Jamie (6:25)

Okay, speaking of that, Jamie in Nevada says, I filed a homeowner's insurance claim in 2023 that the insurer fully paid. However, my policy renewal shows a 52% premium increase. 52% for the upcoming year. Should I shop competitors now to see if I can get a better rate, or should I wait until more time has elapsed since the claim?

Clark Howard (6:47)

Okay, so this is a good question. This is a great question, Jamie. All right, so that claim you have is on an industry database, what I call the bad boy bad girl database, where it shows that you had a claim, which means your insurer thinks they got you right where they want you, but the increase that they imposed is so large, it's worth it for you to shop that homeowners policy and see what others will write the equivalent coverage for the same coverages as you have. Now. The thing you said about time. Yes, the impact of that claim being on your record becomes less important with time. But right now you're facing this 52% increase, so I think it's well worth you shopping it also, I don't know if you've called your insurer and said, hey, what happened here? How did I get this 52% increase? Is there anything we can do about it? And you may qualify just by asking, you may qualify for something lower than what they're now quoting you.

Jamie (7:56)

By the way, that report, isn't that.

Clark Howard (7:58)

The clue report that it's called something else now.

Jamie (8:01)

Oh, is it?

Clark Howard (8:01)

Okay, it was. I always called it the clue report, but I'm trying to. I feel like maybe it's owned by LexisNexis now or something.

Sally (8:10)

Maybe.

Jamie (8:11)

Maybe our team can figure that out. Okay, Terrence in Georgia says, how often should you change homeowners insurance companies? And also, what are the pros and cons for bundling?

Clark Howard (8:21)

All right, wonderful question. We had one similar the other day, too, about bundling. So, yes, there is a direct advantage to bundling with many insurers that if you tie in your auto and homeowners together, they will give you a lower premium. If you do not live, you're in Georgia. So unless you're on the Atlantic Ocean coast, you're not subject to the instability in the homeowner's insurance market that people are seeing other places. So in your case, what I say routinely is I want you to reshop your auto insurance every three years. Reshop your homeowners insurance every three years. And you do them together. Because the idea of that is you're able to see what the benefit is of tying the two of them together with the company you're with or with others by reshopping at that time. And Sally, our managing editor, found the information. So it is LexisNexis but still referred to Sally as the Clue Report.

Jamie (9:24)

C L U E thank you, Sally.

Clark Howard (9:27)

So both are right at the same time, right?

Jamie (9:30)

Scott in Idaho says I love listening to your podcast. I'm a 22 year old college student with about $50,000 invested in the stock market. While I keep some cash set aside for potential expenses, most of my money is in investments.

Clark Howard (9:42)

Okay, stop right there. 22 already has saved $50,000.

Jamie (9:47)

Incredible.

Clark Howard (9:48)

That's really great.

Jamie (9:50)

I contribute as much as I can to my Roth IRA each year, but I'd love to hear your thoughts on anything I should be doing differently. I know you emphasize consistently contributing to index funds, but since I'm young and I have more time for my investments to grow, do you think I should focus more on individual stocks? I try to do thorough research before investing, but I'm open to any advice you may have.

Clark Howard (10:10)

So Scott, I'm a big believer and there actually is a Charles Schwab, Chuck Schwab, who founded the brokerage and he came up with a philosophy, gosh, maybe decades ago called Core and Explore. And I'm a big believer in Core and Explore, particularly for someone who is younger. And what you do with Core is you take 75 or 80% of the money you're investing and you put it straight into widely diversified index funds, Total stock market index, international index. You might put even at 22 a small amount of money in a and a bond index fund, you know, a two or three flavor mix of index funds and then the rest of your money the other 20, 25%. If you want to explore individual stocks, great. I want to modify that for you though because you're doing a Roth ira. I liken a Roth IRA for you to go just simple target index fund based at 2240 years from now. You know, 2065, 2070 fund would be the simplest way and then the reallocation of money over the years is automatic pilot. If you're more comfortable actively managing, then stick with the whole index fund thing that I was talking about. Now there is an advantage though for you if you are going to follow Core and explore that you do index funds in your regular investment account and trade individual stocks inside your Roth ira. That way you don't have to worry about capital gains taxes as you might more actively trade in individual stocks where index funds you're just setting and forgetting putting the money in. And that way you're trading. You can trade stocks without commission pretty easily now, and you wouldn't have to worry about any tax implications on the gains that you might have within the positions of the individual stocks that you would be free to trade as often and as much as you want. Now, I'm going completely opposite my philosophy, which is all about buy and hold. But you do your research, you like owning individual stocks, and I think that that's just fine, and particularly inside the Roth Coming up ahead, it's the season to give, and the joy of giving, I believe at core is not a trite phrase brings more joy to us than receiving. I believe it to be true. But how do you give and know that the money's going to what they say it's going to? We're going to talk about that.

Sally (13:20)

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Clark Howard (16:07)

I get the greatest joy in my life from being with my family. A close second is being involved as a volunteer or donating to organizations that I believe in. I mean, I just, it brings me such excitement to be able to go volunteer somewhere at Habitat or whatever it is and feel like I'm actually having a positive impact in somebody's life or community or whatever. And I really feel it. And this time of year, more than any other, we're more likely to want to give. The giving spirit is so alive through the Christmas season. It's also an opportunity for scammers to get in your wallet and rip off your hard earned money. That's not going to what they say it's going to go to big problem. But do you know that if you're intentional about charitable giving, whether it's through the year or like most people, it's a December thing you do, if you're intentional about it, then you're going to have a much better sense that your money is working effectively for what you intend for it to do. Starting with, you know, there's that old expression charity begins at home. But I've got one that I think differently. Charity begins close to home with organizations, causes that you have directly been involved in as a volunteer, board member, donor. If you're giving to an organization you have firsthand knowledge of, you're not going to give to something that you see wastes money. You're going to give to something that you know the impact that it has, the benefit that it creates. I think you always start there. But let's say you don't have that kind of knowledge and you're thinking, wow, I got solicited by this, that or the other. How would I even know if it's any good? Do you know it's so much easier than you Might imagine now because of the Internet, the same place that people come and try to con you also has the information where you can see whether an organization is on the up and up and is spending your money in a way that's efficient, honest, decent. And I love charitywatch.org, charitynavigator.org and give.org these three, I'll say them again. Charity Watch, Charity navigator and give all.org they each use their own criteria and they you might find a charity on one but not on the other two. Or you might find it on all three but. And they each use a little bit of different criteria. But you'll be able to see are they efficiently spending the money they receive. Are they on the up and up? I mean, I am amazed how many pseudo charities there are out there that virtually no money goes to the supposed name cause or to the people they're supposedly going to help. Instead, it seems like they're only helping themselves, the people behind the pseudo charity. So making sure that your money is going to where intended is so important. And if you get solicited by phone, not as common now, email by text, take the time before you give to check the organization out with one of these three organizations I talked about or all two of them. Are all three of them so that you know it's going to something legit. Somebody solicits you on a street corner, they may be absolutely legitimate. They also have a much greater chance of not being on the up and up. If you're not a longtime listener or viewer, you may not know the experiment I did long ago as a TV reporter where I stood on a corner in a Santa suit and didn't say a word, just stood there with a bucket and people were throwing money at me at that corner. I mean, not literally. They were putting it in the bucket. I was amazed. It showed the generosity and kindness of people. How often people were giving me money and how much money people were giving me. But I could have been completely bogus running off with the money. What I did with it was I donated it to Habitat for Humanity that I'm involved with as a volunteer and a donor so the money didn't get swiped by a crooked. But the point is, you don't know. I could have been anybody there asking for money and running off with it and not giving it to a cause that was worthy. So just know that your money is precious to you and you want it to have impact. I want you to be careful where.

Jamie (21:32)

You give it and watch out for elderly relatives or Neighbors too. This time of year especially.

Clark Howard (21:40)

I think I told the story about my late mom last month, how she got ripped off by a bunch of phony charities.

Jamie (21:47)

Okay. Chris in North Carolina says, I currently use a Prime Visa Rewards credit card. It's okay, but I feel I would benefit from a different rewards program such as the Wells Fargo autograph card, because the rewards cater more toward my spending habits. I pay my balance off weeks before it's due and my credit score is around 803. I don't want to damage that by opening a new account, but I feel I could maximize my points with a new card. What are your thoughts?

Clark Howard (22:12)

So the only reason you wouldn't get the card from Wells you're interested in is if you're planning on buying a home in the next six months and you want no new applications for credit at all in the six months leading up to a home purchase. If that's not part of your life and you're in the 800s, the impact to your score is very temporary and tiny for that new application of credit. And I think it's great to go for it. And remember, I want you to have at least two credit cards from at least two different issuers anyway. And if you're happy with the Wells card, go ahead and get it. We've had a history of customer service complaints about Wells Fargo and there's been some dishonesty there, criminal behavior over the years. To my knowledge, we have never had a complaint about the user of the Wells Fargo autograph card.

Jamie (23:11)

But check out our credit card tool@clark.com and put in because we, and we also review tons of rewards cards.

Clark Howard (23:17)

So, and you can see your pattern, put in what you see is your pattern of use. Or actually if you've got it down to the numbers, it'll be even more precise information and we'll show you the best rewards or cash back card out there for your exact situation.

Jamie (23:35)

Wade in California says, should I buy the CarMax extended warranty for the car we just purchased? It's a 2023 Mazda CX 52.5 Turbo.

Clark Howard (23:45)

So if you look on reviews people have posted about the CarMax extended warranty, it's no better than what people say about others. There are people who've been really happy they had it, but overall the reviews are not awesome. There's nothing about CarMax that makes it a scam. It's just so often the hype with any kind of extended warranty exceeds what they actually provide as a benefit. My general advice has been when you Buy a car at CarMax or Carvana. People think they don't need to have it inspected if they buy it from them.

Jamie (24:26)

That's actually the next question.

Clark Howard (24:28)

Oh, then I'll hold off and talk about that next.

Jamie (24:32)

Okay, but you always recommend the manufacturer's warranty, not manufacturers warranty.

Clark Howard (24:37)

So there's a 23 Mazda you could before the Mazda. This is a three year warranty. You can almost certainly buy an extension of that in the Mazda brand product. And I would compare what it offers versus the CarMax. I don't like third party warranties. I'm not thrilled with the manufacturer owned ones, but those have tended to be much more useful for people.

Jamie (25:04)

Okay. And Dan in Florida, what is your opinion about buying an almost new vehicle on CarMax or Carvana site unseen? Is there a product inspection good enough to be confident in making the purchase?

Clark Howard (25:14)

That's interesting because I started to and you stopped me. Yeah, that's not good enough that you know, Carmax and Carvana say we've done blah blah, blah, blah, blah, blah, blah. This car is great. They may even believe it to be great, but may have missed something. With Carmax and Carvana, depending on which one and where you are in the country, Carvana gives you seven days to return a vehicle for any reason. Carmax depending on the market, up to 30 days. Use that time to have it inspected by a mechanic of your choosing. If the vehicle's really new though, if it's a model year 24, 23, not a lot of miles on it, you're not as worried about the mechanical. You're more worried if it's been in an accident that they missed. At Carmax or Carvana. Going to a body shop and paying them to check the integrity of the vehicle and check to see if it's been in any kind of serious accident would be really money well spent. But for one that's older, more miles on it. Having it checked out by a mechanic of your choosing is money very well spent. Because you've got that time period. You can wind back the clock, give it back to them and get your money back. And that's really wonderful than later finding out. Oops. This vehicle's got a lot of problems with it. So I want to thank you so much for joining us today. I hope you have an absolutely wonderful rest of your day. And we are in the back half of the Christmas shopping season. The best bargains are in our rear view mirror in November is when the great deals are. But there are a lot of us who haven't even started Christmas shopping yet or only partway through. And even though the deals are not as good in December, there are still deals out there. And we're helping you with that@clarkdeals.com where we post bonafide deals that we believe really save you money. We have a daily Clark Deals newsletter. And then you can go to clarkdeals.com otherwise and see what deals we have. And know what we're devoted to is you learning ways to save more, spend less and avoid getting ripped off.