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The Clark Howard Podcast

07.27.22 VANGUARD: Lesson From The Tax Bill Debacle / Air Travel Strategies

The Clark Howard Podcast

Clark Howard

Investing, Entrepreneurship, Business

4.64.9K Ratings

🗓️ 27 July 2022

⏱️ 37 minutes

🧾️ Download transcript

Summary

Clark explains how Vanguard small investors got clobbered by big tax bills during a target retirement fund conversion, without even withdrawing money. Learn where to put your investments to avoid such tax hits. Also - Air travel is a flat out mess right now. Infrequent travelers are especially rattled. International travel is especially challenging. It’s taking extra days to reach destinations. As a constant traveler, Clark has several strategies to help protect your sanity during domestic & international flights and cruises. Tax Smart Investing: Segment 1 Ask Clark: Segment 2 Strategies to Avoid Air Travel Nightmares: Segment 3 Ask Clark: Segment 4 Mentioned on the show: How To Open a Roth IRA How to Start Investing and Saving for Retirement SpaceX and Dish’s Super-Shady War for the World Travel Archives - Clark Howard Eager to take advantage of the cheap euro? Check out which countries have COVID travel requirements first Europe is on sale. Why the dollar-euro exchange rate is a win for Americans The Best Credit Cards With No Foreign Transaction Fees Clark.com resources Episode transcripts Clark.com daily money newsletter Consumer Action Center Free Helpline: 636-492-5275 Learn more about your ad choices: megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

It's my pleasure to welcome you to the Clark Howard Show, our mission is to serve you

0:09.6

and empower you to make better financial decisions in your life.

0:15.1

Hope that you're subscribed to our daily newsletters at Clark.com and ClarkDeals.com.

0:22.3

You know what they cost?

0:24.0

They're free but they could make you a lot of money or save you big money.

0:30.2

Today I've got an update on what was a ridiculous debacle at Vanguard and investors that out

0:40.4

of nowhere were clobbered with giant tax bills even though they didn't change a thing they

0:46.8

had not withdrawn their money.

0:49.4

So who travel?

0:53.6

A little complicated this summer and there's a meltdown with the airlines and I want to

1:01.1

tell you how best to protect yourself with what's going on with travel, some things that

1:08.6

are normal strategies in my playbook might not be in yours.

1:13.2

You need to adopt them.

1:15.9

So Vanguard.

1:18.4

Vanguard is basically a credit union for investing owned by its members.

1:26.4

And so being that type of organization, a co-op, you think that Vanguard would do what was

1:33.7

best for all its members.

1:37.0

But no, Vanguard did something sneaky, dirty, underhanded and ended up sticking a lot of

1:46.0

its smaller investors with ugly, massive tax bills.

1:52.3

What Vanguard did is there's a product you've heard me talk about a lot, a Target Retirement

1:57.1

Fund where if you're not really somebody who's into investing, you get confused by

2:05.3

it whatever, it's a set it and forget it kind of thing.

...

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