The Clark Howard Podcast – Episode Summary

Episode: Where The Jobs Are / The More Versatile 529 Plan
Date: August 20, 2025
Host: Clark Howard

Episode Overview

In this episode, Clark Howard discusses the changing landscape of the American job market, with a focus on where employment opportunities are shifting and how listeners can adapt. He also dives deep into important updates on 529 education savings plans, explaining how they’ve evolved beyond just college expenses to become a more versatile financial tool for families. The episode is complemented by Clark answering listener questions on electric vehicles, streaming subscriptions, and strategies for college savings affecting financial aid eligibility.

Key Discussion Points & Insights

1. The Job Market’s Shifting Landscape

[00:24–06:45]

• Labor Force Participation: Clark highlights that "more than 1/3 of Americans in prime working age are not working right now. Many have given up trying to find work." He explains that, while the unemployment rate appears stable at around 4%, the real health of the labor market is more nuanced.
• Economic Uncertainty: Companies are hesitant to hire because of unpredictable economic factors, such as tariffs and shifting demand.
• Opportunity in Adversity: Clark urges listeners to see challenging job markets as a time to reassess career goals, gain new skills, or even consider starting a business. He shares a story:

  "A friend of mine was working at a bank...hated every single minute...But what he loved was...managing real estate...he lost his job...went to work for a property management company and did that for the rest of his career." (Clark, 05:16)

• Geographic Trends: Job growth is currently stronger in mid-sized metros (population between 500,000 and 2.5 million), which often offer better housing affordability and quality of life than the largest metro areas.

2. Electric Vehicle (EV) Ownership – Listener Q&A

[06:45–16:45]

Leasing vs. Buying Electric Cars

• [08:21] Clark:

  "Right now there's an overwhelmingly compelling case to lease an electric vehicle before the end of September..."
  Reasons include:

  • Universal eligibility for the $7,500 federal tax credit through leases
  • Manufacturers offer highly subsidized leases due to concerns about future incentives
  • Rapid depreciation of EVs makes leasing more attractive than buying
  • Recommendation: Lease for three years, then evaluate whether to buy or turn in

EV Longevity for Long-Term Owners

• [11:30] Clark:

  "A 15 year purchase intention with an electric vehicle—that's hard for me to get my arms around...if you are a 15-year owner, I would go with a hybrid."

  • Battery technology is improving, but changes in the market happen rapidly
  • Hybrids are currently a safer bet for reliability over long periods

EVs for Renters & Charging Access

• [13:47] Clark:

  "People who rent and don't have access to handy charging...it's not a problem today that it was even a year ago because so many chargers have been installed..."

  • Infrastructure improvements have reduced barriers for renters
  • Fast chargers allow 500-mile trips with eight-minute charging stops

Future of EVs

• Clark predicts U.S. adoption will catch up to the rest of the world:

  "The technology is so superior...it's absolutely going to happen...we're not far away from the cost of manufacturing an electric vehicle being significantly cheaper than...a gas engine vehicle." (Clark, 14:37)

3. The New, Expanded 529 Education Savings Plan

[18:20–22:04]

• Historically: 529s were mostly for college savings; if funds were not used for qualified education, investors faced taxes and a 10% penalty.
• Now:
  • Eligible for a wide variety of educational expenses, not just college—including certifications, trade school, and test prep.
  • Roth IRA Conversion: Up to $35,000 of unused funds can be rolled into a beneficiary’s Roth IRA, offering lifelong tax-free growth.

  "You can take up to 35 grand of it and put it into a Roth IRA for a child...That 35,000 is going to double over and over and over...and create financial security for that child much later in life..." (Clark, 20:37)

• Clark’s Perspective: Encourages policies and tools that promote saving and investing over spending.

4. Retirement vs. College Savings and Financial Aid Impact

[22:04–26:58]

• Listener’s Dilemma: Should parents allocate excess income to retirement accounts (Roth 403B/457) to minimize assets counted in college financial aid formulas?
• Clark’s Advice:
  • "Before you make a decision...you want to see what the expense ratios are in it, the management fees and expenses you pay..." (Clark, 23:53)
  • Generally, 457 plans have lower fees than 403Bs
  • Emphasizes saving for retirement over college because, "The only person who can pay for your retirement is you." (Clark, 25:20)
  • Notes unfairness in some public sector jobs: workers can lack both pension and Social Security coverage

5. Digital Security – Two-Factor Authentication Planning

[26:58–29:54]

• Listener asks: Is it possible to have a backup SIM/eSIM for two-factor authentication after one’s death?
• Clark:
  • Most providers prevent dual SIM for the same number to deter fraud.
  • Recommends setting secondary phone numbers or emails for account recovery instead.

  "With most financial institutions now, we have two email addresses and two phone numbers so...we have 3 others we can do." (Clark, 28:45)

• Additional Protections: Assign financial power of attorney and update beneficiary designations to streamline access for survivors.

6. Streaming Service Frustrations & Consumer Protection

[29:54–35:38]

• Deleting Payment Info: Some services (like HBO Max) make it difficult to remove credit card info unless you delete the entire account—delayed, multi-step process that puts consumers at risk in data breaches.

  "This is part of the war going on...they want your credit card number so they can auto charge you and make it so difficult for you to stop the stream..." (Clark, 30:07)

• Clark’s Solution: Use one-time use or prepaid credit cards for subscriptions
• Streaming Deals: Consider annual sign-ups for discounts
• Personal Anecdote: Clark tried to quit YouTube TV, but was offered six months at the old rate; ultimately, he canceled, and his family went without live TV—proving you might not miss what you cancel.

Notable Quotes & Memorable Moments

• On Career Changes:

  "What he did instead was he went to work for a property management company and did that for the rest of his career. He found what he loved...because his bank failed." (Clark, 05:16)

• On Leasing EVs:

  "What have I said about leasing all through the years? I've said don't lease with one exception, and that is if the manufacturer is offering a special factory subsidized lease." (Clark, 09:02)

• On 529 Plan Flexibility:

  "If the money's never needed for education...you can take up to 35 grand of it and put it into a Roth IRA for a child." (Clark, 20:37)

• On Retirement vs. College Savings:

  "The only person who can pay for your retirement is you...particularly going into a Roth version of an account where the money grows tax free and it's spent tax free is really key." (Clark, 25:20)

• On Streaming Services:

  "Here's a weapon you have: one time use credit card numbers...you give them a way that you can sign up for an account, but not a way that they can keep taking your money after a period of time." (Clark, 31:43)

• On EV Future:

  "I believe that in my heart and my head completely... Right now people think they're not good, promise they're in all of our futures." (Clark, 15:17)

Important Timestamps

• [00:24] – Opening remarks & job market overview
• [06:45] – Electric vehicle Q&A begins
• [08:21] – Leasing vs. buying EVs
• [11:30] – Longevity of EVs & hybrid recommendation
• [13:47] – EV ownership for renters
• [18:20] – Expanded uses for 529 education savings plans
• [22:04] – Listener Q: Should we prioritize retirement or college savings?
• [26:58] – Digital security: two-factor authentication & legacy planning
• [29:54] – Streaming service billing frustration & consumer strategies

Resources Mentioned

• Clark.com: Consumer guides, money-saving tools, and streaming service comparison tool
• ClarkDeals.com: Hot deals and economic news
• Clark.com/askclark: Submit listener questions

Tone and Final Thoughts

Clark continues his mission to empower consumers with practical financial advice, delivered with signature wit, transparency, and real-life examples. He maintains an optimistic viewpoint, encouraging listeners to adapt with the times—whether changing careers, considering vehicle options, or navigating convoluted consumer experiences.

"Save more, spend less, and avoid getting ripped off." (Clark, 36:46)

For further details and additional Q&A, visit clark.com.