you don't stink. But recent advice you gave to a caller about setting up a CD ladder had a very noxious odor. While your explanation of a CD ladder was correct, you told the caller that rather than use multiple banks with the highest interest rate for each rung of the ladder, that it would be more convenient to find a bank with somewhat competitive rates for all rungs. So that the money could be all at one place. Why not tell the caller to have the best of both worlds, the absolutely highest rates for each rung of the ladder while also having all of the money in one place. How? By using one of your three favorite children. Schwab, Fidelity and Vanguard all sell brokered CDs and you can search the inventory for the highest rates nationally for each rung of the ladder. And that at the end they say thanks for all you do.

[Clark Howard]

So by the way, you're absolutely right. Brokerage CDs usually are going to offer higher rates than they do directly from financial institution. You have full FDIC insurance if you do go buy laddered CDs from one of the three my favorite children from one of my three big financial houses, Vanguard, Fidelity, Schwab. That is great advice, actually advice I've given in the past and I should have said it and you did it for me when I talked about CD laddering before.

[Co-host]

Steve in Texas says Clark is always a rainy dark cloud when talking about Bonvoy benefits. That is not my experience. In fact today I checked into the JW Marriott in Grand Rapids for five nights and and received a free room upgrade from a standard room to a one bedroom executive suite. It was a lovely surprise. So when there's availability some properties are honoring the program.

[Clark Howard]

Thank you for that and I hope you really loved your one bedroom suite and that's awesome. I assume you're extremely high Bonvoy status to have it. So where where do you hear me with the negativity about Marriott is that the hotels are really free to honor the package of benefits or not. And a lot of hotels are no longer honoring the upgrades which is a program I'm not eligible for because I book at whatever hotel's the cheapest every time I go somewhere. But people that have been super loyalists to Marriott have found that the experience has changed and most properties are not honoring the upgrade. And it's almost like news that you had this one in Grand Rapids that actually executed the Bonvoy program for high status elites like they're supposed to with the free suite upgrades.

[Co-host]

Daniel in New York says Clark, your response to the person who asked about BJ's was incomplete. Yes, BJ's has a lot of selection of name branded items. However, one reason why we have been members for many years is because of the quality and value of of the Wellesley Farms and Berkeley and Jensen private labels. We always buy olive oil, peanut butter, tissues, carrots, organic apples, eggs, canned salmon and ice cream. Only a BJ's for this reason. We're also members of Sam's. No Costco nearby but members. Mark does not have equivalent alternatives in many of these categories. And let me tell you, you kind of you struck a nerve with the BJ's thing because several people wrote in with similar reasons that you can get a deal on a membership to BJ's. Like lots of different things about why they love BJ's.

[Clark Howard]

Right? And I have been through two cycles in my life where I've been long term been a long term member of BJ's Wholesale. I don't have one near me now. And Berkeley and Jensen, they were really the pioneer of doing high quality private label goods at BJ's. And now Berkeley and Jensen is becoming for them kind of what Kirkland Signature is for Costco, like an overriding big brand name. And it's so important that the quality of the items be consistent. And sometime I got to tell a story about buying Sam's Club bath towels. The members Mark bath towels. I've got a family member who isn't happy with the quality at all, Lane says. Have you written a review yet? Have you written a review yet?

[Co-host]

All right, speaking of that, we're going to move into this one from Talmadge in Georgia. I'm a big Clark Howard fan, but you have criticized Kirkland Signature Toilet Paper one too many times. The cushy for your tushy toilet paper you prefer is not septic safe. Kirkland Signature toilet paper is the best septic safe toilet paper I have found.

[Clark Howard]

Thank you for that. I'm glad you love it. You have not.

[Co-host]

I'm not a fan.

[Clark Howard]

You're not? Okay.

[Co-host]

I don't have a septic tank.

[Clark Howard]

So yeah, we did for a long time have a septic tank and the toilet paper that we use says it's septic safe and we never had a problem with it when we were on septic. So toilet paper is a very personal.

[Co-host]

Thing and we all use it.

[Clark Howard]

Very strong opinions coming up straight ahead. I need to give you a big heads up on a really seamy thing going on in part of the car rental industry to protect your wallet.

[Co-host]

We all have moments when we could have done better. Like cutting your own hair. Yikes. Or forgetting sunscreen so now you look like a tomato.

[Clark Howard]

Ouch.

[Co-host]

Could have done better. Same goes for where you invest. Level up and invest smarter with Schwab. Get market insights and education and human.

[Clark Howard]

Help when you need it.

[Co-host]

Learn [e-mail].

[Clark Howard]

Support for this podcast and the following Message comes from America's Navy.

[Co-host]

The Navy offers new graduates, hands on training and experience in careers like computer science, aviation and medicine, plus education and sign on bonuses. Parents help your grads start their career.

[Clark Howard]

[e-mail] youm say you'll never join the Navy, that you never track storms brewing in the Atlantic and skydiving could never be part of your commute. You'd never climb Mount Fuji on a port visit or fly so fast you.

[Co-host]

Break the sound barrier.

[Clark Howard]

Joining the Navy sounds crazy. Saying never actually is. Start your [e-mail], america's Navy forged by the Sea Bundle and safe with Expedia you were made to follow your favorite band and from the front row we were made to qualify widely save you more Expedia Made to travel savings vary and subject to availability. Flight inclusive packages are at all protected. I was in an airport gate last week and woman comes up to me at the gate and says what are you going to do about hers? I'm like oh boy, what am I going to do about Hertz? And what she was talking about is something I brought to your attention. You may have heard on the podcast early in the summer about Hertz using an AI tool to determine that you damaged a rental car. Well, the Hertz thing has turned into an uncontrolled monster. These are headlines just from this week from various newspapers and travel industry things. Hertz uses controversial AI scanners to charge customers for bogus damage claims, according to the New York Post. Here's then some of the travel bugs. Hertz Renner filmed his car to prove AI was wrong but got nowhere as outrage spreads. Hertz charged $440 for this scratch. Is their AI damage scanner scamming customers? And then this article how to stop Hertz AI Rental car Scanners from beep you. Is that better?

[Co-host]

I guess.

[Clark Howard]

Hey, I didn't write the headline. So what's going on that you need to know? I no longer will book Hertz. I had a rental recently that Hertz was the cheapest of the companies I was looking at and I was like, can't do it, can't do it. I canceled the booking and booked with somebody else. So Hertz has Technology can be an assist, but technology can't be everything. So Hertz is installing in their busiest airports and then spreading out. And they're so excited because they're going to put this all over the place. These tunnels that the car goes through, scans the car and comes up with imaginary damage according to all these articles to bill you for and they do it like they're the mob. That's right, Hertz. You're doing it like the mob. Because what they do is they say, you pay us this right now and we'll give you a discount. But if you don't pay us right now at this discount rate, we're going to come after you and we're even going to raise other fees on you. Hertz does not have humans evaluate the things that the system kicks out. And one of these stories talks about how there was somebody had shot video of their vehicle. And I talked about that with somebody who had video, and they said, no, not paying any attention to it. But the greatest was where they sent somebody a timestamp and the timestamp of the damage was before their rental started. Yeah, this is the problem when you just let technology do everything with no human intervention. There's a small European renter. Well, they're a big European renter, but they're small in the United States. Sixth, that is using a similar technology. But supposedly everything before a damage claim is sent to a customer is manually reviewed by a human to make sure they don't mess up. So Hertz is using this as a money machine. And you need to know that you could easily be held responsible for damage that you didn't cause or phantom damage, because there are so many things in news articles about shadows casting that the AI is picking up as damage when there is no damage. But with any car rental company, and again, I'm not calling for a boycott of Hertz. You have to make your own decision. I'm telling you, I don't rent from Hertz anymore because the risk is too great that they're going to chew up my wallet. And even though I use a card that is primary coverage and the credit card company is going to have to deal with it, there's a lot of paperwork hassle involved, administrative hassle for you dealing with those claims. Even if it's not your money, it's your time. So I just don't bother renting from them. But with any company you rent from, it is absolutely essential that you shoot video with your phone of the rental before you leave and video when you return the vehicle so that if later they allege you caused damage, you have video evidence of what the condition was before and the condition after. You have to document. They're documenting to eat up your wallet. You document to protect your wallet. Krista.

[Co-host]

Okay, Eric and Georgia sent this one in. Hey, Clark, can you go over upcoming changes to the Southwest Visa priority card? I see the yearly fee is jumping to $229 and I think we're losing the annual $75 credit. I fly in Southwest a couple of times a year and usually have enough points for a free flight per year by just using the credit card. I don't have high volume charges per month. I upgraded to the priority card last year because of the no foreign transaction fees.

[Clark Howard]

Yeah, so you're right that Southwest devalued the credit card, devalued the points you earn on the credit card when you redeem them for free flights. And it's all part of the takeover of Southwest by Elliott that they've gone to the baggage fees, they've gone to seat fees and all this stuff. So if you're only flying Southwest a couple of times a year, then you probably are best off canning the card. There may be no benefit to you paying the 229 because the real benefit, the way, the way Southwest is pitching this, is that you are able to check one bag free every time you fly. So think 229. So you check a bag for 35 instead of paying for it. You have to fly. Is that eight times? Yeah, like seven times is pretty much break even. You also can have seat assignment for free instead of paying for it with the credit card. Again, if you're only flying Southwest two or three times a year, I'd say dump the card because before there were enough benefits with it and flying Southwest, you didn't have to pay for bags. All these things. They have done everything they can to make Southwest just like the other airlines. What a shame.

[Co-host]

I have to call you out on something funny that happened the other day.

[Clark Howard]

What's that?

[Co-host]

I was on the phone with you and I was lamenting. I think it was about a person like changing for some other changing. You were like, look what Southwest into me.

[Clark Howard]

That's right. I mean, how did Southwest do this to me after this long romance all these decades and then this big mean capitalist firm comes in and destroys the Southwest that I knew and loved. Oh, well.

[Co-host]

Hunter in Florida says, what are your thoughts on a hybrid life insurance with long term care rider as a method to ensure for long term care while also providing a death benefit to survivors if unused with the rising cost of long term care. Do you think this option is the preferred method? I'm 40 years old and have saved sufficiently for retirement.

[Clark Howard]

All right, first of all, stop right there. You're 40 and you've already saved enough for retirement. All right, I love this. That is absolutely great that you are such an aggressive saver and investor in your long term future.

[Co-host]

I am contemplating paying $15,000 each year over the next five years, which would render 800,000 in insurance and death benefit.

[Clark Howard]

Okay, so let me explain what this is. The long term care insurance market blew up. There once were, I think over a thousand insurance companies that sold the product and it turned out that it was a big money loser. And almost no one sells traditional long term care insurance anymore. And the premiums generally are not guaranteed. So as you age, you can see massive premium increases year by year. And they'll hold a gun to your head figuratively and say, all right, we're going to raise your premiums another 600% unless you agree to give up the level of benefits that you've had all these years. So what you're talking about is something where insurance actuaries have been able to completely accurately calculate what their risk factor is. And so they sell these hybrid insurance policies that are traditional whole life. Now, normally you'll hear me say, you should not buy whole life insurance. It's not an efficient way to COVID death risk to provide financial support to your family. But this is a potential exception to the rule. If you want to know that you have a pile of money you can draw on for long term care, this is a way to do it. And if you can afford to have already saved enough money for retirement by age 40 and you can afford to throw $15,000 at this each year, odds are you're in a high enough tax bracket that buying long term care insurance through a whole life policy is not a bad decision on your part and buys you that peace of mind of having that amount of potential long term care insurance down the road. Now, the reason that people like the hybrid is that if you buy a long term care insurance policy, you never need the long term care you paid premiums for something you got no benefit from. On the other hand, in this case, you never need long term care. Your loved ones, your survivors, get the benefit of the value of the life insurance.

[Co-host]

Falcon in Nevada says, I really enjoyed the interview with Clark and getting to know his origin story. I especially love the part about Clark becoming a fitness beach bum who swam and bicycled for hundreds of miles per week. As an avid bicycle commuter myself, I'm curious to know Clark's top recommendations for bicycle tips and safety as well as if he has any thoughts on electric bicycles. As someone who enjoyed riding a regular bicycle for most of my life, electric bicycles have allowed me to still get the same amount of exercise, but Travel at much faster speeds and further distances with a giant smile on my face.

[Clark Howard]

Well, first of all, electric bikes are now everywhere. And I'm going to say something that is going to be full on nerd alert. You said yourself they're going at much faster speeds and further distances, and you're still getting the exercise that you love to get. I want you to be that full nerd and wear a helmet. And while we're at it, I want to talk about teenagers. Talk to any emergency room physician and they'll tell you that teenagers are heavily getting injured by riding electric bikes at very high speeds. And, you know, our heads and pavement don't work well together. So no teenager wants to look uncool wearing a helmet. But if you're going to let them have an electric bike to ride, a helmet would be a great idea. And so that's. That's the only suggestion I have. I love that you're staying fit. And electric assist bikes have allowed people who cannot ride like they did before to continue to enjoy it, to continue to get out there. And I think that's great. And every teenager who hears this or you watch our YouTube show. I know. Roll your eyes at me about that helmet. Why do bike helmets have to look so nerd alert anyway? Maybe that's a business opportunity to come up with bike helmets that actually have style to them that people would be willing to wear, interested to wear, instead of rolling their eyes about wearing. Just a thought. And I want to thank you so much for joining us on this Friday edition of the podcast and YouTube show. And this weekend, just have the best time ever and know what we're about. Everywhere we try to serve you is to empower you with knowledge so you can save more, spend less, and avoid getting ripped off. And look forward to seeing you and you getting to hear us on Monday.