The Clark Howard Podcast – Episode Summary

Episode Title: 08.27.25 – Investing Overseas / Revised Strategy For Shopping Airfares
Date: August 27, 2025
Host: Clark Howard

Overview

In this episode, Clark Howard addresses two major topics: the importance of international diversification for investors and updates on the changing strategies needed to find the best airfares in an evolving travel market. Additionally, the episode features Clark’s practical consumer advice in response to listener questions, covering banking, car purchases, Amazon payment settings, river cruises, virtual cards, and business credit cards. Through the lens of his mission—"save more, spend less"—Clark offers actionable tips and consumer empowerment.

Key Discussion Points & Insights

1. Why Invest Overseas?

[00:53 – 04:54]

• Clark advises listeners not to be “over-patriotic” with their investments and to ensure a meaningful portion is allocated to overseas markets for better diversification.
• The U.S. is only ~5.5% of the world’s population and just over 20% of global economic activity, but most Americans invest primarily domestically.
• Last 15 years: U.S. markets outperformed, but that's historically unusual and U.S. stocks are now highly valued compared to international counterparts.
• Benefits of investing internationally:
  • Exposure to faster-growing economies.
  • Diversifies against a falling dollar.
  • Reduces overall portfolio risk.
  • Potential for greater long-term returns.
• You don't need to open overseas accounts; use international mutual funds or ETFs in your existing accounts.

“It does not make you unpatriotic to invest outside the United States... It protects you, like now with the dollar having fallen a lot in value... having money around the globe... is part of lowering the risk of your portfolio.”
— Clark Howard [03:20]

2. Listener Q&A: Banking, Minivans, Amazon Payment Risks

[04:54 – 12:16]

Banking: Credit Unions vs. Online Banks

[04:54 – 06:09]

• Credit Unions (e.g., Navy Federal): Offer in-person service and often better loan deals.
• Online Banks (e.g., Ally): Great if you don’t need branches.
• Choose based on your need for physical access and loan options.

Minivan Purchase: Used vs. Hybrid

[06:09 – 07:52]

• Low annual mileage (4-5k miles): Fuel savings from a hybrid are less significant.
• Best value: Buy a well-inspected used gas van rather than a new hybrid.

Amazon’s ‘Backup Payment Method’ Risk

[07:52 – 11:00]

• Listener recounts Amazon charging an alternate stored card without consent after primary card declined — potentially problematic for users with multiple cards for business and personal use.
• How to disable backup payment:
  1. Go to Amazon “Wallet”
  2. Under Payments, click Settings
  3. Disable “Backup payment method”
• Clark’s advice: Only store credit cards online when necessary due to fraud risk and monitor automatic backup settings.

“I’m shocked... that Amazon would have a decline on something... and then they’d run it anyway on just go down your list of cards.”
— Clark Howard [09:24]

3. Shopping for Airfare: New Pricing Tactics

[14:22 – 17:48]

• Old approach: Buy two one-way tickets, often saving money by mixing airlines.
• Now: Airlines (esp. Delta) have caught on. Half the time, round-trip is now cheaper; sometimes one-way tickets cost more.
• Recommendation: Always check and compare both round-trip and one-way pricing for your flights.

  "The airlines are on to me... half the time now airlines are quoting higher fares when you shop one way than you do round trips. So it’s now a 50/50 thing..."
  — Clark Howard [14:28]

• Brand loyalty costs money; be a free agent when booking airfare.

4. Listener Q&A: River Cruises, Virtual Cards, Business Credit Cards

[17:52 – End (~23:05)]

River Cruises in Europe

[17:52 – 21:21]

• Polarized reviews: Experiences with river cruise lines can vary dramatically. Read reviews extensively to match your expectations.
• Use an experienced cruise agent for personalized guidance—better than what Costco Travel can provide, though Costco often offers the best price and rebates.
• Costco Travel benefits: Rebates commission via shop cards, possible extra 5% discount for Executive members using their Citi Visa.

Virtual Cards & Online Safety

[21:21 – 22:05]

• Virtual (one-time use) cards: Highly recommended for online purchases. Prevents real credit card number theft.
• Tap to Pay: Also secure; tokenizes card info for each transaction.

“Paying with a one time use card number is the only way to go online...”
— Clark Howard [21:32]

Business Credit Card Selection

[22:10 – End]

• High annual fee cards (e.g., Chase Sapphire Reserve for Business): Only worth it if heavy usage and travel justifies the rewards and sign-up bonuses.
• Low-volume spenders: Use no-annual-fee cash-back cards instead.

Memorable Quotes & Timestamps

• “It does not make you unpatriotic to invest outside the United States... It protects you... is part of lowering the risk of your portfolio.”
  — Clark Howard [03:20]

• “I’m shocked... that Amazon would have a decline on something... and then they’d run it anyway on just go down your list of cards.”
  — Clark Howard [09:24]

• "The airlines are on to me... half the time now airlines are quoting higher fares when you shop one way than you do round trips...”
  — Clark Howard [14:28]

• “Paying with a one time use card number is the only way to go online...”
  — Clark Howard [21:32]

Timestamps for Important Segments

• [00:53] – Investing overseas: why and how to allocate globally
• [04:54] – Q&A: Credit unions vs. online banks
• [06:09] – Q&A: Should you buy a used or new hybrid minivan?
• [07:52] – Q&A: Amazon’s backup payment method risk and how to disable it
• [14:22] – Airfare: Why shopping one-way tickets isn’t always cheaper now; how to adapt your strategy
• [17:52] – Q&A: How to shop for and save on river cruises
• [21:21] – Q&A: Virtual cards for online shopping safety
• [22:10] – Q&A: Business credit cards—when high annual fees are (and aren’t) worth it

Summary

This episode of The Clark Howard Podcast delivers Clark’s latest insights into portfolio diversification and current travel industry tactics, while responding to a diverse set of listener financial dilemmas. His trademark approach: empower consumers with actionable, research-backed recommendations that help listeners save, avoid pitfalls, and make smarter choices. Whether you’re investing, booking a flight or hotel, buying a car, or choosing financial products, Clark’s advice in this episode is both timely and timeless.