The Clark Howard Podcast – Episode Summary
Episode Title: Clark Answers His Critics on Clark Stinks / Recommended: Digital IDs
Date: December 5, 2025
Hosts: Clark Howard, Krista

Episode Theme Overview

This episode is a classic "Clark Stinks" installment, where Clark and Krista review and respond to listener criticisms, corrections, and suggestions relating to recent financial advice or comments Clark has made. The show emphasizes humility and continual learning, with Clark openly acknowledging mistakes or oversights. In the latter part, Clark strongly advocates for adopting digital IDs, explaining their advantages and future potential.

Key Discussion Points & Insights

1. Clark Stinks: Listener Critiques and Corrections

Taxation Differences for Savings Accounts (01:21)

• Listener Point (Chuck, PA): Clark failed to mention that U.S. Treasury money market accounts aren’t subject to state taxes—important for residents of high-tax states.
• Clark’s Response (02:13):

  "Some of the biggest states have state specific municipal money market funds... you don't pay state or federal tax on it."

• Extra Insight: State-specific municipal funds may offer even greater after-tax yields, despite some credit risk.

True Cost Comparison: Hybrids, Electric, Gas Vehicles (02:42)

• Listener Point (Chuck, MA): Clark oversimplified when comparing per-mile operating costs, ignoring higher upfront costs of hybrids/electrics.
• Clark’s Response (03:14):

  "Toyota... has narrowed the gap so much... usually it's going to be like more like a five year cycle to make the payback now hybrid versus gas engine... Electric... it's hard to make back the savings... The marketplace is going to force sellers of electric vehicles to become more efficient."

• Key Takeaway: Market shifts and manufacturer strategies are gradually shortening the 'payback period,' especially for hybrids—less so, currently, for EVs due to loss of tax credits.

Real World EV Costs: Plug-in Hybrids (04:29)

• Listener Point (Mark, CA): Despite paying extra for a plug-in hybrid, high electricity costs wiped out savings over gasoline.
• Clark’s Response (05:13):

  "Most owners of plug-in hybrids never plug them in... only 2 miles per kilowatt, that's a crazy low amount... that may be the case with the particular plug-in hybrid you have."

• Memorable Moment: Listener’s detailed cost math, and Clark’s acknowledgment that manufacturers’ efficiency claims don’t always translate to real-world savings.

Roth 401k Contributions & State Taxes (05:58)

• Listener Point (Richard, NV): Clark’s Roth advice doesn’t factor in high state taxes and plans to move to a no-tax state in retirement.
• Clark’s Response (06:37):

  "Yes, if you make the move... you're absolutely right. Most people end up staying in the state they're in. But if you were pretty clear that's going to be your intention... you're 100% right."

• Key Takeaway: Location and planned retirement state are crucial in Roth vs. traditional account decisions for high-earners.

Finding Better CD Rates (07:23)

• Listener Point (Joseph, NJ): Clark overstates that the best CD rates are always at major brokerages. Listener found a better rate (Synchrony Bank).
• Clark’s Response (07:46):

  "Companies that have very large credit card portfolios may... offer better rates... It's fairly rare, but it can happen, as you so demonstrate."

• Practical Tip: Always check both banks and brokerages when shopping for CDs.

Retiring Abroad & Medicare Enrollment (08:36)

• Listener Point (Lawrence, GA): Retirees abroad should still sign up for Medicare Parts A & B to avoid penalties if they return to the U.S.
• Clark’s Response (09:01):

  "It's almost like an insurance policy... so that if you do return, you come slide right back into Medicare."

• Memorable Moment: Stat: Around 4 million Americans live overseas, and up to 20% are considering it at some point.

Protecting Against Airbnb Claims (09:55)

• Listener Point (Kent, IN): Clark neglected to say you must take a video of the Airbnb both on arrival ​and​ on departure.
• Clark’s Response (10:35):

  "You shoot the video in the beginning and you shoot the video at the end... I'm guilty often of squirrel, squirrel, squirrel... I just forget."

• Humorous Moment: Football analogies—hosts joke about "fumbling on the goal line."

NFL vs. College Football Parity Debate (11:22)

• Listener Point (David, FL): Despite being a college fan, agrees NFL offers more competitive games.
• Clark’s Extended Take (12:34):

  "College football is sowing the seeds of its demise... There has to be... an amount of money that goes into a pile and that is what a team can spend on talent."

• Memorable Quote:

  "You think you set off a storm talking about politics? No, I'm going to set off a storm talking about salary caps." (Clark Howard, 12:34)

• Key Insight: The NFL’s enforced parity is better for viewers; college football needs salary caps to remain competitive.

2. Digital IDs: Why Use Them? (16:34)

Clark’s Enthusiastic Pitch (16:34)

• Clark’s Experience:

  "I love the digital ID. In fact, I got a digital driver's license when my state joined the system for iPhones and Androids... it's great because... at most TSA places I'm able to tap with my phone." (Clark Howard, 16:34)

• Benefits:
  • Speeds up security and other ID-checking processes.
  • Reduces need to carry a wallet everywhere.
  • States are rolling it out gradually; more widespread use is coming.
  • Digital passports are also available for easy re-entry to the U.S.
• Caveats:

  "If you get stopped... you’re still going to have to show your physical driver's license... we’re a bit away from when you’re not going to have to carry it." (Clark Howard, 17:57)

Step-by-Step: Adding Your Digital ID (18:49)

• Krista’s walkthrough:

  • Open Google Wallet (or Apple Wallet).
  • Use state-specific process: enter personal info, photo of ID front and back, selfie photo for identification.
  • Most states approve within hours.

• Security Tips (19:58):

  • Password-protect the digital wallet—Krista uses fingerprint authentication.
  • Be aware of rare but notable risks of digital theft, such as face-ID exploits in theft cases.

• Clark’s Cautionary Note:

  “...Criminals were drugging people with iPhones... using their face to get into their brokerage accounts...” (Clark Howard, 20:07)

  • But these are very isolated incidents and shouldn’t deter most people from adopting digital IDs.

3. Listener Questions

Fast Digital Passport Renewal (20:51)

• Matt, CO: Praised the new State Department system—received a renewed passport in four days.
• Clark’s Reaction (21:48):

  “I have never heard of somebody getting just a standard renewal in four days... if you’re eligible for [digital renewal], absolutely 100% do it.”

Replacing Southwest Credit Card (22:24)

• Allen, TX: Wants to swap Southwest card for Capital One Venture X but is reluctant to thaw credit/fill application.
• Clark’s Recommendation (23:00):

  “You’re going to have to thaw your credit and... do the online application ... Do it based on when the best deal is available for bonus miles.”

  • Notes Venture X is the best free-agent mileage credit card currently.

Is Chase Sapphire Preferred Worth the Annual Fee for Rental Car Coverage? (24:07)

• Tom, CO: Considering upgrading for primary rental car insurance coverage.
• Clark’s Advice:

  “100%... at $95... it is the best deal I know of to get primary rental car coverage where you can say no to all the junk...”

  • Only caveat: liability coverage for damage to others isn't included.

4. Memorable Quotes & Moments

• Clark on Listener Feedback:

  “No, everything's like right out of my head... I do stink on that. Because think how many times somebody has said. I kept waiting for you to say blah, blah, blah. And I just forget.” (Clark Howard, 11:05)

• Salary Cap Hot Take:

  “College football is sowing the seeds of its demise... there has to be like the NFL has, an amount of money that goes into a pile and that is what a team can spend on talent.” (Clark Howard, 12:39)

• On Digital IDs:

  “I love the digital ID... it makes it so much easier.” (Clark Howard, 16:34)
  “Make sure that you password protect that app.” (Krista, 19:56) "I would not use isolated crime stories as a reason not to go digital." (Clark Howard, 20:51)

5. Timestamps for Major Segments

• Clark Stinks: Listener feedback and Clark’s responses — [01:12–14:43]
• Digital IDs: Advocacy, how-to, and security tips — [16:34–20:51]
• Listener Questions: Passport renewals, credit cards, rental coverage — [20:51–24:55]
• Behind the Scenes: Deals team shoutout — [26:29–27:01]
• Wrap-up and final thoughts — [27:01–28:14]

Tone & Takeaways

The tone is engaging, humble, occasionally self-deprecating, and warmly informative. The episode provides actionable personal finance advice, corrects common misunderstandings, and encourages adoption of new digital tools for convenience and efficiency—while emphasizing the need to stay vigilant about security and understand nuanced factors like local tax laws and real-world cost-benefit analyses.

Clark’s willingness to own up to mistakes and the lively listener engagement make this an especially accessible and helpful episode for anyone interested in getting the most value from their money, keeping up with consumer tech, or making sense of today’s personal finance landscape.