Full Show: Why Clark Is Excited About These Retirement Rule Changes and Umbrella Insurance

If you have a part-time gig or own a business, there are new rules that are really exciting to Clark! Also, the price of insurance is skyrocketing. Many people are making the dangerous decision to under-insure or self-insure, and the consequences can be catastrophic to your finances. Clark explains who needs umbrella insurance and why some state minimums on auto insurance just aren’t enough.

Plus, Christa shares your #AskClark questions and Clark gives his take. All this and more on the August 20, 2024, episode of The Clark Howard Show.

00:00 - Intro
03:43 - Why Clark Is Excited About These Retirement Rule Changes
08:32 - Ask Clark - Where to Put Idle Money
10:10 - Ask Clark - Distributing Retirement Between Traditional and Roth
11:46 - Ask Clark - Changing Beneficiary on Kid’s 509 Plan
15:29 - Why You Probably Need Umbrella Insurance
21:53 - Ask Clark - Lowes Scanning License to Check for Military Benefits
23:24 - Ask Clark - Paying Off Credit Card Debt with Retirement Account or Home Equity Loan
26:06 - Ask Clark - PAZE Using Capital One

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The Consumer Action Center is a free resource for advice on money and consumer issues. Call 636-49C-LARK (636-492-5275) and a member of Team Clark will assist you as soon as possible. The Consumer Action Center is available Monday-Friday from 10 a.m. to 4 p.m. ET.

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Our Promise to You:

[CliveBirse]

The concept of mini-retirement changed my life. I'm no longer waiting for some retirement paradise when I'm 65. It helps to know how to fund the lifestyle. You know, making money while you sip that piña colada by the beach does help. I wouldn't have been able to do it otherwise.

[leweezo]

I can't tell you how much Clark has changed my life for the better. I am going blind and my wife is the bread winner and I get a medium disability check. In 2011 Clark convinced me to cut the cord and switch to streaming.. We opened a Roth with Fidelity and funded it with that 138 a month and the credit card rewards from the Fidelity Visa. 14 years later, that Roth has 50 k in it and all it cost me was bad tv shows that I probably could not remember today. He has taught me to shop insurance and cell plans every few years. The other thing he nailed is how much money you can save by keeping your vehicle as long as it will run well. My wife's 03 Toyota Tundra is running great and we have not had a car payment for 16 years.. Thanks Clark, O iowe you a root beer
BTW, with that money we saved from a car payment, my wife contributed 10 percent to her 401k and pay off our house 6 years early.. We ARE debt free

[calvinbrown]

I like when Clark Howard get tough on the banks.

[kahrhoshe]

Holy shit!!!! how did i not know you still broadcast!!! ive missed you clark!

[beautifulpeopleonearth]

I’ve been diligently working, saving and contributing towards early retirement and financial freedom, but since covid outbreak, the economy so far has caused my portfolio to underperform, do I keep contributing to my 401k or look at alternative sectors to meet my goals?

[gatsby]

Thank you for the context. The answer is yes, it is not uncommon for insurers to write special lines of coverage through subsidiary company of the parent. USAA S.A. is one of several of those companies. Make sure that the umbrella policy lists each of the underlying policies, such as home and auto, whose liability limits must be at the required limit as specified by the umbrella. .

[Rodriguezpaul-]

I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Katherine Storch.

[kingcastro-sp]

I’m 53, retired at 45. I have 35% of my capital investments in an IRA, 20% in index funds, and the balance spread across other investment accts, in cumulative of over $850K. Currently looking for more investment opportunities.

[ElleC-nbem]

Thank You! Thank You! Thank You for the phone plan finder!! I just don't have the time to research what's available and this puts it all together for me ;)

[dsr]

Just paid $275 for a $1M umbrella policy referral in FL. That was up from $247 last year and $225 the year before. I might start shopping, but then I'd have to move all my other insurance policies, too.

[mikeshaw]

Regarding the question/issue with Paz’s. Change banks/cards.

[jnsa]

Does tool also give recs for home wifi internet?

[ross-smithfamily]

Take care of your OWN retirement!! Take full advantage of retirement plans available to you and do NOT rely on / hope that anyone else will take care of you.

[RalphPrescott]

Checking out your phone plan tool. Thanks for this.

A suggested improvement would be to include data prioritization details. Not all plans are equal here.

[Larry-dc]

Clark, respectfully, I'd like to point out a little flaw in your description of umbrella coverage. You state that if you, for instance, have a million dollars, you can protect it with a million dollar policy. It's not that simple. What a million dollar policy actually does is provide up to a million if you get sued. However, if you get sued for 2 million, and loose, you will have to cover the difference. So it will protect you some, depending on the scenario. After learning this when my mom was sued a couple years ago, I upped my coverage beyond my assets. As a friend told me, what you get from an umbrella policy is the services of a bunch of insurance company lawyers if you need it. The more coverage, the more the insurance company will fight for themselves, and ultimately protect you. But you can't 100% protect yourself with umbrella.

[averageguy]

So what if you get the minimum in auto insurance and umbrella insurance? Won't you be insured for more?

[makeyourlifeeasier]

"In the south we call traffic lights red lights." Up here in Jersey we just call them "lights" because we don't pay attention to what color they are, we just keep driving!

[OpaG]

With Home Depot, veterans that have signed up on their system only need to enter their phone number when checking out. The system recognizes that you're a veteran and gives you the discount.

[Tolvor]

Umbrella State Farm is $1200 for the basic in Atlanta, GA

[FlagstaffChief]

Clark, I don’t know if you have covered this in a video, but the logic of a Roth is unassailable. Put investments into a Roth and you will do far better over time than will the same investments in anything else.