The Wit and Wisdom of Clark Howard  

By Mike McLeod

Consumer advocate Clark Howard is an icon in Atlanta, and he is read, heard and seen around the nation in his syndicated newspaper columns, in his books and on TV and radio. I recently had an opportunity to speak with Clark and ask him some burning questions about his personal life and of course, about saving money. Here they are.

My wife wants me to ask you, why are you always so cheerful?

Clark: I've got a pretty good life. I don't have much to frown about.

What's the question you hear most often from people?

"When people are just making conversation and small talk, they usually start out discussing the weather or sports. With me, they ask, 'How much did you pay for that shirt?' That's just the image I have. It's true. I'm cheap."

I've read that you haven't checked a bag on an airplane since 1979. How do you do that when you are going away for a week or more?

"It's true. I haven't checked a bag since then. It's amazing ­ if you economize ­ how much you can get in one bag. For me, I don't dress up. If I were on a cruise where I had to have a tuxedo, that would be a different challenge. I just wear basic clothing. I never need to take more than a week's worth of clothing in one carry-on bag.

"When I was on the book tour last year, I used the laundry. I was gone for three weeks, and I did my laundry twice. I carried one bag the whole time. When you are doing a city a day, and you have to check a bag and then claim it, that amount of time really adds up."

Then he naturally slipped into Clark-the-consumer-advocate mode with this advice:
"If you do decide to check in luggage the next time you travel, be sure you don't pack anything the airlines deem to be valuable, or they won't cover it in the event of a loss. So don't check any jewelry, electronics, computers or medication that you need on a daily basis.

"Always keep one change of clothing in your carry-on in the event that your luggage is lost. And bear in mind that you're also allowed to bring a computer bag or purse in addition to a standard carry-on case."

I am now hearing about scams in reverse mortgages. What should seniors watch out for?

"The way the rip off works is, insurance agents con people into doing a cash-out reverse mortgage and then get them to put that money into variable annuities. That's bad on so many levels. With a reverse mortgage, you need to think through why you need to do one. One reason why you could do a reverse mortgage is if you don't care if no one inherits your house. Another reason is if you don't have enough money to get by, and you want to stay in your home. If you live a long time, a reverse mortgage can be a positive thing because you make money and get to stay in the house. But few meet these requirements.

"Reverse mortgages are more expensive to set up than a regular mortgage. They can cost up to 10% of the value of a house. Legitimate reverse mortgage companies require you to go through counseling first so you understand the ramifications."

I'm looking into medical tourism to get some dental crowns done because my dentist wants $865 per crown, and she says I need five. I figure it's cheaper to go to Costa Rica, have it done, and have a vacation at the same time. The question is, are these dentists medically qualified?

"I'm not a doctor or a dentist, but it was the people who pioneered going overseas for medical care that took the chances. Today, it is reliable. In Europe, Hungary is the center for affordable dental care.

"For surgery that is urgent but not an emergency, people are going to India, Singapore and Thailand. Their medical centers meet world class standards.

"With dental, you have the travel expenses to overcome. But there is a guy at the station [WSB TV] that did it, and he saved a fortune. He had extensive work done, something involving the jaw, and he had to go three times. But even going three times, he saved $30,000."

Do you have any new books coming out?

"I am now working on an outline for my next book, Save More, Spend Less and Avoid Getting Ripped Off. It is book number 9, and it will be on general consumer tips."

Have your books sold millions?

I haven't thought about it. I don't know. I have had books on the New York Times' Best Seller List.

So with all you have going on, are there any Clark Howard action movies planned?

(Laughs) "No."

No Captain Savings, huh? Okay. What about Mayor Howard? I've heard you have political aspirations. Are you looking toward running for Mayor of Atlanta or Congress? It would be good to see some fiscal responsibility in both of them.

"My wife and I have talked about it a lot. I'm not sure what I am going to do. We have two young children, a second grader and a two year old, and another child in college. Politics is hard on young kids."

Do people ask you to promote their charities all the time?

"I get a lot of people asking for help. I have to limit what I get involved in. I love Habitat for Humanity. We are in the midst of our 30th home build. We are building five houses now, and when completed, the fifth will be the 30th. They will be done by March 1st."

What do you think about the 55+ housing market for 2008?

"Long term, the builders would be smart to build homes with the 55+ market in mind. They are missing an opportunity in not doing so. They need to put in wider doors and higher electrical outlets. At Habitat, we do that. We build houses geared toward the aging population. Do you know what it costs to do that? Nothing extra.

"Builders do things the way they have always done them. They are missing a special opportunity by not building for those over the age of 55."

Has 55+ housing been affected by the current conditions in the housing market?

"The housing slump is affecting the 55+ market. Buyers can't sell the houses they have for what they want. They are frozen in their homes. I just moved my Mom to a 55+ community. She was in a condo, and we can't figure out what to do with it. Should we try and sell it or rent?"

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I specifically asked Clark for some tips for our readers. Here are "Clark Howard's Tips for Modern Senior Living Magazine readers":

Tip: Mortgages during retirement.
On the opposite side of reverse mortgages, there seems to be an obsession to be mortgage-free. If you enter retirement with a mortgage, and it is at a decent rate, don't pay it off and wipe out your cash. The problem is, once it is paid off, coming up with a source of cash is difficult. You don't want to be house rich and cash poor. You will need money over time."

Tip: Save money on eyeglasses.
"Use Zenni Optical (www.zennioptical.com, 800-211-2105) for prescription eyeglasses. I bought a set of glasses at Costco, which is probably the best place around here for them, and they cost me $175. At Zenni, they cost me $41."

Mike: I can second Clark on this advice. I bought a pair of bi-focals and frames for $45 from Zenni.

Tip: Save money on your Internet service.
"Most seniors are on the Internet. They can cut back on their Internet cost. AT&T is required to provide DSL for $10 per month. This is the 786k speed, which isn't fast enough for downloading movies, but for surfing the Internet and for email, it is fine.

Tip: Do Not Call List.
"It's important that people 55+ put themselves on the Do Not Call List with the Direct Marketing Association. Visit www.DMAchoice.org [then click on "Remove My Name From Those Lists] to remove yourself from the junk mail lists for free. You have to enter your name and address, and they do ask for a credit card number, but they won't charge it. They just want to verify who you are. They won't steal your identity."

Tip: Freeze your credit.
"People should freeze their credit file. This will protect them from financial identity theft. The Georgia Legislature is working on a bill that allows you to freeze your credit so no one can access it without the secret code that you are issued. What this does is, if someone steals your Social Security number and tries to get a credit card with it, they won't be able to. They will need your secret code to apply for credit.

"The bill they are working on lets seniors over 65 freeze their credit for free. Everyone else can do it for a minor amount, $3 to $5."

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This is a special year for Clark Howard. He is celebrating his 10th anniversary of being in syndication and the 15th anniversary for his Consumer Action Center, which is staffed by 100+ volunteers who educate and empower consumers to resolve their issues. Clark is on the road again visiting his radio station affiliates around the country to celebrate these anniversaries. And as he flies to those cities, you can bet that he's only taking one carry-on bag.

Clark Howard's Consumer Action Center can be reached at 404-892-8227, and you can get more tips and information at www.clarkhoward.com.

All photos are courtesy of Clark Howard.