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

[@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.

[@mikegarvey17]

Yeah, people miss that part. You don't jet out to Puerto Rico with your life savings. Proper investing and a good business acumen are big pluses. Invest in the stock market, real estate, build businesses. That's just it.

[@ThomasChai05]

Safe to say not everybody has the skill to pursue investing. But it's always easy to follow the advice of someone who knows how to i.e a financial advisor. You could anywhere between 10--40k with the right ones. Online businesses are a good bet too if you are savvy.

[@mariaguerrero08]

@@ThomasChai05Your advisor must be really good. How I can get in touch? My retirement portfolio's decline is a concern, and I could use some guidance.

[@ThomasChai05]

*Izella Annette Anderson* is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@91ScottieP]

Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance

[@leweezo33]

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

[@Roksee]

Way to go, you!

[@kingcastro-s1p]

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.

[@jamespatrick7796]

I would say just get the services of a investment/financial advisor.

[@sheldongardner3150]

Bloomberg and other finance media have been recording cases of folks gaining over 150k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer, if you know where to look. I have been using an Fin Advsr since late 2023, and I return at least $121k ROI, and this does not include capital gain.

[@gennavievaddi5535]

I've attempted investing in the stock market multiple times, but the volatility always made me give up. who is your advsor?

[@sheldongardner3150]

There are many independent advisors to choose from. But I work with Monica Mary Strigle and we've been working together for years and she's fantastic. You could check her if she meets your requirements. Just research the name. You’d find necessary details to work with

[@gennavievaddi5535]

I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.

[@Rodriguezpaul-9]

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.

[@DaveCulbertson]

Wow. I'm a bit perplexed seeing her been mentioned here also Didn’t know she has been good to so many people too this is wonderful, I'm in my fifth trade with her and it has been super.

[@carolynvo7802]

The very first time we tried, we invested $2000 and after a week, we received $9500. That really helped us a lot to pay up our bills.

[@EilishMacaire98]

You trade with Katherine Storch too? Wow that woman has been a blessing to me and my family.

[@Brucelanham845]

I'm new at this, please how can I reach her?

[@erikyanez5371]

I was skeptical at first till I decided to try. Its huge returns is awesome. I can't say much.

[@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?

[@bukki07]

keep contributing to your 401K, remember you are in for the long haul, but I'd suggest you consider financial advisory

[@J.woltz48]

Agreed, having a good financial advisor is invaluable, my portfolio is well-matched for every season of the market and has just yielded 120% from early last year. I and my advisor are working on a 7 figure ballpark goal, tho this could take another year.

[@garrickphillips-x1z]

@@J.woltz48 good gains! who is this professional that guides you please? enthused about investing for my eventual retirement but dont know how to go about it, for now I only invest in my 401k through my employer and gains are quite slow

[@J.woltz48]

Katherine Nance Dietz is the licensed advisor I use. Just research the name. You’d find necessary details to work with and set up an appointment.

[@gkerrhome]

It wasn't covid. Covid had shut the economy down in 2020. The stock market crash and runaway inflation started in 2022.

[@calvinbrown8344]

I like when Clark Howard get tough on the banks.

[@Clark]

💪💪💚

[@kahrhoshe]

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

[@ElleC-nb9em]

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 ;)

[@Clark]

Happy you find it useful and hope it saves you money! 💚

[@briandadude]

Needs filters for features like WiFi calling. There’s a better website already out there if you search for “prepaid compare”

[@dsr8223]

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.

[@Clark]

Not necessarily. Sometimes it's better to unbundle (separate policies at different companies) your insurance policies for the best rate. You'll just have to compare all options - bundle vs unbundle. 💚

[@bman3020]

@@Clark Check out RLI

[@gatsby6815]

@@Clark I disagree on this Clark. As a property/casualty broker you want seamless umbrella liability coverage with your underlying policies. Meaning that the umbrella policy terms and conditions must mirror the underlying coverage. This is best achieved by using the same carrier. All too often a separate umbrella carrier’s coverage can be more restrictive which then leads to legal disputes on coverage between the two companies leaving the policy holder with no protection.

[@ross-smithfamily6317]

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.

[@Gumby1978]

Another great show!

[@makeyourlifeeasier5794]

"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!

[@Clark]

Ha! 😂

[@sarashann]

Medicare is a wildly popular government program. The government can deliver for citizens. I support mandatory retirement contributions. Other Western countries do this successfully.

[@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.

[@Larry-d1c]

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.

[@jeannet1059]

This reminds me that I should up my umbrella coverage!!

[@dsr8223]

​@@jeannet1059 I've been thinking of doing the same.

[@genxx2724]

Then it seems that if you have $2 million in assets, you would be safe with a $1 million umbrella. The insurance company will retain the services of a solid law firm to fight and defend the case to protect their $1 million, ultimately protecting you from paying anything. It is true that you cannot 100% protect yourself with an umbrella. When an opportunistic person sues you, they sent interrogatories demanding information about your insurance limits, which you have to answer. They seek to wipe out all of your insurance by scaring you and making a demand that exceeds the value of your home, which they can look up.

[@Larry-d1c]

@@genxx2724 my point is the insurance company fights to protect their exposure. The more insurance you have, the harder they will fight. You are only protected if the judgement is no more than your coverage.

[@genxx2724]

@@Larry-d1c My point is that if $1 million is sufficient for them to fight hard, then your assets over and above $1 million dollars are never reached.

[@averageguy1261]

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

[@USMCAllTheWay]

Most agencies make you get the max.car insurance, ie 500k, 500k, 500k. Then you will qualify for the umbrella.

[@charlessommers7218]

Great show 😊

[@davidpowell3347]

Is Umbrella Insurance better than added auto liability coverage limits (assuming that the umbrella insurance would apply to auto accident liability overrun) I believe limiting unnecessary driving and not fooling with "infotainment" and cell phones/smart phones while driving would be a factor in your favor as far as avoiding trouble cell phones as a constant companion a scourge of modern living ? Involved in a half or more of automobile crashes?

[@genxx2724]

An umbrella policy requires your underlying auto policy to be $500K/$500K.

[@toddfoster6285]

@@genxx2724 mine requires 250/500. but good point!

[@Clark]

In order to add an umbrella policy, you will have to increase your auto liability coverage to the maximum allowed by your lender. The umbrella is layered on top of your auto (and home) insurance policies, so they require for you to exhaust those first before they step in with umbrella coverage. 💚

[@Clark]

@@genxx2724 💯

[@bman3020]

@@genxx2724 Not always. Some companies allow much lower limits on underlying policies.

[@grayfox9911]

Thanks Clark & Team! NNTR

[@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.

[@Clark]

Thanks for the suggestion! Will pass this on to the creators. 💚

[@FoolsAmongUs]

Do not kid yourself, the only REASON they are allowing a Roth at this time is, they are going to have an influx of taxes on that account added to the Economy. When I converted mine many years ago (2000's), that is the first issue I had to deal with.

[@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.

[@jerede7731]

Depends on your current vs future tax rates. Good to have mix of Roth and Non-Roth retirement funds.

[@FlagstaffChief]

@@jerede7731 Non-taxable always beats taxable.

[@jeannet1059]

Love love love these podcasts!!’

[@mikeshaw4610]

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

[@jnsa9454]

Does tool also give recs for home wifi internet?

[@drz4073]

Bank just upgraded it's app - so now I would have to upgrade my phone (ios).... Think I'll walk back the upgrade to a tracfone and use the ATM... Spending 1K for a new phone doesn't seem to add value to my life

[@5metoo]

Base level iPhone is 450, so don't know why you're going on about 1k phones. I trade in my iPhone every 3 years to Apple and they give me about 300 for my 3 year old phone. So I've never paid more than 700ish for pretty much top of line at 3 year intervals. I never get extended warranty and never have a problem. 750 or so every 3 years to have an excellent *pocket computer* is a good deal for the function you get, and that function for most people is far higher than the PCs they used to buy that used to cost far more.

[@Tolvor]

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

[@CharlesVaughn-bm9gq]

Don’t self insurance for liability. Get highest amount of basic policy liability plus umbrella! Maybe for property and casualty.

[@donna-n5h]

Always great financial advice!

[@bme7491]

Try $800/year for a $1,000,000 umbrella policy here in California. $350 is no longer reality.

[@aperson1181]

Also, to the lady who cannot contribute to her Roth, why can't she lock in US Treasuries, different denominations, plus State tax-free income?

[@rkgatteleport]

Good luck getting an umbrella policy larger than $2million. We tried, and the insurance companies we contacted all got real squirrelly when we inquired about anlarger umbrella. Badly injuring somebody in a car accident will blow past this amount pretty quickly. What insurers will write larger policies?

[@genxx2724]

I had a $1,500 fender bender, and the opportunistic dirtbag passenger in the other car sued me for millions. The driver was not injured, testified that the passenger was not injured, and was not supportive of the passenger’s case. My car insurance retained a law firm ultimately decided against bearing the expenses of going to a jury trial and folded, paying out the policy limits of $500,000 to the umbrella company and leaving the umbrella company to continue fighting the case. The umbrella settled the case for $495,000, so that was the car insurance money. The umbrella did not pay out anything. I was angry about the whole thing, but ultimately had to be grateful that I did not lose any assets, or even suffer a claim against my umbrella policy.

[@Clark]

It shouldn't be a problem if you have more than $2 million in assets. 💚

[@Clark]

@@genxx2724 😲 Wow! That was unfortunate, but the silver lining is that you didn't have to tough the umbrella policy. 💚

[@genxx2724]

@@Clark it was two young women doctors who work for a university medical group. The passenger not only attended a wedding after she claimed she was injured (traumatic brain injury, which apparently is the modern, alarmist term for a whiplash), but also went on a trip to a Third World country and wrote in her journal that she had been worried about the bumpy roads, but she didn’t have any problem. Her biggest problem was finding gluten-free foods due to her celiac disease. She didn’t have anything wrong with her that wasn’t a symptom of her numerous medical conditions that were already documented. Her coworker, the driver, said the claimant was totally fine at work. Additionally, she moved, became pregnant, and had the baby during the time of the case was pending.

[@MichaelJohnson-ni4gk]

I had the same issue and found a stackable policy with Travelers 1 mil auto liability and 2 mil umbrella for $633 per year.

[@gmemo4449]

Just saw your video here at work, and thank you for the Phone Plan Finder tip! Also you talking about the Umbrella Insurance really made me think? I keep wanting to ask this question but I always forget, why do you wear two watches Clark? Thank you!

[@Casmige]

Q: does the call in consultation service come with a “Scratch-&-Sniff” on-demand “Clark Stinks” desk-top feature?. I’d love an accompanying aroma to go with my Cup-o-Clark Consultation.

[@Clark]

Maybe! 😜

[@marietaylor5174]

Thank you Team Clark.

[@MrGus.1]

Isn't an umbrella policy just a lawsuit magnet? If you have 2 million in assets and a 2 million dollar umbrella policy, you're going to get sued for 4 million dollars in a catastrophic accident. The ambulance chasers will be lined up to sue!

[@genxx2724]

Not just in a catastrophic accident. You can also be sued for a minor tap.

[@SpookyEng1]

So I guess you should be broke to avoid lawsuits?

[@maureenparran8918]

Another great video, thank you 👍😃

[@k12914]

I have yet to hear a clear formula and rationale as to exactly how much umbrella insurance to purchase. And don't even start with the "match your assets" idea. If you have $1 M assets, followed the sage advice to buy $1 M of insurance, then get sued for $2 M, you're SOL.

[@warsurplus]

Never trade unsecured debt for secured debt. Work with a legitimate credit counselor to reduce your debt and pay it off. Don't take on more secured debt.

[@aperson1181]

We have been happy w/ US Mobil on Verizon towers

[@jw6180]

Insurance companies have been taking people’s money and bailing. Who can we trust?

[@DB-xp9px]

umbrellas are cheap enuf to replace that i don't think i need to carry insurance on mine☔

[@Clark]

🥁 ba-dum-ching! 😂💚

[@michellebowers8652]

I am self employed and contribute to both a solo 401k and a SEP. The tax savings are great.

[@Clark]

Way to go! 👏👏👏

[@shanec.7105]

Is Apple pay better than using credit card where you get cash rewards? Seem like Apple pay is waste of time; even though its convenient.

[@Iamwithspirit]

Not true nowadays. PayPal codes the purchase as grocery, for instance, and you should be getting all credit card rewards you are due. If you discover missing rewards, your credit card issuer will likely work it out with you as well.

[@TheHavocdog]

If they dont want to be in the automatic enrollment, they can then opt out.

[@TheHavocdog]

Early in my career I only put in about 5 percent. But I took most of it out in my mid 30s to help buy a house. By my late 30s I had less then $80,000 and realized I could be in trouble for retirement. I started raising the percentage by 1% each year until I reached 15%. In my late 50s, I reduced my 401k percentage to comply with the max limits that the IRS allows. My accounts now exceed $1,000,000 as I near retirement.

[@unclefester6501]

That doctor was an idiot. Put the kid on their own insurance separate from yours as early as possible. Don't go with the minimum limits and get the umbrella.

[@xw9476tw]

Name one custodian of a Roth SEP. There isn't any.

[@bman3020]

1/1/25

[@yclept9]

Umbrella policy doesn't protect your million, it just pays off the first million in judgment. It they sue for $2 million, they take your million and the umbrella policy's million. In effect it just gives you bigger pockets to sue.

[@genxx2724]

@@silentnot4812 I agree. Insurance companies will retain large respected law firms that are much more professional than sole practitioner or small firm shysters, and have the manpower to wear them down. I always thought of my umbrella as protection in case I had a tragic accident and resulting in profound injury or death. But an unethical person sued me, claiming millions over a fender bender.

[@blackworldtraveler3711]

That’s why I kept most of my money in 401k.

[@genxx2724]

@@blackworldtraveler3711 I just retired. I will leave my money in my 401(k) and 457, rather than rolling them over to Fidelity. It is safer for those assets to remain in protected ERISA and government retirement plans, than to risk ever having to prove that they came from an ERISA/government retirement plan, especially if I am incapacitated or not as mentally sharp as I am now. BWT, I always appreciate the contributions you make with your comments. I wish I could know you personally.

[@MrGus.1]

​@@blackworldtraveler3711I don't think 401K (IRA) assets are protected from lawsuits. A jury might be a little resistant to taking all your retirement, but if you are being sued, your IRA is just one more asset 9n the table to be grabbed.

[@blackworldtraveler3711]

@@MrGus.1 The 401k is a ERISA qualified plan and protected in my state. I’ve done my due diligence before adjusting my retirement portfolio and early retirement(FIRE) in 2020. The only exception is back taxes and child support. Also have double homestead exemption including senior tax freeze when I reach 65 in a few years among other things.

[@markselby3542]

FL protects your home and retirement accounts. His story is off.

[@retired8484]

All Roth, but 4% is not even a start. Make it at least 20% to start.

[@Clark]

20% is ideal! But for people who are already wheezing financially, do it Clark's way - start at 4% and add 1% every 6 months until you get up to 20%. 💚

[@dandinhofer9240]

I take great exception to your comment about taking care of a parent. Some of us "kids" have ethics. Some of us "kids" took care of our father and mother with horrible disabilities for DECADES. Some of us "kids" were completely selfless, sacrificing a promising career after paying our own way thru college to provide caregiving to a parent with Parkinson's. Your flippant remarks touched a chord, and it was painfully unfunny and unfortunate😢

[@genxx2724]

Unfortunately, his remark was about what happens all too often. You should be incensed that it’s true, being that you’ve worked so hard and been dutiful.

[@retired8484]

Never never never destroy your retirement accounts. Pay your debts and do not touch your retirement accounts.

[@genxx2724]

I would also say never make unsecured debt into secured debt. I think they should just buckle down and pay off the credit cards.

[@Clark]

💯💯💯

[@Clark]

@@genxx2724 💯

[@Iamwithspirit]

Yes! Paying it off the “easy”😮way just encourages further debt in the future.

[@richardrollins184]

you are just great

[@blackworldtraveler3711]

Wonder if people ever read these HELOC documents before signing up. I think it’s a terrifying read personally. Many lost their home because of HELOCs during Great Recession/housing crash. Banks were not merciful back then.

[@genxx2724]

My untouched HELOC was called in in 2008. It was extremely annoying because I am in coastal Southern California where property values do not plummet. It is a completely different situation than the “Inland Empire” g-dforsaken desert, including the Antelope Valley and Palmdale, which are low-value homes that are extremely facile.

[@blackworldtraveler3711]

@@genxx2724 Would know. Only debt I ever had was a nine year mortgage and my residences are in Oklahoma,Florida,Italy,and Switzerland.

[@Constitution1789]

I don't support the government's paternalistic approach of forcing individuals to automatically enroll in retirement plans. The world would be a more stable and peaceful place if the federal government simply stopped printing money and meddling in the affairs of every single thing on this planet.

[@veggieman357]

When people don't save and prepare for the future, they turn to the government for help in some way.

[@wwz1011]

Sadly, too few enroll, even foregoing the company match. Later when they retire they realize the huge mistake they made. As far as the Fed Government, they will continue to run huge deficits until the rest of the world stops loaning us money (see Greece).

[@stevesntrains]

@@silentnot4812you, like me believe in self reliance. However, as a society we do have an obligation to at least educate the stupid to be self reliant

[@veggieman357]

@@silentnot4812 agree, but we are not a heartless country.

[@dpporlando]

Not something I would expect from the best, richest, strongest, leader by example country in the history of Earth. Social Security keeps elderly people from eating dog food. Not a joke.

[@mca9169]

Relax every thing is ok worried too much about money

[@elitepctech]

Traditional IRAs are better than Roth since contributions are tax deductible on top of the standard deduction.

[@davidshelton7208]

Not true for most since federal income tax rates are at historic lows right now. Plus this doesn’t address other issues you will encounter later in life like Medicare premium increases, social security taxes, RMDs, and when the IRA is inherited for example.

[@wisulliv]

I would look a little deeper into retirement accounts.

[@wwz1011]

Taking a small tax savings now to forego a large tax savings later is foolish, particularly in the early years, that have a high likelihood of massive growth.

[@dpporlando]

Short answer is it depends. For many folks $800 lower tax bill might make a big difference. Roth really is a gift to slightly more affluent taxpayers all the way around.

[@leeluna6495]

The ideal scenario is to have some money in brokerage, TradIRA, and Roth so you can take distributions in retirement to optimize the ACA (Roth doesn't count as income in this case) and keep your tax bracket low (brokerage is taxed less than ordinary income like the TradIRA). Roths are then used as a resource which doesn't push your income up for either ACA or taxes.

[@tmdx6345]

Someone already provides phone info

[@Clark]

Somebody else has a tool where you can plug in everything you need in a phone service, and it will tell you which plans are best for you? If so, please share the link, so we can check it out. 💚