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Clark Howard Stinks


These are his words… not mine. Clark Howard is a talk show personality who helps people save money and avoid rip-offs. He has great advice on a wide variety of topics. 

At one time he also had a section referred to as “Clark Stinks”, where people could offer rebuttals. A memorable segment was where Clark claimed that he lives on 40% of his income and saves the rest. A caller challenged him saying that this was highly misleading.

The caller points out that since Clark earns a very high income, probably at least $1 million annually or more, then 40% of that is $400,000. The callers’ income is $50,000 annually so 40% of that is barely $20,000 a year. There is a huge difference living on $400,000 versus $20,000.

This caller made an astute observation which undermines some of Clark’s advice… one size does not fit all. Clark may have some good advice when buying a car or going on vacation. However, applying his generic, anecdotal advice when it comes to investments, life insurance, and debt could be detrimental.

A very interesting fact: Clark’s financial advice appears to be geared to the average household, which earns $50,000 annually. Only 25% of all American households earn more than $80,000 per year. If your income and/or net worth is above average then you might want to consider getting your advice from a professional.

By all means, listen to his radio show. I do. Clark Howard has an interesting show and has something for everyone. At the same time, be skeptical and read their website disclaimers… Who is taking responsibility for the advice they give?

Engage a financial professional who can create a plan that is as unique as you are and is held accountable for the advice they give.

The information presented here is for educational purposes only and shall not be construed or interpreted as a solicitation to sell or offer to sell any specific securities, investments, or investment strategies. The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.