11.20.24 Holidays Deals With Charis! / 2025 Investment Predictions

Summary

The Clark Howard Podcast - Episode Summary Title: Holidays Deals With Karis! / 2025 Investment Predictions
Release Date: November 20, 2024

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Introduction

In the November 20, 2024 episode of The Clark Howard Podcast, host Clark Howard teams up with Karis, chief deal digger from clarkdeals.com, and guest Ryan Reynolds from Mint Mobile to explore the best holiday deals available this season. Additionally, Clark delves into his investment predictions for 2025, offering listeners valuable insights into navigating the stock market amidst fluctuating economic conditions.

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Holiday Deals with Karis and Ryan Reynolds

Current Holiday Promotions and Top Deals

Karis and Ryan Reynolds kick off the discussion by highlighting the plethora of holiday deals available across major retailers. They emphasize the significance of early and staggered sales, which have been increasingly common this year due to extended promotional periods.

• Walmart and Amazon: Ryan notes, "Amazon's going to start their official Black Friday sale this Thursday" [03:31], and mentions a "65 inch TCL Roku TV for $228" [04:23] as a standout Walmart deal, especially for Walmart Plus members. Additionally, Amazon is offering substantial discounts on electronics like Fire Sticks at "50% off."

• Best Buy and Macy's: Both retailers are participating with significant sales starting early November. Karis points out that Macy's has already begun their Black Friday sales on the 14th [03:31].

• Costco and Sam's Club: Ryan highlights Costco's ongoing deals, including an "$80 off Ring security system" [05:12], while Karis shares her personal success in purchasing an "85 inch TV for $698" at Sam's Club [05:26], underscoring the value of membership-based savings.

Electronics and Appliances

The duo discusses the abundance of deals on electronics and appliances, advising listeners to subscribe to their daily newsletter for the latest updates.

• AirPods and Roku Premier: Ryan mentions "AirPods right now for $94 at Walmart" [05:35], a saving of $75, and offers a marketplace review of the Roku Premier, suggesting it as a good entry point for Roku users but noting its limitations in functionality [06:08].

• Dyson Vacuums: An anticipated sale on a "Dyson 11 cordless vacuum for $350 next week at Walmart" [06:36] is highlighted as a must-watch deal.

Clothing and Wardrobe Refresh

Karis addresses the current turmoil in the clothing market, questioning whether consumers should take advantage of Black Friday deals or wait for potentially better discounts in January [06:59]. She suggests that while some specific items like pajama sets may be affordable now, significant clearance deals are likely to appear post-holiday season [07:19].

Notable Quotes:

• Ryan Reynolds on staggered sales: "It's just crazy" [03:31].
• Karis on wardrobe deals: "The clothing market is in such turmoil right now, so it's great if you need a wardrobe refresh" [07:19].

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Listener Questions and Expert Advice

1. Delta Flight Pricing and Booking Strategies

Listener: Mary from Michigan
Mary inquires about the steep rise in Delta flight prices from $350 to over $800 for a trip to Florida in March 2025 and seeks advice on whether to book now or wait [08:12].

Karis' Response: Karis explains that flying Delta out of dominant hub markets like Detroit often results in higher fares due to the lack of competition. She advises exploring alternative airlines that may require layovers but offer more affordable rates. Additionally, she recommends booking domestic tickets "six to ten weeks out" for the best prices and notes that March's popularity for spring break can drive prices up [09:20].

2. Opening a 529 Plan Post-Divorce

Listener: Carrie in Ohio
Carrie seeks guidance on whether both she and her ex-husband can open a 529 plan for their grandchild to benefit from tax breaks [11:03].

Karis' Response: Karis congratulates Carrie on her amicable post-divorce relationship and explains that 529 plans must have a single owner, regardless of marital status. She suggests that both Carrie and her ex-husband can each open separate 529 accounts for their grandchild, potentially allowing both to benefit from tax deductions, depending on Ohio's specific tax laws [11:08].

3. Payroll Theft Scam Awareness

Listener: Laney in Rhode Island
Laney reports receiving a suspicious email requesting a change in direct deposit information, suspecting a payroll theft scam [11:37].

Karis' Response: Karis acknowledges the growing trend of reverse payroll scams where fraudsters impersonate employees to alter direct deposit details. She advises employers to independently verify any such requests through internal channels before making changes and underscores the importance of implementing safeguards to protect payroll systems [12:47]. She emphasizes vigilance as scams continue to evolve [14:38].

4. Home Equity Lines of Credit (HELOC) and Retirement Planning

Listener: Janae in Illinois
Janae asks whether opening a HELOC is advisable for retirees and inquires about fixed-rate options and suitable terms [23:12].

Karis' Response: Karis affirms the importance of securing financial tools like HELOCs while still working, as they may not be accessible post-retirement. She explains that HELOCs typically have variable rates tied to the prime rate and recommends approaching credit unions for more favorable terms. She distinguishes HELOCs from home equity loans, which have fixed rates, and stresses using HELOCs primarily for home improvements to maintain financial stability [25:22].

Notable Quotes:

• Karis on Delta fares: "Delta charges far, far more per mile on nonstop routes" [09:20].
• Karis on 529 plans: "529 accounts have to have a single owner" [12:47].
• Karis on payroll scams: "The big thing here is employers need to have independent verification" [13:11].

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Investment Predictions for 2025

In the latter half of the episode, Clark Howard shares his insights on the stock market's trajectory leading into 2025.

Market Valuation and Economic Fundamentals

Clark discusses the initial market euphoria following President Trump's reelection, which later subsided due to global uncertainties, including geopolitical tensions with Russia. He emphasizes that despite market volatility, the fundamental strengths of the U.S. economy—such as robust employment trends and dynamic growth—remain solid [14:54].

Investment Strategy: Slow and Steady

Clark advocates for a "slow and steady" investment approach, maintaining a diversified portfolio without reacting impulsively to market fluctuations. He highlights the concept of "reversion to the mean," where overvalued markets are likely to normalize over time, leading to more modest returns compared to previous high-growth periods [16:00].

• Diversification and Consistency: Clark stresses the importance of consistent contributions to retirement accounts like 401(k)s, regardless of market conditions.

• Avoiding Market Timing: He discourages the practice of attempting to time the market, whether by selling off assets during downturns or making hasty purchases during peaks.

Economic Optimism amid Overvaluation

While acknowledging that U.S. stock holdings are currently overvalued, Clark remains optimistic about the long-term stability of the economy. He advises adjusting expectations for investment returns rather than altering investment strategies, reinforcing the value of disciplined financial planning [23:12].

Notable Quotes:

• Clark on investment approach: "Slow and steady ultimately wins the race" [16:00].
• Clark on economic fundamentals: "The fundamentals of the US Economy are rock solid" [22:30].

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Additional Holiday Deals and Recommendations

Southwest Airlines Gift Cards

Karis and Ryan highlight a special offer from Sam's Club and Costco, where Southwest Airlines gift cards are available at a discounted rate of "$429 for a $500 card" [23:26]. This 10% discount is particularly advantageous for frequent flyers, providing long-term savings without an expiration date.

Marc Jacobs Fragrances

A promotional highlight features Marc Jacobs fragrances, including the iconic Daisy and Perfect lines, available in gift sets that make ideal holiday presents [17:24]. These sets offer a combination of favorite scents and matching travel sprays, positioning them as perfect gifts for loved ones [17:24].

Notable Quotes:

• Karis on Sam's Club deal: "What a deal" [23:26].
• Karis on fashion deals: "There are so many deals, especially for electronics" [06:59].

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Conclusion

The episode effectively blends practical advice on maximizing holiday savings with strategic insights into long-term investment planning. Listeners benefit from detailed discussions on the best deals across major retailers, expert responses to diverse financial questions, and a grounded perspective on market investment strategies. Clark Howard and his team continue to empower consumers to save more, spend less, and achieve financial freedom through informed decision-making.

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Resources Mentioned:

• Clark Deals: clarkdeals.com
• Mint Mobile: mintmobile.com
• Discover Credit Card: discover.com/creditcard
• Grammarly Enterprise: Grammarly.comenterprise
• Team Clark Consumer Action Center: clark.com/cac

For personalized financial advice, listeners are encouraged to visit www.clark.com/askclark to submit their questions.

Transcript

[Clark Howard]

This podcast is brought to you by Progressive Insurance. Fiscally responsible financial geniuses, monetary magicians. These are things people say about drivers who switch their car insurance to Progressive and save hundreds. Visit progressive.com to see if you could save Progressive Casualty Insurance Company and affiliates. Potential savings will vary. Not available in all states or situations. Ryan Reynolds here from Mint Mobile.

[Karis]

With the price of just about everything going up during inflation, we thought we'd bring our prices down.

[Clark Howard]

So to help us we brought in.

[Karis]

A reverse auctioneer which is apparently a.

[Ryan Reynolds]

Thing Mint Mobile unlimited premium wireless 3030 biddy get 30 a bid to get 20. 2020. Better get 2020 a bit to get 15 15, 15, 15. Just 15 bucks a month.

[Karis]

Sold.

[Clark Howard]

Give it a [e-mail] switch. $45 upfront payment equivalent to $15 per month. New customers on first three month plan only.

[Ryan Reynolds]

Taxes and fees, extra speed slower above 40 gigabytes. You detail.

[Karis]

It's my pleasure to welcome you here where our mission is to serve you with advice and information that empowers you so you make better financial decisions in your life. And today we never have guests, almost like just a couple of times a year. But today I'm honored to be joined by a special guest who hasn't been with me on the podcast in a whole year. Karis, our chief deal digger from clarkdeals.com is going to tell you what the best deals are this holiday season. And wow, there have really been some great deals so far. And later I'm going to give my predictions. This is really a stupid journey, but I'm going to give you my predictions on what's going to happen with investments in 25. But let's go straight to Charis and Charis, it's wonderful to have you here.

[Ryan Reynolds]

Thank you so much for having me.

[Karis]

So if you're not familiar with clarkdeals.com and our Clark Deals Daily newsletter, we tell you what we think are legit. Real deals on stuff, on travel, on whatever. And Karis has been at this how many years now?

[Ryan Reynolds]

About eight years.

[Karis]

Eight years bringing bargains to your wallet. And we are in what is the Super Bowl, World Series, the Stanley cup, the NBA championship, all of it. I gotta mention the World cup because soccer's so big now, Black Friday month is all those things wrapped up into one. And you last slept Halloween night, is that about right?

[Ryan Reynolds]

Yeah, we're around the clock, you know.

[Karis]

Round the clock right now. So trends this year. What are you seeing? Where we go back two years ago it was like, are you going to find gifts on the shelf. We got the gifts again.

[Ryan Reynolds]

Oh yeah, we definitely have the gifts. So there's so much going on. I mean, there was October sales and it kind of trickled into November. Now it's like a big explosion of deals and there's just everything. I mean you're going to find all the TV deals and the stores really this year are doing staggered deals. So we had Walmart sale on the 11th that started with an official Black Friday sale. And then on the 24th they're going to start again. And so it's just crazy. It's just crazy.

[Karis]

And people are buying the deals. I've seen the sales figures for Walmart and Amazon and those are the two behemoths for Christmas shopping. I guess Costco would be the third. And they're reporting just very large sales of the promotional items being sold right now, right?

[Ryan Reynolds]

Yeah, it's huge. And Amazon's going to start their official Black Friday sale this Thursday. So you want to watch out for that as well as Best Buy. They've been doing like some of the stores have been doing like preview sales. So you'll have like Belk and Macy's. And Macy's already started on the 14th with their official Black Friday sale. But you'll want to look out for next Monday Walmart because they're going to have more like door buster type deals. Some of them have already sold out from the first wave. But there's going to be a huge deal on a 65 inch TC LTV Roku TV for 228. So if you're a Walmart Plus.

[Karis]

Wait, wait, don't race through that. A 65 inch TV for 228.

[Ryan Reynolds]

228, yeah. But you want to probably be a Walmart plus member to get that deal because it's probably going to sell out so quickly.

[Karis]

Is Walmart plus still available on trial for 49 for a year?

[Ryan Reynolds]

Yes. Yes. You can do 50% off. Yes.

[Karis]

Okay.

[Ryan Reynolds]

Yeah. For new members. So that's a good one to look out for. If you're looking for a tv. There's tons of other TV deals. We expect that still people will be rolling out really great deals. Thanksgiving, Black Friday. But some of these are just very staggered because they want to catch people's attention, you know, so. Right, yeah, there's tons of deals on electronics at Amazon especially like fire sticks. Those are like 50% off. Plus there's all kinds of stuff like at Costco, Costco just announced or released the next wave of their Black Friday deals. Have A lot of ring things on sale. I know you have the ring security system, right?

[Karis]

That's right, yeah.

[Ryan Reynolds]

So that's on sale. It's $80 off. So that's a good one to look at. We also have a Costco deal right now, which I know you love Costco, so we always have the best Costco deal we can find at Clark Deals. But you could afford $45 gift card with the Costco membership, so.

[Karis]

Well, the TV I bought recently, I bought at Sam's Club because it was $698 for an 85 inch TV.

[Ryan Reynolds]

How big is that TV?

[Karis]

85 inch. I mean, it's not quite big enough. I wanted 98 or 100, but my wife capped me at 85 inches.

[Ryan Reynolds]

Oh my goodness. Gave me a limit. Oh my gosh, it's hilarious. There's also AirPods right now for $94 at Walmart. Third generation AirPods that people are really like those. I know that's a savings of $75. Roku Premier, $18 at Walmart. There's just a ton of stuff right now. So I think the best thing to do is subscribe to our newsletter so you can get everything that we know is hot off the press every day. And that's the best way to do it. I think so.

[Karis]

So I would say with the Roku premiere, if I can give a marketplace review of that one, is that if you're just wanting to sample Roku, get that one. If you're really going to use Roku, don't buy the Premier because the remote is so limited in the functions.

[Ryan Reynolds]

Yeah, yeah. It may be better to go up if you want a really robust one. You know, those are on sale too, so that's a great one to look at. There's Dyson vacuums. Dyson 11 cordless vacuum for 350 is going to be on sale next week.

[Karis]

Who's going to have that next week?

[Ryan Reynolds]

Walmart.

[Karis]

Walmart?

[Ryan Reynolds]

Yeah. So there's just so much you really? Yeah. And you know, our audience, our readers are just so smart. Like a lot of them will like look at Clark Deals and buy stuff throughout the year so that they don't have to spend so much right now. But there's still so many great bargains right now, especially for electronics. Appliances are a great thing to look at right now, wouldn't you say? Appliances right now? Yeah.

[Karis]

And I've been reading in the financial press that clothing is sitting unloved on the shelves. So I can't figure out with clothing, should people be buying the Black Friday deals or should they wait till the retailers get desperate in January to clear and. I can't answer that question. You may or may not be able to.

[Ryan Reynolds]

Yeah, I mean, probably you can get, you know, like the pajama sets on sale, you know, for the matching family pajamas and things like that. Macy's, Black Friday. We're probably going to see a lot of leftovers in January, though, so I'm thinking they're going to really want to clear out then. So.

[Karis]

Yeah. The clothing market is in such turmoil right now, so it's. It's great. If you need wardrobe, I get a lot of suggestions. For those of you watch our YouTube show that I could use a wardrobe wardrobe refresh. It's just I'm too cheap to do that.

[Ryan Reynolds]

Well, if the Costco sales are running now, you know, they have like the buy 10, get $50 off or something. You could buy like 10 pair of khaki shorts and, like, they'd be like $6 a pair or like $4 a pair or something. So you'd be set.

[Karis]

Okay, I'll look at that. I'll look at that. Karis, thank you so much. And the newsletter is daily, every day.

[Ryan Reynolds]

Every single day.

[Karis]

Except for Christmas.

[Ryan Reynolds]

I used to have Christmas, so. Yep.

[Karis]

Okay.

[Ryan Reynolds]

Thanks, Clark.

[Karis]

Thank you very much. Clarkdeals.com so, Krista, I love talking about deals. I mean, Karis and I could have talked about deals three or four hours, and by then every viewer or listener would have been asleep.

[Listener]

No, no, no.

[Karis]

I just, I love bargains. And this year the retailers have been so well stocked and there are so many deals and. But there aren't going to be the clearance items later, as we have had the last couple years, because stuff's really selling right now. Wow.

[Listener]

All right, we'll go to questions. Mary feels like she is definitely not getting a bargain. She says, this is Mary from Michigan. Is Delta greedy, or did the recent hurricanes make travel to Florida insane? We have a cruise booked, and we need a flight from Detroit to Miami March 7th through 15th of 25. We prefer to fly nonstop, and the flights right now are over $800. They're usually in the $350 range. Should we book now or wait? I'm worried.

[Karis]

Okay. For March, you're too far ahead, number one. But number two, you gotta understand the pricing pattern that Delta uses in their hub markets. Delta so dominates flights out of Detroit, Minneapolis, Salt Lake, Atlanta, that in those hub markets, Delta charges far, far more per mile on nonstop routes than they do in other markets because they are so dominant. So if you were to look instead at another airline out of Detroit, you might have to change planes somewhere to get down to your trip to your cruise. You'll almost certainly be back in the $350 range you're used to. But if you fly a hub airline like American out of Dallas, United out of Chicago or Denver, they're in a real dog fight with Southwest right now. So not as much. But with any of the full fare airlines, the markets that are their hubs. Charlotte would be the best example for American where they just clobber people in North Carolina with massive fares. The problem you've got is if you fly Delta out of a market like Detroit where they're dominant, you're going to pay double or triple the fare you would on competitors. But the sweet spot for booking a domestic ticket tends to be six to 10 weeks out. March is also a premium time because a lot of people are doing spring break trips. They're tired of winter in the Midwest and that does bump fares up a fair amount.

[Listener]

Carrie in Ohio says in August my first grandbaby was born. Congratulations.

[Karis]

Congratulations on that.

[Listener]

My ex husband and I would like to open a 529 for her. My question is, can we both get a tax break for it? I wanted to open the account with both of our names on it so we can both contribute. But I wasn't sure how the tax advantage would work. For some background. We're on very good terms and I've done his taxes and his wife's for the last 14 years. So we have no issues working together on stuff like this. We are both remarried and both file married filing joint returns. If this isn't an option, do you have a suggestion?

[Karis]

Okay. First of all, congratulations on how you have navigated post divorce life. There's every kind of marriage, every kind of divorce. So you cannot jointly own a 529 account even if you were still married to each other. 529 accounts have to have a single owner. So if your ex husband wants to set up one, that's fine. If you want to set up one, that's fine. And depending on the laws, if you both live in Ohio or depend on the tax laws in Ohio, if more than one person opening a 529 for someone who's a beneficiary can each take a tax deduction or not. And I defer to your knowledge, since you do tax returns either as a living or a hobby, I can't tell. You'll be able to see whether you each can open a 529 for the grandbaby and each take a tax deduction on it. But again, regardless of marital status or anything, a 529 plan can only have a single owner and a single beneficiary.

[Listener]

Laney in Rhode island says, hi Clark, My employer received an email today that was supposedly from me asking the employer to immediately change my direct deposit information for payroll. It offered to provide new routing and account numbers for my paycheck to be deposited. The email conveyed a sense of urgency about making the change before the next pay date. Apparently the criminals are just going straight for our paychecks now.

[Karis]

Thank you for bringing this up. You're the second person we've heard from about this payroll theft scam. And so it's a pretext. In this case, most pretexts are from a company or government agency, the post office, FedEx, Amazon, whatever sent to an individual. This is a reverse scam where companies are receiving emails from supposedly their employees trying to change direct deposit. And so this is a new pattern and I appreciate you bringing it to your fellow listener and viewers attention because the big thing here is employers need to have independent verification today when they receive instructions from an employee for direct deposit change and not just take it at face value. Receiving communication by internal communication of a company or by an email coming that could have been an external email address. You just don't process that change of direct deposit until you verify directly with the employee or else everybody's going to be unhappy. And this is obviously an area that's working for criminals. That's why you got to be aware that you got to put rails in place, safeguards in place to protect your payroll account and your employees as well. Gosh, the scams never stop, do they?

[Listener]

Unfortunately, no.

[Karis]

And they never stop morphing either. Coming up ahead, there are people who think the stock market is a scam. I don't. But I want to tell you, a lot of the hype right now could cause you to lose money anyway.

[Clark Howard]

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[Listener]

Remarkable with Marc Jacobs fragrances this holiday season. From the iconic Daisy and Perfect to the all new Daisy Wild Marc Jacobs perfume. Gift sets include everything she needs to feel special from her favorite fragrance, plus the matching travel spray. Holiday gifts don't get much more perfect than this. So if you're looking for a gift inspiration these holidays Gift the Remarkable with Marc Jacobs.

[Karis]

So there's a lot of confusion about the stock markets right now. There was an initial euphoria and the part of investors after President Trump was reelected. I don't know quite what you call it when somebody was president, then wasn't and then is again. But we'll just call it that President Elect Trump. And then after that there was kind of like a fall off what's referred to as the Trump Bump becoming the Trump dump. But reality is world events and the profits of companies ultimately control earnings. You know, now we've got the fears of what Russia may do and now Putin says you Stop taking away my candy or I'm going to. I'm going to blow up the world with nukes and all that. Stock markets don't like that. So I want you to know that initial euphoria for people following the election cycle, followed by oops and all that, know that over time, over time, what really matters is, are companies making money? Are those profits increasing over time decreasing? And what are you actually paying for each share of that company's stock? And right now, what you're having to pay for the share of an average company's stock is really, really high. The values of US holdings are really abnormally high. So does that mean that I'm selling anything I own right now? No. Am I buying frantically right now? Not that. Either anyone who has listened to me or watched me over the last many decades know what I say concerning market conditions in good times and in bad, in times of great pessimism or times of great optimism, is I believe that slow and steady ultimately wins the race. I am Dullesville. I'm a dull person. I invest the same way. And so right now, no changes in what I'm doing. I don't expect the kind of returns over the next 10 years that I've had over the last 15. I don't expect that. I expect that returns are going to be more anemic because of an economic principle known as reversion to mean that when values get kind of out of whack to the high side over time, they gradually find their traditional ratio of value. And so what I'm doing is what I've always done, 401k money going in every month, diversified money that I put into investments monthly just keeps going as it was widely diversified. And that's my thing, slow and dull. And I know there are people who are always the hot money kind of people, the kind of people who love sports betting or going to Vegas or whatever and look at investing the same way. That's not my game. See, my game is to be dull. If I have the resources so my life can be exciting so that I have financial security. That's what I'm about. So, yeah, if the election cycle had gone the other way, there are people who would have felt morose and would have dumped what they had, and that would have been a bad idea too. The whole concept that you should put huge money in or pull money out if you have money to do that with all at one time, that to me is something that if people enjoy that, go for it. But what I'm about is living on less than what I make and having long term financial security. And we do live in a dangerous world. We've always lived in a dangerous world. And so you cannot overreact to events in the world that happen either good or bad. You have to look at fundamentals. The fundamentals of the US Economy are rock solid. We are just about the most dynamic and successful economy on all of planet Earth. A lot of people didn't feel that way because of the brutal cycle of inflation that we went through through Covid and afterwards. But we are still a solid economy. We have compared to the rest of the world, very favorable employment trends and very favorable economic growth. I do feel, though, as I said at the very beginning, markets are almost certainly overvalued. But that doesn't make me change my mix. It just makes me change my expectations for what kind of gains I'll see going forward.

[Listener]

All right. We had Karis on earlier about deals and AD in Texas wrote in with one for you. Southwest Airlines has a great deal at Sam's Club for their $500 gift card. It's only $429 for the card. What a deal.

[Karis]

So this has been episodic at Sam's and Costco have been doing these deals, 429 for 19 then back to the regular 449, 449 for $500 worth. So the the baseline is if you do fly Southwest regularly and they are the largest airline for domestic flights in the US you're getting a 10% discount on all your Southwest flights and the money has no expiration date. Buying it on Costco or from Sam's Club and then they keep doing these specials like AD has pointed out where you get an even bigger discount at buying it at 419 or 429. And all I got to say about that. What a deal.

[Listener]

I'm in Hawaii, says Aloha from Hawaii. My comment has to do with a recent auto rental. I returned from travel to Florida and booked a one week rental car with a company that I've never heard of, Clark, through a website. The weekly rate was only $69. Of course it's been a long time.

[Karis]

Since we've had car rentals for a week. $10 a day. Man.

[Listener]

I read all the fine print and I had everything covered. I have primary auto insurance which covers liability and collision and I use AMEX for collision and loss of use coverage. However, when I got to the rental car counter I was advised that my coverages could not be la that one policy needed to cover all three, I suggested that this should have been specified in the rental agreement, but to no avail. Since I was.

[Karis]

That was. That was a bunch of hooey, by the way.

[Ryan Reynolds]

Hooey.

[Listener]

Since I was now hostage several miles away from the airport, I ended up paying another $94 for coverage. In total, $163 for the week was still a great deal and everything else was smooth. But I felt I was misled and would like to hear your take. Mahalo.

[Karis]

Mahalo. And you were misled. You were taken advantage of. I. Man. And, and I have been seeing more and more UFO car rental brands that I don't know if they're. Somebody got together and said, hey, wait a minute, we got eight vehicles here. Why don't we set up our own car rental agency? Because you look now and it's a joke. You see all these car rental agency names that no one's ever heard of, and often they involve a bait and switch. So you, I think, did very well even getting ripped off on the pseudo coverage that they made you buy before you left the counter. You still ended up with a cheap rental. But I am very nervous about using these UFO car rental agencies. Not that the service has been the greatest from the big car rental companies. I'm just not sold on renting from these off, off, off brands that are so prominent in Florida, Nevada, and I'm sure coming soon to your home state of Hawaii.

[Listener]

Janae in Illinois says. Hi, Clark. On a recent podcast, you discussed the need to obtain credit cards before you retire in the event your level of earnings in retirement will not qualify for a new card. I was wondering if the same concept applies to home equity lines of credit.

[Karis]

It does.

[Listener]

If we have significant equity in our home, is it advisable to open a HELOC on the home in the event it's needed at some point in the future? Are there fixed rate HELOCs that can be locked in on a rate or are they always variable based on when you draw on it? Would a 5 year or a 10 year term be recommended? If this approach is advisable?

[Karis]

Okay, so Janay, very interesting question. And you are right that for people that are actively working but are looking forward to retirement, you have a lot of equity in your home. Just as you mentioned. I want you to make sure you have the credit cards you want while you're still working because you may not qualify for them in retirement. Same thing with the heloc. Now you're talking about a heloc, and also at the end you're talking about what's known as a home equity loan. They're very different products. A HELOC is a standby line of credit for a certain amount of money that they'll grant you that you can draw on very easily when you need access to funds to do an improvement at your home or something like that. Whatever it is, I want it only used to improve your home. People use HELOCs for a variety of non domicile functions. I don't like that. But anyway, the HELOC is always a floating rate because it is a line of credit and it's set typically based on the prime rate. They tell you which prime rate they go by plus an index added onto it, plus a spread. And so the rate changes as often as every 30 days on the HELOC. You set up the line depending on the credit union you use. And you should go to a credit union first to look for a HELOC because almost always the terms are more favorable than they'll be at a bank. And they will tell you you get this line of credit established for whatever period of time they tell you it's for. A home equity loan is a whole different thing. It's one you draw on and then you pay for it at a fixed rate. For most common five year term you can do 5, 10 or 15, but the interest rates tend to be very unfavorable on a 10 year payback and way unfavorable on a 15 year. So doing the HELOC before you retire is a great idea even if you have no immediate need for the funds. Because if, let's say suddenly you need a new roof and you're retired, the HELOC becomes a good source of funds potentially to replace it. Or you need a new furnace, or you need a new heat pump or whatever it is. And so your thinking is right on the money. And thanks for bringing that question to me. And I want to thank you so much for joining us on Today's podcast and YouTube show because this is all about you. And speaking of you, if you need or could benefit from one on one advice or guidance or getting a question answered, we provide that 30 hours each week except holiday weeks and it's completely free. We've been doing it for 32 years now. I guess it is. So you can see how to get that free one on one advice from the Team Clark Consumer Action center by going to clark.com cac and what we're all about is you learning ways to save more, spend less and avoid getting ripped off. We'll see you tomorrow.